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Oracle Reports Q1 GAAP EPS Up 28% to 21 Cents, Non-GAAP EPS Up 32% to 29 Cents

New Software License Revenues Up 14%, Total GAAP Software Revenues Up 20%

REDWOOD SHORES, Calif., Sept. 18 /PRNewswire-FirstCall/ -- Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2009 Q1 GAAP earnings per share were up 28% to $0.21 compared to the same quarter last year. First quarter total GAAP revenues were up 18% to $5.3 billion, while quarterly GAAP net income was up 28% to $1.1 billion. Total GAAP software revenues were up 20% to $4.2 billion with new software license revenues up 14% to $1.2 billion. GAAP Software license updates and product support revenues were up 23% to $2.9 billion. GAAP Services revenues were up 9% to $1.2 billion. GAAP operating margins were up 170 basis points to 29%.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020718/ORCLLOGO)

First quarter non-GAAP earnings per share were up 32% to $0.29, and non- GAAP net income was up 32% to $1.5 billion, compared to the same quarter last year. Non-GAAP total revenues were up 18% to $5.4 billion. Non-GAAP total software revenues were up 21% to $4.3 billion and non-GAAP software license updates and product support revenues were up 24% to $3.0 billion.

"Our non-GAAP EPS grew 32% in Q1, and this comes after the 27% growth in Q1 of last year," said Oracle President and CFO, Safra Catz. "We also delivered a Q1 non-GAAP operating margin of 40%, our highest ever in Q1, up 350 basis points from the quarter a year ago. We continue to deliver consistent earnings growth well ahead of plan."

"Oracle has once again increased its database market share according to the latest Gartner research report," said Oracle CEO, Larry Ellison. "Oracle's 49% market share in the survey year 2007 was greater than the market share of the next 4 vendors combined: IBM, Microsoft, Teradata, and Sybase."

"More-and-more Oracle database customers are buying our integrated suite of standards based Fusion middleware to modernize their computing environments," said Charles Phillips, Oracle President. "The Oracle product line of database, middleware and applications is by far the most extensive in the enterprise software industry. That enables us to offer a broader range of solutions than any other software vendor."

Q1 Earnings Announcement

Oracle will hold a conference call and web broadcast today to discuss these results at 2:00 p.m. (PDT) / 5:00 p.m. (EDT). To access the live web broadcast of this event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. Please hold down your control key while pressing refresh to ensure that the web link is visible.

About Oracle

Oracle is the world's largest enterprise software company. For more information about Oracle, including supplemental financial information, please visit http://www.oracle.com/investor or call Investor Relations at (650) 506-4073.

Trademarks

Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans and prospects are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Economic, political and market conditions could adversely affect our revenue growth and profitability through reductions in IT budgets and expenditures. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, unanticipated fluctuations in currency exchange rates, delays in delivery of new products or releases, or a decline in our renewal rates for software license updates and product support. (3) We cannot assure market acceptance of new products or new versions of existing or acquired products. (4) We have an active acquisition program and our acquisitions may not be successful, may involve unanticipated costs or other integration issues, or may disrupt our existing operations. (5) Periodic changes to our pricing model and sales organization could temporarily disrupt operations and cause a decline or delay in sales. (6) Intense competitive forces demand rapid technological advances and frequent new product introductions, and could require us to reduce prices. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle Corporation's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle's Investor Relations website at http://www.oracle.com/investor. All information set forth in this release is current as of September 18, 2008. Oracle undertakes no duty to update any statement in light of new information or future events.



                             ORACLE  CORPORATION

                       Q1 FISCAL 2009 FINANCIAL RESULTS
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    ($ in millions, except per share data)

