Oracle Forms Network Computer, Inc.

Subsidiary Will Develop and License Software for the NC (TM)

to Makers of Low-Cost, Easy-to-Use Network Computers

SAN FRANCISCO, May 20, 1996--Oracle Corp. today announced the formation of Network Computer, Inc., a wholly owned subsidiary of Oracle that will provide software for a new generation of low-cost, easy-to-use internet and intranet appliances, called the NC.

The new company will be strategically linked to Oracle. It will develop, license and market all necessary software and support services for the NC, including the newly announced Oracle NC System Software Suite and other NC applications. Dr. Jerry Baker, formerly senior vice president of Oracle's Product and Platform Technologies Division, will head the company as its president. A successor to Dr. Baker at Oracle will be named shortly.

"We are responding to a unique opportunity. The market for NC software and internet applications is explosive," said Lawrence J. Ellison, CEO and chairman of Oracle Corp. "The formation of Network Computer, Inc. allows us to focus our resources on this dynamic segment."

Oracle's new subsidiary will be responsible for managing all Oracle resources targeted at the NC market. The new company will not manufacture NCs or distribute hardware products. The company's employee base and management team, as well as its product family, development and marketing efforts will be detailed as it organizes. The company, which commences operations today, will be based in Redwood Shores, Calif.

Primary customers of Network Computer, Inc. will be consumer electronic and computer system manufacturers who are targeting new markets for highly simplified internet devices. These customers are expected to build many different types of NCs, including screen phones, set-top boxes, televisions, game machines, portable computers and desktop computers.

"The demand for inexpensive, easy-to-use computers is skyrocketing," said Jerry Baker, newly-named president of the Oracle subsidiary. "Consumers, schools, businesses and governments see the vast potential of the internet."

Dr. Baker joined Oracle in November of 1984 and is credited with starting Oracle's highly successful UNIX Products Division. His organization is responsible for the development and marketing of Oracle products for major system manufacturers, including Apple, AT&T, DEC, HP, IBM, Microsoft, Novell and Sun. During his tenure at Oracle, Dr. Baker spearheaded the development of server and gateway products ranging from massively parallel to desktop systems.

Oracle Corporation is the world's largest supplier of software for information management, and the world's second largest software company. With annual revenues of more than $3.5 billion, the company offers its database, tools and application products along with related consulting, education and support services, in more than 90 countries around the world.

For more information about Oracle, please contact Oracle's headquarters at (415) 506-7000. Oracle's World Wide Web address is (URL) http://www.oracle.com.

Oracle is a registered trademark of Oracle Corporation. Network Computer, NC, Oracle NCOS and Oracle System Software Suite are trademarks of Oracle Corporation. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

Contact: Randy Brasche, Network Computer Inc. (415) 506-3074

Photos are available upon request.