Embarcadero Technologies Announces Preliminary Third Quarter
Results
San Francisco, Calif, October 03, 2001 - Embarcadero Technologies, Inc. (Nasdaq: EMBT), a leading provider of application and database lifecycle management solutions, today announced preliminary estimated financial results for the third quarter ended September 30, 2001. Embarcadero expects to report revenue in the range of $10.8-$11.1 million, in line with revised analysts’ estimates, and pro-forma earnings per share in the range of $0.01-$0.02.

"We expected that the third quarter would be challenging given the slowing economic conditions around the world," said Embarcadero CEO, Stephen Wong. "The tragedy of September 11th has affected people and businesses everywhere. Not surprisingly, these terrible events have disrupted the flow of business, making it very difficult for our company to close pending orders by quarter-end. While no one can gauge the ultimate impact of recent events on the economy, we feel that a high percentage of delayed deals remain intact and can be closed in the next few months. Meanwhile, the Company continues to generate positive operating cash flow and pro- forma net income."

Embarcadero also announced that its Board of Directors has authorized increasing the Company’s stock repurchase program to an aggregate of $10 million of its Common Stock. The program authorizes the Company to make repurchases from time to time in the open market and in negotiated transactions, including block transactions, depending on market conditions and other factors. The stock repurchase program may be discontinued at any time.

Embarcadero will discuss its preliminary financial results for the third quarter on a conference call and simultaneous Web cast to be held today, October 3, 2001 at 2:30 PM PDT. The Web cast of the conference call will be available to all interested parties on Embarcadero’s Web site under "Investor Relations" at www.embarcadero.com.

Final third quarter results will be announced on Monday, October 15, 2001 after the close of market. The final results will be discussed on a conference call and simultaneous Web cast to be held at 2:00 PM PDT that same day. A Web cast of the conference call will be available to all interested parties on Embarcadero’s Web site under "Investor Relations" at www.embarcadero.com.
About Embarcadero Technologies
Embarcadero Technologies, Inc. (Nasdaq: EMBT), is a leading provider of software solutions that enable organizations to build, optimize and manage databases and applications supporting today’s critical enterprise systems. Thousands of customers, including 90 of the Fortune 100, use Embarcadero products to design, develop and administer their mission-critical database applications. Embarcadero Technologies, ranked in the top 20 of the 2001 Forbes ASAP Dynamic 100, is headquartered in San Francisco, Calif. For more information, call 415/834-3131.

Forward Looking Statements
The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties, including risks associated with fluctuations in quarterly results, the development of products, technological changes, competition, uncertainty relating to patent and proprietary rights, and other risks identified in the Company’s periodic filings with the Securities and Exchange Commission including, but not limited to, those appearing under the caption "Risk Factors" in the Company’s most recent Quarterly Reports on Form 10-Q and the Annual Report on Form 10-K. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue relevance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated events.

Embarcadero, the Embarcadero Technologies logos and all other Embarcadero Technologies product or service names are trademarks of Embarcadero Technologies, Inc. All other trademarks are property of their respective owners.