                         Three Months Ended August 31,
                        -------------------------------
                                                                 % Increase
                                                                  (Decrease)
                                                            %         in
                                   % of          % of   Increase   Constant
                        2008     Revenues  2007 Revenues in US $  Currency (1)
                       -------------------------------------------------------
    REVENUES
      New software
       licenses        $1,237        23%  $1,087   24%     14%       10%
      Software license
       updates and
       product support  2,935        55%   2,383   53%     23%       18%
                       --------------------------------
        Software
         Revenues       4,172        78%   3,470   77%     20%       16%
                       --------------------------------
      Services          1,159        22%   1,059   23%      9%        6%
                       --------------------------------
          Total
           Revenues     5,331       100%   4,529  100%     18%       14%
                       --------------------------------
    OPERATING EXPENSES
      Sales and
       marketing        1,112        21%     974   22%     14%       10%
      Software license
       updates and
       product support    282         5%     228    5%     24%       19%
      Cost of services  1,026        19%     931   21%     10%        7%
      Research and
       development        708        13%     652   14%      9%        8%
      General and
       administrative     206         4%     195    4%      5%        3%
      Amortization of
       intangible assets  413         8%     285    6%     45%       45%
      Acquisition
       related and other   49         1%      47    1%      6%        8%
      Restructuring        14         0%       -    0%       *         *
                       --------------------------------
          Total
           Operating
           Expenses     3,810        71%   3,312   73%     15%       12%
                       --------------------------------
    OPERATING INCOME    1,521        29%   1,217   27%     25%       18%
      Interest expense   (159)       (3%)    (94)  (2%)    71%       71%
      Non-operating
       income, net         82         1%      77    2%      7%        4%
                       --------------------------------
    INCOME BEFORE
     PROVISION FOR
     INCOME TAXES       1,444        27%   1,200   27%     20%       13%
                       --------------------------------
      Provision for
       income taxes       367         7%     360    8%      2%       (1%)
                       --------------------------------
    NET INCOME         $1,077        20%    $840   19%     28%       19%
                       ================================

    EARNINGS PER
     SHARE:
      Basic             $0.21              $0.16
      Diluted           $0.21              $0.16
    WEIGHTED AVERAGE
     COMMON SHARES
     OUTSTANDING:
      Basic             5,152              5,110
      Diluted           5,235              5,217

    (1)   We compare the percent change in the results from one period to
          another period using constant currency disclosure. We present
          constant currency information to provide a framework for assessing
          how our underlying businesses performed excluding the effect of
          foreign currency rate fluctuations.  To present this information,
          current and comparative prior period results for entities reporting
          in currencies other than United States dollars are converted into
          United States dollars at the exchange rate in effect on May 31,
          2008, which was the last day of our prior fiscal year, rather than
          the actual exchange rates in effect during the respective periods.
          The United States dollar weakened relative to major international
          currencies in the three months ended August 31, 2008 compared with
          the corresponding prior year period, contributing 4 percentage
          points of revenue, 3 percentage points of operating expense and 7
          percentage points of operating income growth.

     *    Not meaningful



                             ORACLE  CORPORATION

                       Q1 FISCAL 2009 FINANCIAL RESULTS
      RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
                    ($ in millions, except per share data)

                                                                  % Increase
                           Three Months Ended August 31,            in US $
                   -----------------------------------------------------------
                                   2008                      2007
                   2008            Non-     2007             Non-        Non-
                   GAAP      Adj.  GAAP     GAAP      Adj.   GAAP  GAAP  GAAP
                   -----------------------------------------------------------

    TOTAL
     REVENUES (2)  $5,331    $91  $5,422   $4,529     $64   $4,593  18%   18%

    TOTAL
     SOFTWARE
     REVENUES (2)  $4,172    $91  $4,263   $3,470     $64   $3,534  20%   21%
      New software
       licenses     1,237      -   1,237    1,087       -    1,087  14%   14%
      Software
       license
       updates and
       product
       support (2)  2,935     91   3,026    2,383      64    2,447  23%   24%
    TOTAL
     OPERATING
     EXPENSES      $3,810  $(562) $3,248   $3,312   $(401)  $2,911  15%   12%
      Stock-based
       compensation
       (3)             86    (86)      -       69     (69)       -  25%     *
      Amortization
       of intangible
       assets (4)     413   (413)      -      285    (285)       -  45%     *
      Acquisition
       related and
       other           49    (49)      -       47     (47)       -   6%     *
      Restructuring    14    (14)      -        -       -        -    *     *
    OPERATING
     INCOME        $1,521   $653  $2,174   $1,217    $465   $1,682  25%   29%
    OPERATING
     MARGIN %          29%            40%      27%              37%  6%   10%
    INCOME TAX
     EFFECTS (5)     $367   $186    $553     $360    $140     $500   2%   11%
    NET INCOME     $1,077   $467  $1,544     $840    $325   $1,165  28%   32%
    DILUTED
     EARNINGS PER
     SHARE          $0.21          $0.29    $0.16            $0.22  28%   32%
    DILUTED
     WEIGHTED
     AVERAGE
     COMMON
     SHARES
     OUTSTANDING    5,235      -   5,235    5,217       3    5,220   0%    0%

