Oracle Press Release

Oracle Asia Pacific & Japan FY06 Total Revenues Cross US$2 Billion

SINGAPORE   July 04, 2006 08:24 AM   

News Facts

Oracle today announced significant customer traction and revenue growth in the Asia Pacific & Japan region, bringing in more than US$2 billion in total revenues in its Fiscal Year 2006.

For full fiscal year 06 (ended May 31, 2006), Oracle Asia Pacific & Japan (JAPAC) reported total revenues of US$2.02billion - an 18% increase from FY05. Applications new license revenues in JAPAC grew 69% while database and middleware new license revenues grew 13%, for the full year over FY05. JAPAC accounted for about 14% of total revenues worldwide and 19% of total new license revenues worldwide.

For Q4FY06, Oracle Asia Pacific & Japan reported total revenues of US$684 million, a 27% increase from Q4FY05. Applications new license revenues in JAPAC grew 94% while database and middleware new license revenues grew 31%, compared with Q4FY05, its strongest quarter growth in the last two years. JAPAC accounted for about 14% of total Q4 revenues worldwide and 18% of total Q4FY06 new license revenues worldwide. (All figures in USD and on GAAP basis.)

"FY06 was a record year for Oracle Asia Pacific and Japan," said Derek Williams, Chairman & Executive Vice President, Oracle Asia Pacific & Japan. "In Q4FY06, we delivered significant revenue growth across virtually all product lines and geographies. We are growing faster than the competition and rapidly winning market share. "Clearly, we are giving our customers what they want: open, flexible and standards-based software that drive business agility, insights and, ultimately -- growth and stockholder value," Williams added.

Oracle Database Out-Paces and Out-Sells Competitors in Asia Pacific Oracle continued to lead the relational database management system (RDBMS) market in both market share and growth in Asia Pacific, excluding Japan. According to IDC's 2H 2005 Database Management Tracker 1, Oracle's license and maintenance revenues had 47% of APAC's RDBMS software market in the calendar year 2005, almost double the market share of its nearest competitor. In the same study, IDC found Oracle's RDBMS license and maintenance revenues grew at 17% year-on-year, almost double the growth of its nearest competitor. Leading organizations across Asia Pacific who have adopted or expanded implementations of Oracle Database in Q4FY06 include:

* ASEAN: Banco de Oro (Philippines), Nanyang Technological University (Singapore), Parkway Group Healthcare Pte Ltd (Singapore), Robinsons Savings Bank (Philippines), Toshiba Information Equipment, Inc. (Philippines)
* Greater China: Beijing Capital International Airport, China Mobile, China National Petroleum Corporation, China Shipbuilding Industrial Corp., CITIC 21CN, Heilongjiang Netcom, Jilin Netcom, Shandong Netcom.
* India: ABN Amro Bank N.V., Central Board of Excise & Customs, Centurion Bank of Punjab Limited, Cipla Limited, Department of Income Tax, Gujarat Alkalies and Chemicals Limited, ICICI Prudential Life Insurance Company Ltd., M/S Gujarat Ambuja Cements Limited, Relene Petrochemicals Pvt Ltd., Stock Holding Corporation of India Limited, Tata Motors Limited. * Korea: Busan Bank (Korea), Citibank Korea Inc., Hanjin Shipping Co. Ltd., Hyundai Capital, Kookmin Bank, Korea Federation Of Banks, Shinhan Bank, The Korea Development Bank.

Oracle's database technologies have evolved over the last 30 years into four major products, developed to fit organizations of all sizes, needs and requirements. Ranging from free to enterprise-class, Oracle Database 10g versions include: Oracle Database 10g Express Edition, Oracle Database 10g Standard Edition One, Oracle Database 10g Standard Edition, and Oracle Database 10g Enterprise Edition. Oracle Database 10g is the first database designed for grid computing, allowing any organization to adopt Oracle grid technology with minimal investment, zero disruption, and fast return on investment.

Momentum Builds for Oracle Fusion Middleware in Asia Pacific

Oracle's global middleware new license revenues grew 57% year-on-year in Q4FY06. Underpinning Oracle's middleware strategy is Oracle Fusion Middleware, a comprehensive, standards-based family of middleware products to adopt and manage service-oriented architectures (SOA) in heterogeneous computing environments.

