Business Objects to Acquire Firstlogic, Inc.; Business Objects Adds Data Quality to the Industry's Leading Business Intelligence Platform and Strengthens Company's EIM Offering

Business Objects (Nasdaq:BOBJ) (Euronext Paris ISINcode: FR0004026250 - BOB), the world's leading provider of businessintelligence (BI) solutions, today announced that it has entered intoa definitive agreement to acquire privately-held Firstlogic, Inc., aglobal provider of enterprise data quality solutions and services.Building on the company's EIM (enterprise information management)strategy, this acquisition will provide customers with a single,consistent view of their business, improve the trust and confidence inthe information needed to make better decisions, and acceleratecompliance initiatives.

The acquisition will be an all-cash transaction of approximately$69 million. The transaction will be accounted for under the purchasemethod of accounting. In 2006, the transaction is expected to beaccretive to Business Objects on a non-GAAP basis and dilutive on aGAAP basis due to one time charges and purchase accountingadjustments. The acquisition is subject to regulatory approvals andother customary closing conditions, and is expected to be completed inthe second quarter of 2006.

"Building a business intelligence strategy without a complete EIMsolution is like trying to complete a puzzle without all the pieces,"said John Schwarz, CEO of Business Objects. "With today's acquisitionof Firstlogic, Business Objects acquires one of the most importantpieces of the EIM puzzle -- data quality. Business Objects is the onlyBI vendor that provides a complete EIM solution, enabling trustworthy,timely, and actionable information. This acquisition will strengthenour competitive advantage as customers increasingly standardize on oneplatform, and will give our customers the capabilities they need tocreate truly world class, game-changing business intelligencedeployments."

"EIM will play an increasingly vital role in the businessintelligence market," continued Schwarz. "As companies face themultiple pressures of regulatory compliance, expanding numbers of datasources, the need for real-time operations, and the ability to linkdata to performance management initiatives, customers are demanding anEIM solution that can help them scale with these fast changingdynamics. This is why Business Objects is investing in EIM solutions,and why we believe this will be an important growth driver for ourcompany in the years to come."

"Unlike other business intelligence vendors, Business Objects hasa deep commitment to data integration, as seen in its world-class ETL(extraction, transformation, and load) tool and recent acquisition ofEII (enterprise information integration) technology," said PhilipRussom, senior manager of research at The Data Warehousing Institute."But data integration inexorably reveals data quality issues, whetherproblems to be fixed or opportunities to be leveraged. BusinessObjects' acquisition of Firstlogic recognizes that best practicesdemand tight interoperability between data integration and dataquality."

Firstlogic is a privately held company with 2005 revenues inexcess of $50 million and is a recognized leader in data quality. Forover 20 years, Firstlogic has provided technology solutions, services,education, and consulting to help businesses establish confidence inthe data driving their businesses. Firstlogic offers enterprise dataquality management solutions that support the full breadth of dataquality capabilities including initial data assessment andmeasurement, data cleansing, data enrichment, matching andconsolidation, and continuous monitoring.

Over 6,000 customers worldwide have selected Firstlogic as theirpartner of choice for ensuring the quality of their information withindata warehouse and business intelligence systems, customer and masterdata integration programs, CRM applications, transaction environmentssuch as call centers and Web sites, and other enterprise initiatives.Firstlogic and Business Objects have been technology partners sinceApril 2004 and currently support joint customers including Harry &David Operations Corporation, National Offender Management Service(UK), and Omnium Worldwide.

Also today, Business Objects announced an expanded reselleragreement with Firstlogic, enabling the company to resell Firstlogic'smatch consolidation technology, which is already tightly integratedwith BusinessObjects Data Integrator.

"Today's announcement affirms the importance of data qualitytechnology to ensuring that business decisions are made on afoundation of correct and complete data," said Eric Lieberman,president of Firstlogic, Inc. "We expect this acquisition to helpcustomers build a stronger BI infrastructure, thus accelerating thegrowth and success of their BI deployments and giving them a moreaccurate view of their business."

About Firstlogic

Firstlogic is the recognized market leader for enterprise-wideinformation quality and mail solutions. In addition to developingcommercial solutions, Firstlogic partners with many systemsintegrators, consultants, and original equipment manufacturers toprovide its unique technology to their end-user customers. Founded in1984, Firstlogic today serves thousands of customers worldwide,including Global 2000 companies across a broad spectrum of industries.For more information, visit www.firstlogic.com.

About Business Objects

Business Objects is the world's leading business intelligence (BI)software company. With more than 35,000 customers worldwide, includingover 80 percent of the Fortune 500, Business Objects helpsorganizations gain better insight into their business, improvedecision making, and optimize enterprise performance. The company'sbusiness intelligence platform, BusinessObjects(TM) XI, offers the BIindustry's most advanced and complete platform for performancemanagement, planning, reporting, query and analysis, and dataintegration. BusinessObjects XI includes Crystal Reports(R), theindustry standard for enterprise reporting. Business Objects has builtthe industry's strongest and most diverse partner community, and alsooffers consulting and education services to help customers effectivelydeploy their business intelligence projects.

Business Objects has dual headquarters in San Jose, Calif., andParis, France. The company's stock is traded on both the Nasdaq (BOBJ)and Euronext Paris (ISIN: FR0004026250 - BOB) stock exchanges. Moreinformation about Business Objects can be found atwww.businessobjects.com.

Forward Looking Statements

This document contains forward-looking statements that involverisks and uncertainties concerning the Business Objects products,Firstlogic's products, the closing of the transaction, the benefits tocustomers from the acquisition and impact of the transaction onBusiness Objects' financial results. Actual events or results maydiffer materially from those described in this document due to anumber of risks and uncertainties. The potential risks anduncertainties include, among others: Business Objects' ability toattract and retain customer support for Firstlogic's products, theability to generate new sources of revenue from Firstlogic's products,to realize other financial benefits from the proposed acquisition, tostrengthen its position in data quality and data integration, as wellas the outcome of regulatory reviews of the transaction and theability of the parties to complete the proposed transaction. Moreinformation about potential factors that could affect BusinessObjects' business and financial results is included in BusinessObjects' Form 10-Q for the quarter ended September 30, 2005 andBusiness Objects Form 10-K for the year ended December 31, 2004, whichare on file with the Securities and Exchange Commission (the "SEC")and available at the SEC's website at www.sec.gov. Business Objects isnot obligated to undertake any obligation to update theseforward-looking statements to reflect events or circumstances afterthe date of this document.

Business Objects and the Business Objects logo, BusinessObjects,and Crystal Reports are intellectual property and trademarks orregistered trademarks of Business Objects S.A. or its affiliatedcompanies in the United States and/or other countries. All other namesmentioned herein may be intellectual property and trademarks of theirrespective owners.