    (1) This presentation includes non-GAAP measures.  Our non-GAAP measures
        are not meant to be considered in isolation or as a substitute for
        comparable GAAP measures, and should be read only in conjunction with
        our consolidated financial statements prepared in accordance with
        GAAP.  For a detailed explanation of the adjustments made to
        comparable GAAP measures, the reasons why management uses these
        measures, the usefulness of these measures and the material
        limitations on the usefulness of these measures, please see Appendix
        A.
    (2) As of August 31, 2008, approximately $221 million in estimated
        revenues related to assumed support contracts will not be recognized
        in fiscal 2009 due to business combination accounting rules.
    (3) Stock-based compensation is included in the following GAAP operating
        expense categories:



                         Three Months Ended             Three Months Ended
                           August 31, 2008                August 31, 2007
                     ----------------------------    -------------------------
                     GAAP       Adj.    Non-GAAP     GAAP     Adj.    Non-GAAP
                     ----------------------------    -------------------------
    Sales and
     marketing       $19      $(19)         $-        $13     $(13)        $-
    Software license
     updates and
     product support   3        (3)          -          4       (4)         -
    Cost of services   3        (3)          -          4       (4)         -
    Research and
     development      37       (37)          -         28      (28)         -
    General and
     administrative   24       (24)          -         20      (20)         -
                     ------   ------       ------    ------  ------     ------
      Subtotal        86       (86)          -         69      (69)         -
                     ------   ------       ------    ------  ------     ------
    Acquisition
     related and
     other             5        (5)          -         32      (32)         -
                     ------   ------       ------    ------  ------     ------
    Total stock-
     based
     compensation    $91      $(91)         $-       $101    $(101)        $-
                     ======   ======       ======    ======  ======     ======



    (4) Estimated future annual amortization expense related to intangible
        assets as of August 31, 2008 is as follows:



    Remainder of Fiscal 2009   $1,271
    Fiscal 2010                 1,578
    Fiscal 2011                 1,288
    Fiscal 2012                 1,143
    Fiscal 2013                 1,013
    Fiscal 2014                   827
    Thereafter                  1,033
                               ------
      Total                    $8,153
                               ======




    (5) Income tax effects were calculated reflecting an effective GAAP tax
        rate of 25.4% and 30.0% in the first quarter of fiscal 2009 and 2008,
        respectively, and an effective non-GAAP tax rate of 26.4% and 30.0% in
        the first quarter of fiscal 2009 and 2008, respectively. Our non-GAAP
        tax rate in the first quarter of fiscal 2009 excludes the effect of an
        adjustment to our non-current deferred tax liability associated with
        acquired intangible assets.

    * Not meaningful



                             ORACLE  CORPORATION

                       Q1 FISCAL 2009 FINANCIAL RESULTS
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               ($ in millions)

                                                    August 31,       May 31,
                                                       2008           2008
                                                    ------------------------
    ASSETS
      Current Assets:
        Cash and cash equivalents                     $8,553         $8,262
        Marketable securities                          4,468          2,781
        Trade receivables, net                         3,260          5,127
        Deferred tax assets                              905            853
        Prepaid expenses and other current assets        665          1,080
                                                    ------------------------
          Total Current Assets                        17,851         18,103

      Non-Current Assets:
        Property, net                                  1,886          1,688
        Intangible assets, net                         8,153          8,395
        Goodwill                                      18,260         17,991
        Other assets                                   1,103          1,091
                                                    ------------------------
          Total Non-Current Assets                    29,402         29,165
                                                    ------------------------

    TOTAL ASSETS                                     $47,253        $47,268
                                                    ========================

    LIABILITIES AND STOCKHOLDERS' EQUITY

      Current Liabilities:
        Notes payable, current and other current
         borrowings                                   $1,001         $1,001
        Accounts payable                                 402            383
        Accrued compensation and related benefits      1,138          1,770
        Deferred revenues                              5,017          4,492
        Other current liabilities                      1,689          2,383
                                                    ------------------------
          Total Current Liabilities                    9,247         10,029