According to a recent Gartner report, "SOA will provide the basis for 80 percent of development projects, by 2008."2 Central Board of Excise & Customs (India), Department of Income Tax (India), GuangDong Telecom (China), Hanjin Shipping Co. Ltd. (Korea), Harris Scarfe (Australia), Orient Overseas Container Line (HK), and YCH Group (Singapore) are a few of the growing number of organizations in Asia Pacific (excluding Japan) using components of the Oracle SOA Suite, part of the Oracle Fusion Middleware product family, to help maximize business efficiency, increase IT flexibility and lower costs.

Other Fusion Middleware new wins in Q4FY06 for Asia Pacific, excluding Japan, include: Bombay Dyeing & Manufacturing Co Ltd, Cathay United Bank (Taiwan), Central Restaurants Group Co Ltd. (Thailand), CITIC 21CN (China), M/S Gujarat Ambuja Cements Limited (India), NSW Dept of Education & Training (Australia), Parkway Group Healthcare Pte Ltd. (Singapore), Robinsons Savings Bank (Philippines), Shanghai Research Center for Biology Information Technology (China), Siam Pharmaceutical Co., Ltd. (Thailand), Stock Holding Corporation of India Limited , Toshiba Information Equipment, Inc. (Philippines), Vatana Phaisal Engineering Co., Ltd. (Thailand).

Oracle grows Applications & Industries Mindshare and Market Share across Asia Pacific

Oracle continues to gain mindshare and market share across every enterprise applications software market in Asia Pacific. Oracle has propelled into the number one position in Customer Relationship Management (CRM) applications globally with the completion of its Siebel acquisition in FY06. In Asia Pacific, according to a leading analyst firm, Oracle is number one in CRM with 17% marketshare.

Today, more than 4,800 customers rely on Oracle Applications across Asia Pacific, excluding Japan. Oracle Applications, including the Oracle E-Business Suite, PeopleSoft Enterprise, JD Edwards EnterpriseOne, JD Edwards World and Siebel, continue to see widespread adoption as customers seek information-driven business processes that help drive an adaptive and responsive enterprise. Developed to deliver business insight, adaptive industry processes and a superior ownership experience, Oracle Applications enable efficient management of all core business functions, such as customer interactions, financial management, human resources and supply chain management.

Oracle continues to grow its presence in key high-growth industries in Asia Pacific, including Financial Services; Communications, Media & Utilities; Government, Education & Healthcare; and Manufacturing, Retail & Distribution. Backed by a series of strategic acquisitions, Oracle's expanded portfolio of solutions provide companies in Asia Pacific with the widest choice of fully integrated industry solutions with deep industry functionality that are built on open standards. Oracle is uniquely able to develop and integrate its Applications, Middleware and Database components, to build more effective suites of software that meet the diverse needs of customers in different industries.

Customers in key industries across Asia Pacific that adopted or expanded implementations of Oracle Applications to integrate and automate their business systems, increase business insight, efficiencies and performance, and lower costs in Q4 and FY06 include:

