ISOCOR Announces Preliminary First-QuarterResults.

SANTA MONICA, Calif.--(BUSINESS WIRE)--April 8, 1998--ISOCOR (Nasdaq:ICOR) Wednesday announced the preliminary results for the first quarter ended March 31, 1998.

These results are preliminary, subject to the company closing its books and the company's management and independent

Revenues for the first quarter ended March 31, 1998, are expected to be between $4.8 million and $5.2 million, compared with revenues of $3.8 million in the first quarter ended March 31, 1997.

The company expects to report a net loss for the first quarter ended March 31, 1998, in the range of $1.8 million to $2.4 million, or 19 cents to 25 cents net loss per share assuming no dilution, compared with a net loss of $3.2 million, or 34 cents net loss per share assuming no dilution, for the first quarter ended March 31, 1997.

ISOCOR stated that it plans to report definitive results for the first quarter during the week of April 20, 1998.

Paul Gigg, president and chief executive officer of ISOCOR, commented: "The new ISOCOR management team is enthusiastic and remains confident that the changes implemented over the past several months will position us for improved financial performance in 1998. We continue our focus on messaging and directory infrastructure for large corporations.

"In addition, our new initiative of providing messaging and directory software to Internet service providers is on schedule and our lead product for that market -- N-Plex on UNIX -- is now shipping. This new product is generating significant customer interest, which we expect to capitalize on in the coming quarters."

Janine Bushman, chief financial officer of ISOCOR, explained: "We believe there are three primary reasons for revenues not meeting expectations: (1) transactions anticipated to close by March 31, 1998, but that did not close until April 1998 amounted to approximately $650,000; (2) a slowdown in Asian business accounted for approximately $300,000 of the shortfall from expectations; and (3) application of a new software accounting standard delayed revenue recognition by approximately $300,000.

"This standard, which applies to all companies who recognize revenue from software transactions, had the impact of delaying into future quarters revenues which under the previous standard would have been recognized in the first quarter of 1998. The company expects that the revenues delayed from the first quarter of 1998 will be recognizable in the second quarter of 1998."

ISOCOR is a leading international provider of scalable, standards-based software for messaging and directory infrastructures utilizing Internet technologies and international standards. ISOCOR solutions are designed to enable customers to implement open, robust, high-performance extranets and intranets, linking dissimilar messaging, directory and business applications.

With headquarters in California, ISOCOR is a global organization with major development centers in Santa Monica; Dublin, Ireland; and Berlin. ISOCOR has sales/support offices in key international business centers, including Washington, D.C.; London; Paris; Berlin; and Bern, Switzerland. -0-

Except for the historical information, the matters discussed in this news release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such factors include timely development and acceptance of new products in evolving markets, the impact of competitive announcements and products, the company's ability to increase revenues, the rate of growth of the markets in which the company competes, the specific timing of customer purchases of the company's products, the impact of accounting standards, the effect and rate of change in standards and platforms for messaging products, as well as the risk factors listed from time to time in the company's Securities and Exchange Commission reports, including but not limited to the report on Form 10-K for the year ended Dec. 31, 1997, and/or Form 10-Q for the quarter ended Sept. 30, 1997, copies of which are available from ISOCOR's Investor Relations Department. The company assumes no obligation to update the forward-looking statements included in this news release.

CONTACT: ISOCOR

Janine Bushman, 310/581-8100

or

Financial Relations Board, Los Angeles

Fiona Ross/George Christy, 310/442-0599 (general info.)

James Hoyne, 310/442-0599 (analyst contact)

Michaelle Burstin, 310/442-0599 (media contact)