      Non-Current Liabilities:
        Notes payable and other non-current
         borrowings                                   10,236         10,235
        Income taxes payable                           1,638          1,566
        Deferred tax liabilities                       1,214          1,218
        Other non-current liabilities                  1,102          1,195
                                                    ------------------------
          Total Non-Current Liabilities               14,190         14,214

      Stockholders' Equity                            23,816         23,025
                                                    ------------------------

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $47,253        $47,268
                                                    ========================



                             ORACLE CORPORATION

                       Q1 FISCAL 2009 FINANCIAL RESULTS
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               ($ in millions)

                                                        Three Months Ended
                                                            August 31,
                                                       2008            2007
                                                    ------------------------
    Cash Flows From Operating Activities:
      Net income                                      $1,077           $840
      Adjustments to reconcile net income to net cash
       provided by operating activities:
        Depreciation                                      64             67
        Amortization of intangible assets                413            285
        Deferred income taxes                            (53)            24
        Minority interests in income                      16             12
        Stock-based compensation                          91            101
        Tax benefit on the exercise of stock options     101            129
        Excess tax benefits on the exercise of stock
         options                                         (65)           (82)
        In-process research and development                4              7
        Other gains, net                                  (1)             -
        Changes in operating assets and liabilities,
         net of effects from acquisitions:
          Decrease in trade receivables, net           1,812          1,381
          Decrease in prepaid expenses and other
           assets                                        397            161
          Decrease in accounts payable and other
           liabilities                                  (906)          (679)
          Decrease in income taxes payable              (361)          (301)
          Increase in deferred revenues                  651            756
                                                    ------------------------

            Net cash provided by operating activities  3,240          2,701
                                                    ------------------------

    Cash Flows From Investing Activities:
      Purchases of marketable securities and other
       investments                                    (3,188)          (896)
      Proceeds from maturities and sales of
       marketable securities and other investments     1,420            561
      Acquisitions, net of cash acquired                (395)          (546)
      Capital expenditures                              (323)           (87)
                                                    ------------------------

            Net cash used for investing activities    (2,486)          (968)
                                                    ------------------------

    Cash Flows From Financing Activities:
      Payments for repurchases of common stock          (500)          (530)
      Proceeds from issuances of common stock            280            317
      Repayments of borrowings                            (4)        (1,361)
      Excess tax benefits on the exercise of stock
       options                                            65             82
      Distributions to minority interests                (30)           (28)
                                                    ------------------------

            Net cash used for financing activities      (189)        (1,520)
                                                    ------------------------

    Effect of exchange rate changes on cash and cash
     equivalents                                        (274)            24
                                                    ------------------------
    Net increase in cash and cash equivalents            291            237
                                                    ------------------------
    Cash and cash equivalents at beginning of period   8,262          6,218
                                                    ------------------------
    Cash and cash equivalents at end of period        $8,553         $6,455
                                                    ========================



                             ORACLE  CORPORATION
                       Q1 FISCAL 2009 FINANCIAL RESULTS
                   FREE CASH FLOW - TRAILING 4-QUARTERS (1)
                               ($ in millions)

                               Fiscal 2008                  Fiscal 2009
                    ----------------------------------------------------------
                      Q1       Q2      Q3       Q4      Q1    Q2    Q3     Q4
                    ----------------------------------------------------------
    GAAP
     Operating
     Cash Flow      $6,598   $6,957  $7,322  $7,402   $7,941

    Capital
     Expenditures
     (2)              (357)    (369)   (331)   (243)    (479)
                    ----------------------------------------------------------

    Free Cash Flow  $6,241   $6,588  $6,991  $7,159   $7,462
                    ==========================================================

    % Growth over
     prior year         40%      50%     48%     38%      20%
                    ----------------------------------------------------------

    GAAP Net Income $4,444   $4,781  $5,088  $5,521   $5,758

    Free Cash Flow
     as a % of Net
     Income            140%     138%    137%    130%     130%

    (1) To supplement our statements of cash flows presented on a GAAP basis,
        we use non-GAAP measures of cash flows on a trailing 4-quarter basis
        to analyze cash flow generated from operations. We believe free cash
        flow is also useful as one of the bases for comparing our performance
        with our competitors. The presentation of non-GAAP free cash flow is
        not meant to be considered in isolation or as an alternative to net
        income as an indicator of our performance, or as an alternative to
        cash flows from operating activities as a measure of liquidity.
    (2) Represents capital expenditures as reported in cash flows from
        investing activities on our cash flow statements presented in
        accordance with GAAP.



