On October 24, 2007 Oracle announced its plans to acquire Interlace Systems, a provider of strategic operational planning software. The combination of Interlace Systems’ technology and Oracle’s Enterprise Performance Management (EPM) System is expected to enable fast and collaborative decision making by integrating functional operational and financial planning systems. The combination is subject to customary conditions and is expected to close by November, 2007. Until the acquisition closes, each company will continue to operate independently in the ordinary course.

A key part of the EPM segment, Interlace Systems software helps organizations, quickly and collaboratively, combine functional processes to address strategic operational planning needs. Its software uses a change-based data modeling server, connecting operational plans in an integrated model and allowing business planners across functions to rapidly change operational assumptions, reevaluate scenarios, assess business impact and update the plan of record. After the closing, the combination of Interlace Systems’ technology and Oracle’s leading EPM System is expected to provide a common perspective across financial and operational planning through an integrated business planning framework.

Interlace Systems’ advanced strategic operational planning is expected to complement Oracle’s leading financial planning and budgeting capabilities in Oracle’s Hyperion Planning, as well as the planning capabilities in Oracle’s Supply Chain Management and Customer Relationship Management suites.

After the closing, Oracle and Interlace Systems partners will be able to work with a single vendor to address customer needs for all varieties of planning solutions that make up a comprehensive EPM system. Oracle partners, especially those with experience in Oracle/Hyperion EPM deployments, are expected to benefit from Interlace Systems solutions for strategic operational planning problems that complement the planning capabilities within Oracle’s EPM solution. Interlace Systems partners are expected to benefit from Oracle’s increased support and investment in Interlace Systems and Oracle EPM products. Both companies’ partners are expected to benefit from the complementary solutions that provide an opportunity to increase the effectiveness of EPM solutions in managing the decision-making process within an enterprise.

We are excited about this acquisition and how we expect it to add a critical and new dimension to Integrated Business Planning capabilities within our EPM system. To learn more about the combination of Interlace Systems and Oracle, please visit oracle.com/interlacesystems.

We appreciate your continued support.

The above is for informational purposes only and may not be incorporated into a contract.