Carleton Announces First Quarter Results; CompanyFocuses on Building Foundation for Near-Term...

MINNETONKA, Minn.--(BUSINESS WIRE)--Aug. 13, 1999--

Carleton Corporation (Nasdaq:CARL) today announced the results of its first quarter of Fiscal Year 2000 ending June 28, 1999, showing revenues of $1.13 million and a net loss of $ (.69) per share. These results compare to restated revenues

"While Carleton did not achieve its first quarter revenue goals due to the timing of certain key deals, we did make substantial progress in establishing the business foundation for sustained future growth," said Robert D. Gordon, president and CEO of Carleton Corp. "This progress included the development of a $13 million pipeline of new business opportunities, significant movement toward formalizing business partnerships with leading systems integrators and the formal introduction of our new graphical Pure.View(TM) product suite."

"The Company also made progress in identifying strategic financial and business partners to provide additional capital to realize the full sales potential of Carleton's Pure.View customer data management solution. We anticipate disclosing new financing arrangements within the next 30 days for approval at our annual shareholders meeting on September 30, 1999," Gordon continued.

The information in this press release contains forward-looking statements that involve risks. Carleton cautions readers that actual results could differ materially from results suggested by these statements. Factors that could cause actual results to differ are discussed in Carleton's annual report on Form 10-K for the year ended March 28, 1999.

About Carleton

Headquartered in Minnetonka, Minn., Carleton is a leader in customer data management solutions for customer relationship management and related analytical applications. Carleton Pure.View enables organizations to integrate and deliver customer data from across the enterprise for use in decision support systems and new front-office applications. Pure.View's Active Customer Data Management(TM) architecture provides the full range of customer data transformation, integration, and cleansing capabilities in an integrated, cost-effective solution. With Pure.View, organizations benefit by delivering their sales and marketing applications faster with higher quality customer data.

Pure data Pure results

All brand names and products are trademarks or registered trademarks of their respective companies.

NOTE TO EDITORS: The product name Pure.View(R) referred to in this news release contains a bullet between Pure and View. This symbol may not appear properly in some systems. -0-

Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
                                    Three Months Ended
                             June 27, 1999        June 28, 1998
                             -------------          (restated)
Revenues
 License                           $ 215                  $ 501
 Professional services               665                    522
 Other services                      247                    299
                                   -----                  -----
 Total Revenues                    1,127                  1,322

Costs of Revenues
 License                              35                    126
 Professional services               685                    590
 Other services                       48                     67
                                   -----                  -----
 Total Costs of Revenues             768                    783
                                   -----                  -----

 Gross Profit                        359                    539

Operating Expenses
 Research, development
  and engineering                    772                    927
 Selling, general and
  administrative                   1,252                  1,385
 Other charges                       661                    659
                                   -----                  -----
 Total Operating Expenses          2,685                  2,971
                                   -----                  -----
 (Loss) from Operations           (2,326)                (2,432)

Other Income (Expense)
 Investment income                    28                    152
 Interest expense and other         ( 21)                   (18)
                                   -----                  -----
 Total Other Income (Expense)          7                    134
                                   -----                  -----
(Loss) from Operations
  before Income Taxes             (2,319)                (2,298)
  Income tax expense                   -                      -
Net (Loss)                       ($2,319)               ($2,298)
                                 =======                =======

(Loss) per Common
 Share - Basic and Diluted         ($.69)                 ($.69)
                                 =======                =======

Weighted Average Shares
  Outstanding                      3,346                  3,323

Consolidated Balance Sheets
(Dollars in thousands)

                                (unaudited)
                               June 27, 1999       March 28, 1999
Assets
Current Assets
 Cash and cash equivalents        $2,349                $ 3,168
 Cash in escrow                       66                     65
 Accounts receivable - net         1,119                  2,016
 Other                               303                    296
                                  ------                -------
Total Current Assets               3,837                  5,545

Property and Equipment
 Property and equipment            2,683                  2,666
 Less accumulated
  depreciation                    (1,927)                (1,845)
                                  ------                 ------
 Net Property and Equipment          756                    821

Other Assets
 Intangible assets - net of
  accumulated amortization         3,523                  4,184
 Capitalized software - net
  of accumulated amortization        212                    231
                                  ------                 ------
Total Other Assets                 3,735                  4,415

 Total Assets                     $8,328                $10,781
                                  ======                =======

Liabilities and Shareholders'
  Equity
Current Liabilities
 Accounts payable                  $ 409                  $ 183
 Accrued expenses                  1,224                  1,421
 Deferred revenue                    796                    962
 Note payable                      1,000                  1,000
                                  ------                 ------
Total Current Liabilities          3,429                  3,566

Long-term Notes Payable              177                    174

Shareholders' Equity
 Common stock - authorized
 6,000,000 shares at $.25
 par value; issued and
 outstanding at:
  June 27, 1999 -
    3,346,244 shares
  March 28, 1999 -
    3,345,918 shares                 836                    836
 Additional paid-in capital       62,779                 62,779
 Retained deficit                (58,893)               (56,574)
                                 -------                -------
Total Shareholders' Equity         4,722                  7,041

Total Liabilities and
 Shareholders' Equity             $8,328                $10,781
                                 =======                =======