                             ORACLE  CORPORATION
                       Q1 FISCAL 2009 FINANCIAL RESULTS
           SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
                               ($ in millions)

                                        Fiscal 2008
                        Q1         Q2           Q3           Q4       TOTAL
                     --------------------------------------------------------
    REVENUES
      New software
       licenses      $1,087     $1,668       $1,616       $3,144      $7,515
      Software
       license
       updates and
       product
       support        2,383      2,491        2,624        2,830      10,328
                     --------------------------------------------------------
        Software
         Revenues     3,470      4,159        4,240        5,974      17,843

      Consulting        801        877          843          957       3,477
      On Demand         158        167          174          194         694
      Education         100        110           92          114         416
                     --------------------------------------------------------
        Services
         Revenues     1,059      1,154        1,109        1,265       4,587

          Total
           Revenues  $4,529     $5,313       $5,349       $7,239     $22,430
                     ========================================================

    AS REPORTED
     REVENUE GROWTH
     RATES
      New software
       licenses          35%        38%          16%          27%         28%
      Software license
       updates and
       product support   23%        24%          25%          25%         24%
        Software
         Revenues        26%        29%          21%          26%         26%

      Consulting         25%        23%          21%          17%         21%
      On Demand          27%        20%          23%          29%         25%
      Education          24%        17%          16%           9%         16%
        Services
         Revenues        25%        22%          21%          18%         21%

          Total
           Revenues      26%        28%          21%          24%         25%

    CONSTANT CURRENCY
     GROWTH RATES
      New software
       licenses          32%        31%           9%          20%         21%
      Software license
       updates and
       product support   19%        18%          18%          18%         18%
        Software
         Revenues        23%        23%          15%          19%         19%

      Consulting         20%        15%          14%          11%         15%
      On Demand          23%        15%          17%          23%         19%
      Education          20%        10%           9%           2%         10%
        Services
         Revenues        21%        15%          14%          12%         15%

          Total
           Revenues      22%        21%          15%          18%         19%

    GEOGRAPHIC REVENUES

      REVENUES
        Americas     $2,375     $2,674       $2,707       $3,574     $11,330
        Europe,
         Middle East
         & Africa     1,530      1,865        1,871        2,679       7,945
        Asia Pacific    624        774          771          986       3,155
          Total
           Revenues  $4,529     $5,313       $5,349       $7,239     $22,430
                     ========================================================

    HEADCOUNT (2)

      GEOGRAPHIC AREA
        Americas     30,455     30,654       30,624       32,608
        Europe,
         Middle East
         & Africa    15,985     16,140       16,383       17,110
        Asia Pacific 31,212     32,855       33,212       34,515
                     -------------------------------------------
          Total
           Company   77,652     79,649       80,219       84,233
                     ===========================================



                                         Fiscal 2009
                     --------------------------------------------------------
                        Q1         Q2           Q3           Q4       TOTAL
                     --------------------------------------------------------
    REVENUES
      New software
       licenses      $1,237                                           $1,237
      Software
       license
       updates and
       product
       support        2,935                                            2,935
                     --------------------------------------------------------
        Software
         Revenues     4,172                                            4,172

      Consulting        865                                              865
      On Demand         195                                              195
      Education          99                                               99
                     --------------------------------------------------------
        Services
         Revenues     1,159                                            1,159
                     --------------------------------------------------------

          Total
           Revenues  $5,331                                           $5,331
                     ========================================================

    AS REPORTED
     REVENUE GROWTH
     RATES
      New software
       licenses          14%                                              14%
      Software license
       updates and
       product
       support           23%                                              23%
        Software
         Revenues        20%                                              20%

      Consulting          8%                                               8%
      On Demand          23%                                              23%
      Education         (2%)                                              (2%)
        Services
         Revenues         9%                                               9%

          Total
           Revenues      18%                                              18%

    CONSTANT CURRENCY
     GROWTH RATES
      New software
       licenses          10%                                              10%
      Software license
       updates and
       product
       support           18%                                              18%
        Software
         Revenues        16%                                              16%

