On October 8, 2008, Oracle announced it has entered into an agreement to acquire Primavera, a leading provider of Project Portfolio Management (PPM) solutions for project-intensive industries. The combination of Oracle and Primavera’s capabilities is expected to deliver the first, comprehensive Enterprise PPM solution. The transaction is subject to customary closing conditions and is expected to close in the second half of 2008. Until the deal closes, each company will continue to operate independently.

Primavera is a recognized leading choice for mission critical PPM solutions and helps more than 5,000 global customers and over 2.5 million users propose, prioritize, select, plan, manage, and control complex projects. Primavera offers solutions for industries that are a critical focus for Oracle including engineering and construction, public sector, aerospace and defense, utilities, oil and gas, manufacturing and high tech, and services and IT.

Primavera’s products are complementary to Oracle’s leading applications, middleware, and database offerings, and together we plan to deliver the first, comprehensive Enterprise Project Portfolio Management solution for project-intensive industries, all from a single, global vendor. Oracle intends to support and develop standards and functional integrations to Oracle and non-Oracle enterprise applications to ensure all customers receive maximum benefit from this combination.

Oracle is well positioned and committed to support Enterprise PPM customers. Effective project portfolio management integrated with financial, human capital management, product lifecycle management, supply chain applications, and infrastructure software removes the silos that separate traditional PPM from other key enterprises, and is critical to accelerating business innovation, enabling efficient project execution, driving project profitability, and reducing risk for large complex and capital-intensive projects.

Primavera’s management and employees are expected to join Oracle to form a dedicated global business unit focused on Enterprise PPM solutions ensuring continuity of customer and partner relationships. Primavera’s CEO Joel Koppelman is expected to lead this unit.

After the close of the transaction, Oracle partners are expected to benefit from working with a single vendor to address customer needs for comprehensive Enterprise PPM solutions, as well as Oracle’s worldwide resources and partner ecosystem. System Integrators are expected to have the opportunity to provide world-class solutions to customers through an expanded application footprint. Independent Software Vendors are expected to benefit from the opportunity to leverage the combined, broader footprint.

We are dedicated to delivering solutions that address your customers’ enterprise PPM software requirements. Please join us on Tuesday, October 14, 2008 at 8am (PT) for a customer and partner conference call to learn more about the proposed combination. For details on the call and other information, please visit oracle.com/primavera.

We appreciate your continued support.

Sincerely,
 
Charles Phillips
President

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