FOR IMMEDIATE RELEASE 2000-5 Enforcement Action Brought Against Informix Corporation for Inflating Revenues by $295 Million and Earnings by $244 Million by Fraudulent and Other Means Washington, DC, January 11, 2000 -- The Securities and Exchange Commission today brought and settled an enforcement proceeding against Informix Corporation for fraudulently and otherwise improperly inflating revenues by $295 million and earnings by $244 million between 1994 and the first quarter of 1997. In its order, the Commission found that the company, through former employees, violated the antifraud provisions of the federal securities laws, as well as the reporting, books and records, and internal control provisions of the Securities Exchange Act of 1934. Informix consented to the issuance of the order without admitting or denying the Commission's findings. The Commission's investigation into this matter continues. The Commission also found that the company, through former employees, made materially false and misleading filings with the Commission during 1994 through 1996 and its first quarter of 1997. The Commission also found that the company's books and records during those periods were falsified and that the company failed to devise and maintain a sufficient system of internal accounting controls. In addition, the Commission found that as the fraud and other violative conduct was coming to light, former members of Informix management engaged in fraudulent conduct to avoid a restatement of the company's financial statements. After replacing its former management, the company and its auditors uncovered more than $100 million of accounting irregularities and restated its financial statements. Informix is a multinational database software company located in Menlo Park, California. Based on its findings, the Commission ordered Informix to cease and desist from committing or causing violations of various sections of the securities laws. The Commission also ordered the company to cooperate with the Commission's continuing investigation. # # #