      Consulting          5%                                               5%
      On Demand          19%                                              19%
      Education          (6%)                                             (6%)
        Services
         Revenues         6%                                               6%

          Total
           Revenues      14%                                              14%
                     --------------------------------------------------------


    GEOGRAPHIC REVENUES

      REVENUES
        Americas     $2,687                                           $2,687
        Europe,
         Middle East
         & Africa     1,830                                            1,830
        Asia Pacific    814                                              814
                     --------------------------------------------------------
          Total
           Revenues  $5,331                                           $5,331
                     ========================================================


    HEADCOUNT (2)

      GEOGRAPHIC AREA
        Americas     32,993                                           32,993
        Europe,
         Middle East
         & Africa    17,096                                           17,096
        Asia Pacific 35,099                                           35,099
                     --------------------------------------------------------
          Total
           Company   85,188                                           85,188
                     ========================================================

    (1) The sum of the quarterly financial information may vary from year-to-
        date financial information due to rounding.
    (2) Headcount has increased primarily due to our acquisitions.



                             ORACLE  CORPORATION
                       Q1 FISCAL 2009 FINANCIAL RESULTS
           SUPPLEMENTAL TOTAL SOFTWARE PRODUCT REVENUE ANALYSIS (1)
                               ($ in millions)

                                        Fiscal 2008
                     --------------------------------------------------------
                        Q1         Q2           Q3           Q4       TOTAL
                     --------------------------------------------------------
    APPLICATIONS
     REVENUES

     New software
      licenses         $376       $553         $451         $989      $2,369
     Software license
      updates and
      product support   886        929          974        1,044       3,833
                     --------------------------------------------------------
      Software
       Revenues      $1,262     $1,482       $1,425       $2,033      $6,202
                     ========================================================

    AS REPORTED
     GROWTH RATES
     New software
      licenses           65%        63%           7%          36%         38%
     Software license
      updates and
      product support    26%        28%          27%          25%         26%
      Software
       Revenues          36%        39%          20%          30%         31%

    CONSTANT CURRENCY
     GROWTH RATES
     New software
      licenses           61%        56%           2%          31%         33%
     Software license
      updates and
      product support    22%        21%          20%          19%         20%
      Software
       Revenues          32%        32%          14%          24%         25%

    DATABASE &
     MIDDLEWARE REVENUES

     New software
      licenses         $711     $1,115       $1,165       $2,155      $5,146
     Software license
      updates and
      product support 1,497      1,562        1,650        1,786       6,495
                     --------------------------------------------------------
      Software
       Revenues      $2,208     $2,677       $2,815       $3,941     $11,641
                     ========================================================

    AS REPORTED
     GROWTH RATES
     New software
      licenses           23%        29%          20%          23%         24%
     Software license
      updates and
      product support    21%        22%          23%          24%         23%
      Software
       Revenues          22%        25%          22%          23%         23%

    CONSTANT CURRENCY
     GROWTH RATES
     New software
      licenses           20%        22%          13%          15%         17%
     Software license
      updates and
      product support    17%        16%          17%          17%         17%
      Software
       Revenues          18%        18%          15%          16%         17%



                                         Fiscal 2009
                     --------------------------------------------------------
                        Q1         Q2           Q3           Q4         TOTAL
                     --------------------------------------------------------
    APPLICATIONS
     REVENUES

     New software
      licenses         $331                                             $331
     Software license
      updates and
      product support 1,043                                            1,043
                     --------------------------------------------------------
      Software
       Revenues      $1,374                                           $1,374
                     ========================================================

    AS REPORTED
     GROWTH RATES
     New software
      licenses          (12%)                                            (12%)
     Software license
      updates and
      product support    18%                                              18%
      Software
       Revenues           9%                                               9%

    CONSTANT CURRENCY
     GROWTH RATES
     New software
      licenses          (14%)                                            (14%)
     Software license
      updates and
      product support    13%                                              13%
      Software
       Revenues           5%                                               5%

    DATABASE &
     MIDDLEWARE REVENUES

     New software
      licenses         $906                                             $906
     Software license
      updates and
      product support 1,892                                            1,892
                     --------------------------------------------------------
      Software
       Revenues      $2,798                                           $2,798
                     ========================================================

    AS REPORTED
     GROWTH RATES
     New software
      licenses           27%                                              27%
     Software license
      updates and
      product support    26%                                              26%
      Software
       Revenues          27%                                              27%

    CONSTANT CURRENCY
     GROWTH RATES
     New software
      licenses           23%                                              23%
     Software license
      updates and
      product support    22%                                              22%
      Software
       Revenues          22%                                              22%

    (1) The sum of the quarterly financial information may vary from year-to-
        date financial information due to rounding.