* Communications, Utilities, Media & Entertainment: Avtec Limited (India), China Netcom (China), DiGi Telecommunications (Malaysia), DTAC (Thailand), Maxis Communications (Malaysia), Oil & Gas Development Company Limited (SAGE), Petronas (Malaysia), Sony Ericsson (China), Telekom Malaysia, Star Publications (Malaysia), TVSN ChinaWesfarmers Energy (Australia), Orion Health (NZ), Warid Telecom (Pakistan).
* Government, Education & Healthcare: International Islamic University Malaysia (IIUM), Malaysian Center for Remote Sensing, Ministry of Health (Malaysia), National Audit Department (Malaysia), National Library Board (Malaysia), Parkway Group Healthcare Pte Ltd (Singapore), Reliance Life Sciences Pvt. Ltd. (India), Siam Pharmaceutical Co., Ltd. (Thailand), University of Technology, Sydney (Australia).
* Banking, Securities & Insurance: AM Bank Bhd. (Malaysia), Bank of India, Bank of Maharashtra (India), BCB (Malaysia), Cathay United Bank (Taiwan), China Development Bank, Construction Bank of China, E-Sun Bank (Taiwan), Huaxia Bank (China), Hyundai Capital (Korea), KBank (Thailand), Maybank (Malaysia), Pingan Insurance (China), Reserve Bank of India, Shinhan Bank (Korea), Takaful Nasional (Malaysia).
* High Technology, Manufacturing & Automotive: Aditya Birla Management Corporation Ltd (India), Aerosun Corporation (China), BenQ (China), Berger Paints India Ltd. (India), Chang'an Group/Jiangling Motor (China), Dynacraft Industries (Malaysia), First Auto Works Group (China), HangXiao Steel Construction (China), Hindustan Paper Corporation Limited (India), KKB Engineering (Malaysia), Lippo Karawaci (Indonesia), LKT Industrial Sdn Bhd (Malaysia), Matsushita Electric (China) Co., Ltd., Tbk, PT. (Indonesia), Penfabric Sdn Bhd (Malaysia), Pitti Laminations (India), Reliance Weaving Mills Limited (SAGE), Shanghai Electric (China), Tbk (Indonesia), Vatana Phaisal Engineering Co., Ltd. (Thailand), Wuyang Iron & Steel (China).
* Logistics, Travel & Transportation: Auckland International Airport Limited (NZ), China Eastern Airlines, Century Total Logistics Sdn Bhd (Malaysia), Hanjin Shipping Co.Ltd. (Korea), India Pistons Limited, JSW Steel Ltd (India), Port of Tanjung Pelepas (Malaysia). * Consumer Goods: Central Restaurants Group Co Ltd. (Thailand), PT Hanjaya Manndala Samoerna (Indonesia).
* Retail: Central Retail Corporation Limited (Thailand), C&U Group (China), PT. Matahari Putra Prima Tbk (Indonesia), Warehouse Stationery Limited (NZ).

Oracle also continued to gain ground as more than 250 companies in Asia Pacific selected Oracle Applications over SAP in FY06. These include organisations of all sizes across key industries and markets in the Asia Pacific region, such as: Anex Electrical Company Limited (Hong Kong), Busan Port Authority (Korea), China Development Bank, DTAC (Thailand), Gardenia Bakeries Philippines, Inc., GT Petrochem (Indonesia), Hangxiao Steel Construction (China), Malaysia Airlines, Maruti Udyog Limited (India), and McGuigan Simeon Wines (Australia).

The Oracle Economy in Asia Pacific Expands in FY06

Oracle continued to invest in key business initiatives that deliver long-term customer value and business growth across Asia Pacific - these included:

* Expansions into 33 non-metro cities across China and India to capture new market opportunities, promote growth in the local economies and accelerate development of the local software industry.
* Broader partner base with an addition of 490 new partners during FY06, totaling 2,120 across the Asia Pacific region, excluding Japan.
* Increased customer support in Asia Pacific with the establishment of an Oracle Global Support Center in Dalian, a Northeastern city in China. As one of 18 Oracle Global Support Centers worldwide, the Dalian facility will serve as a multi-lingual service desk to provide local-language technical assistance to Oracle customers in mainland China, Korea, and Japan.
* Giving back to the communities in Asia Pacific with more than US$630 million worth of software donations across the region, including Japan, in FY06. As part of its corporate citizenship efforts, Oracle Education Initiatives has given some 490,000 students access to Oracle technology.
* Industry Recognition for Oracle, receiving 49 awards and accolades in Asia Pacific, excluding Japan, for FY06 recognising Oracle's product and market leadership, as well as contributions as a corporate citizen and business partner.

About Oracle

Oracle (NASDAQ: ORCL) is the world's largest enterprise software company. For more information about Oracle, please visit our Web site at http://www.oracle.com

Trademarks

Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.
1 SOURCE: IDC, 2H 2005 Database Management Tracker, license and maintenance revenues, Asia Pacific, excluding Japan. APAC refers to the following countries: Australia, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand,Philippines, PRC, Singapore, Taiwan and Thailand.
2 Gartner's Positions on the Five Hottest IT Topics and Trends in 2005, 12 May 2005, David W.Cearley, Jackie Fenn, Daryl C. Plummer

Contact Info

Ada Fong
Oracle Asia Pacific
+1.650.506.8831
ada.fong@oracle.com

Cho Chi Hea
Oracle Asia Pacific
+1.650.506.8831
chi.hea.cho@oracle.com