Borland Files For Extension of Form 10-K Filing

    Business Editors/High-Tech Writers

    SCOTTS VALLEY, Calif.--(BUSINESS WIRE)--March 16, 2005--

    SEC Rule Permits 15 Day Extension; Expects Audited 2004 Financial
    Statements to be Consistent with Previously Announced Unaudited
    2004 Financial Results

    Borland Software Corporation (NASDAQ:BORL) today announced that, in accordance with Rule 12b-25 under the Securities Exchange Act of 1934, it has filed an extension notification with the Securities and Exchange Commission relating to its Annual Report on Form 10-K for the year ended December 31, 2004. The Company stated that the additional time required is a direct result of the significant requirements imposed on public companies in complying with the Sarbanes-Oxley Act of 2002. The extension will allow for further time to complete the audit of its consolidated financial statements.
    Borland expects to be able to file its Annual Report on Form 10-K, inclusive of management's assessment of internal controls for the year ended December 31, 2004, by March 31, 2005. The expected inclusion of management's assessment of internal controls in this time frame would be approximately 30 days earlier than permitted under the Exemptive Order issued by the Securities and Exchange Commission on November 30, 2004 (Release No. 50754) allowing for deferral of such assessment for certain public companies. Based on its market value as of June 30, 2004, Borland is eligible for the relief provided by the Exemptive Order. Borland may, if necessary, in compliance with the Exemptive Order, defer the filing of management's assessment of internal control over financial reporting until such later date as management can complete its assessment.
    Borland believes that its results of operations to be reflected in the financial statements included in the Annual Report on Form 10-K will be consistent with its announcement of unaudited 2004 financial results on February 1, 2005.

    About Borland

    Founded in 1983, Borland Software Corporation (NASDAQ:BORL) is a global leader in Software Delivery Optimization. The company provides the software and services that align the people, processes and technology required to maximize the business value of software. To learn more about delivering quality software, on time and within budget, visit: http://www.borland.com.

    Safe Harbor Statement

    This release contains "forward-looking statements" as defined under the Federal Securities Laws, including the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created by such laws. Forward-looking statements may relate to, but are not limited to, Borland's future financial and operating results, and the timing of Borland's required public disclosures. Such forward-looking statements are based on current expectations that involve a number of uncertainties and risks that may cause actual events or results to differ materially. Factors that could cause actual events or results to differ materially include, among others, the results of management's and its independent auditor's review of financial results and internal control over financial reporting, deficiencies in the Company's processes and procedures related to its disclosure controls or its internal control over financial reporting, and the timing required to test existing processes and procedures or develop additional processes and procedures necessary to complete an assessment of the Company's financial results or internal control over financial reporting. These and other risks may be detailed from time to time in Borland's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its latest Annual Report on Form 10-K and its latest Quarterly Report on Form 10-Q, copies of which may be obtained from http://www.sec.gov. Borland is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Information contained in our website is not incorporated by reference in, or made part of this press release.

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CONTACT: Borland Software Corporation Aaron Feigin, 408-863-2409 Aaron.feigin@borland.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: SOFTWARE SOURCE: Borland Software Corporation

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