                             ORACLE  CORPORATION
                       Q1 FISCAL 2009 FINANCIAL RESULTS
    SUPPLEMENTAL GEOGRAPHIC NEW SOFTWARE LICENSE REVENUE ANALYSIS (1) (2)
                               ($ in millions)

                                        Fiscal 2008
                     --------------------------------------------------------
                        Q1         Q2           Q3           Q4       TOTAL
                     --------------------------------------------------------

    AMERICAS

      Database &
       Middleware      $286       $438         $476         $919      $2,119
      Applications      199        306          252          552       1,310
                     --------------------------------------------------------
        New Software
         License
         Revenues      $485       $744         $728       $1,471      $3,429
                     ========================================================

    AS REPORTED
     GROWTH RATES
      Database &
       Middleware        23%        32%          24%          16%         22%
      Applications       58%        57%           1%          33%         33%
        New Software
         License
         Revenues        35%        41%          15%          22%         26%

    CONSTANT CURRENCY
     GROWTH RATES
      Database &
       Middleware        22%        29%          21%          13%         19%
      Applications       57%        54%         (1%)          32%         31%
        New Software
         License
         Revenues        34%        38%          12%          20%         23%


    EUROPE / MIDDLE
     EAST / AFRICA

      Database &
       Middleware      $253       $420         $446         $881      $2,000
      Applications      123        174          141          317         755
                     --------------------------------------------------------
        New Software
         License
         Revenues      $376       $594         $587       $1,198      $2,755
                     ========================================================

    AS REPORTED
     GROWTH RATES
      Database &
       Middleware        38%        23%          23%          42%         33%
      Applications       77%        72%          14%          41%         46%
        New Software
         License
         Revenues        49%        34%          21%          42%         36%

    CONSTANT CURRENCY
     GROWTH RATES
      Database &
       Middleware        30%        12%          11%          27%         20%
      Applications       69%        58%           6%          31%         35%
        New Software
         License
         Revenues        41%        23%          10%          28%         24%

    ASIA PACIFIC

      Database &
       Middleware      $155       $244         $231         $341        $971
      Applications       54         73           58          120         304
                     --------------------------------------------------------
        New Software
         License
         Revenues      $209       $317         $289         $461      $1,275
                     ========================================================

    AS REPORTED
     GROWTH RATES
      Database &
       Middleware         4%        32%           8%           6%         12%
      Applications       67%        66%          18%          37%         43%
        New Software
         License
         Revenues        15%        39%          10%          13%         18%

    CONSTANT CURRENCY
     GROWTH RATES
      Database &
       Middleware         1%        26%           0%          (1%)         5%
      Applications       60%        57%           5%          27%         33%
        New Software
         License
         Revenues        12%        32%           1%           5%         11%

    TOTAL COMPANY

      Database &
       Middleware      $694     $1,102       $1,153       $2,141      $5,090
      Applications      376        553          451          989       2,369
                     --------------------------------------------------------
        New Software
         License
         Revenues    $1,070     $1,655       $1,604       $3,130      $7,459
                     ========================================================

    AS REPORTED
     GROWTH RATES
      Database &
       Middleware        23%        28%          20%          23%         24%
      Applications       65%        63%           7%          36%         38%
        New Software
         License
         Revenues        35%        38%          16%          27%         28%

    CONSTANT CURRENCY
     GROWTH RATES
      Database &
       Middleware        19%        21%          12%          16%         17%
      Applications       61%        56%           2%          31%         33%
        New Software
         License
         Revenues        31%        31%           9%          20%         21%



                                         Fiscal 2009
                     --------------------------------------------------------
                        Q1         Q2           Q3           Q4       TOTAL
                     --------------------------------------------------------

    AMERICAS

      Database &
       Middleware      $342                                             $342
      Applications      182                                              182
                     --------------------------------------------------------
        New Software
         License
         Revenues      $524                                             $524
                     ========================================================

