Western Europe Personal Software Sales Reach $516.1 Million in First
Quarter, 1995

Windows software sales make up 90% of total market

June 12, 1995 (Washington, DC) - The Software Publishers Association (SPA)
announced today that personal computer software sales in Western Europe
reached $516.1 million in the first quarter of 1995, a 4% increase from
the first quarter of 1994. Unit sales for the period were up 41% compared
to the first quarter of 1994.

Competitive price pressures again held revenue growth in the region to a
minimum. Despite application unit growth of 41%, three out of the six
major operating system categories tracked by the SPA reported revenue
declines from the first quarter of 1994. Windows application revenues grew
11% from last year, but could not offset drops in DOS and Macintosh sales.
Windows sales now account for nearly 90% of the total market in Western
Europe.

Price competition was also evident among the major software application
categories. Of the three largest categories in Europe, only Relational
Databases posted a revenue increase (+9%) over Q194. Word Processor and
Spreadsheet sales fell 2% and 6%, respectively.

Software Sales in US Dollars

                          Q195 Sales of
                          Participating         Growth Q194
                         Firms (Millions)         to Q195

Benelux                    $ 41.4                   7%
France                     $ 71.4                   0%
Germany/Austria            $134.4                   1%
Greece                     $  1.2                  33%
Italy                      $ 31.7                   3%
Nordic                     $ 33.7                  45%
Spain/Portugal             $ 15.5                  34%
Sweden                     $ 27.1                  23%
Switzerland                $ 20.5                 (36%)
UK/Ireland                 $139.2                   4%

Total                      $516.1                   4%

Software revenues showed little or no growth in the three major European
markets (France, Germany/Austria, and UK/Ireland) during the first
quarter. UK/Ireland was the largest market for U.S. publishers during the
period, with $139.2 million in sales, an increase of 4% from last year.
The Nordic region, consisting of Denmark, Finland, Iceland, and Norway,
was the fastest growing market in Q195, with sales up 45% to $33.7
million. Software sales in Germany/Austria grew 1% to $134.4 million,
while the French market remained flat with $71.4 million in revenues.

"Software sales in the first quarter in Western Europe continue the trend
set in 1994," said SPA Europe Managing Director, Gerard Gabella. "The
corporate software market clearly show signs of maturity in the largest
countries, ie. the U.K., Germany and France. Software sales into the home
market, however, are far less significant than in North America and could
offer a new opportunity for U.S. publishers in the coming months."

Twenty-seven primarily US-based software firms participate in the SPA's
data program by submitting confidential data to the accounting firm of
Arthur Andersen, which prepares the report for the SPA. Prestigious
software companies such as Borland, Claris, Lotus, Microsoft, Software
Publishing Corporation, Symantec, and the WordPerfect Division of Novell
participate in the data program. The sales data is collected in 33
software categories, including word processors, spreadsheets, presentation
graphics, and others, and in six operating systems, including DOS,
Macintosh, and Windows.

The Software Publishers Association is the principal trade association of
the PC software industry. Its 1,100 members represent the leading
publishers in the business, consumer, and education markets. The SPA has
offices in Washington, DC, and Paris, France. SPA press releases are
available on-line through the new SPA Web site (http://www.spa.org) and
CompuServe (GO:SPAFORUM), as well as on the SPA faxback service at (800)
637-6823.

Software Publishers Association
1730 M St, Northwest, Suite 700, Washington, D.C. 20036
202-452-1600,  Fax: 202-223-8756

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