    AS REPORTED
     GROWTH RATES
      Database &
       Middleware        20%                                              20%
      Applications       (9%)                                             (9%)
        New Software
         License
         Revenues         8%                                               8%

    CONSTANT CURRENCY
     GROWTH RATES
      Database &
       Middleware        18%                                              18%
      Applications      (10%)                                            (10%)
        New Software
         License
         Revenues         7%                                               7%


    EUROPE / MIDDLE
     EAST / AFRICA

      Database &
       Middleware      $321                                             $321
      Applications       94                                               94
                     --------------------------------------------------------
        New Software
         License
         Revenues      $415                                             $415
                     ========================================================

    AS REPORTED
     GROWTH RATES
      Database &
       Middleware        27%                                              27%
      Applications     (23%)                                             (23%)
        New Software
         License
         Revenues        10%                                              10%

    CONSTANT CURRENCY
     GROWTH RATES
      Database &
       Middleware        19%                                              19%
      Applications      (26%)                                            (26%)
        New Software
         License
         Revenues         5%                                               5%


    ASIA PACIFIC

      Database &
       Middleware      $225                                             $225
      Applications       55                                               55
                     --------------------------------------------------------
        New Software
         License
         Revenues      $280                                             $280
                     ========================================================

    AS REPORTED
     GROWTH RATES
      Database &
       Middleware        46%                                              46%
      Applications        1%                                               1%
        New Software
         License
         Revenues        34%                                              34%

    CONSTANT CURRENCY
     GROWTH RATES
      Database &
       Middleware        39%                                              39%
      Applications       (1%)                                             (1%)
        New Software
         License
         Revenues        29%                                              29%


    TOTAL COMPANY

      Database &
       Middleware      $888                                             $888
      Applications      331                                              331
                     --------------------------------------------------------
        New Software
         License
         Revenues    $1,219                                           $1,219
                     ========================================================

    AS REPORTED
     GROWTH RATES
      Database &
       Middleware        28%                                              28%
      Applications      (12%)                                            (12%)
        New Software
         License
         Revenues        14%                                              14%

    CONSTANT CURRENCY
     GROWTH RATES
      Database &
       Middleware        23%                                              23%
      Applications      (14%)                                            (14%)
        New Software
         License
         Revenues        10%                                               10%

    (1) The sum of the quarterly financial information may vary from year-to-
        date financial information due to rounding.
    (2) New Software License Revenues presented exclude documentation and
        miscellaneous revenues.



                                                                    APPENDIX A

                              ORACLE CORPORATION
                       Q1 FISCAL 2009 FINANCIAL RESULTS
                       EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non- GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

0 Support deferred revenue: Business combination accounting rules require us to account for the fair value of support contracts assumed in connection with our acquisitions. Because these are typically one-year contracts, our GAAP revenues for the one year period subsequent to our acquisition of a business do not reflect the full amount of software license updates and product support revenues on assumed support contracts that would have otherwise been recorded by the acquired entity. The non-GAAP adjustment is intended to reflect the full amount of such revenues. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business because we have historically experienced high renewal rates on support contracts, although we cannot be certain that customers will renew these contracts.

0 Stock-based compensation expenses: We have excluded the effect of stock- based compensation expenses from our non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

0 Amortization of intangible assets expenses: We have excluded the effect of amortization of intangibles expenses from our non-GAAP operating expenses and net income measures. Amortization of intangible assets expenses is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to revenues earned during the periods presented and will contribute to future period revenues as well. Amortization expenses will recur in future periods.

0 Acquisition related and other expenses, and restructuring expenses: We incurred significant expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consist of in- process research and development expenses, personnel related costs for transitional employees, stock-based compensation expenses (in addition to the stock-based compensation expenses described above), integration related professional services, certain business combination contingency adjustments after the purchase price allocation period has ended, and certain other operating expenses, net. Substantially all of the stock-based compensation expenses included in acquisition related and other expenses resulted from unvested options assumed in acquisitions whose vesting was fully accelerated upon termination of the employees pursuant to the original terms of those options. Restructuring expenses consist of Oracle employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related expenses and restructuring expenses are not recurring with respect to past acquisitions, we generally will incur these expenses in connection with any future acquisitions.

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