35-35       90 St.

New York, N.Y.  10008

Business Description:

Computer Alliance International, Inc was incorporated in Texas in 1985.  Computer Alliance (CA) is the world's #3 independent software company after Microsoft and Oracle.  CA's global business is principally in a single industry segment, which is the design, development, marketing, licensing and support of integrated computer software products operating on diverse range of hardware platforms and operating systems.  CA offers over 500-enterprise systems management, information management and business management software products for use on a variety of hardware platforms. Because of its independence from hardware manufacturers, CA has been able to offer products for use on most of the existing major computer operating systems. 

Company History:

CA designs, develops, markets, licenses, and supports standardized computer software products for use with a broad range of desktop, midrange, and mainframe computers from many different hardware manufacturers including, among others, IBM, Hewlett-Packard Company (HP), Sun Microsystems Inc., Data General Corp. (DG), and Compaq Computer Corporation (including the Digital Equipment and Tandem Computer Companies).  CA supplies an array of enterprise management, information management and business application software products.  Revenues for the fiscal year ended March 31, 1998 was $4.7 billion, compared with $4.04 billion for the fiscal year of 1997.

CA distributes, markets, and supports its products on a worldwide basis with its own employees and a network of independent value-added resellers, distributors, and dealers.  The Company also operates through subsidiaries located in 42 countries outside North America.  Each of these subsidiaries is structured as an autonomous entity, and markets all or most of the Company's products in its respective territory.

During fiscal 1999, the Company formed a professional services organization known as Global Professional Services (GPS) to expand the Company's offerings on behalf of clients and partners around the world.  GPS offers a broad spectrum of services ranging from consulting to implementation to comprehensive outsourcing and custom developing leading edge IT solutions.  The Company also acquired a number of professional service companies during the fiscal year, including Computer Management Sciences, Inc., Realogic, Inc., and LDA Systems, Inc., which strengthened GPS.     

During fiscal year 1998, the Company commenced full-scale delivery of JasmineTM.  Jasmine is a true object database with an integrated development environment and a robust multi-platform deployment facility. Its object-oriented database engine provides the foundation to store, manage, and maintain multimedia and business objects.

Unicenter TNG is an object-oriented solution that enables organizations to visualize and control their entire information technology infra-structure including applications, databases, systems and networks from business perspective. This technology establishes a link between an organizations information technology resources and its business policies.  Through Unicenter TNG, an organization can define its business policies

map these policies to particular resource management requirements, and then monitor resources for their support of specific business processes.

Operation Process:

How Computer Alliance manages its operations to effectively deliver its products and services to customers.   Customers are other businesses, not the eventually end-users.  In order for this company to be

successful, management must determine the correct process flow, the proper service quality, and recognize the challenges that are inherent in a very labor intensive and close customer relationship environment.  From an investor's perspective, a company must manage its operations well in order to succeed in a competitive industry and thus give a satisfactory return on investment.

Each business customer has its distinct system, needs, and resources.  Therefore, Computer Alliance must customizes its software and service to satisfy its customers ' requirements.  The evidence is reflected in the large number of software products offered.  CA designs and supports the systems it develops for each customer. 

There is a high degree of both labor intensity (i.e. sales, software engineers, programmers, technicians, etc.) and consumer contact/interaction.  The challenges for management pertaining to the workforce will be proper hiring, training, methods of development and control, employee welfare, scheduling workforces, control of often geographically spread locations, start-up of new units, managing growth.  The challenges pertaining to the high customer contact/interaction are cost increases, maintaining quality, reacting to customer intervention in process, managing advancement of people delivering service, and managing relatively flat hierarchy with loose subordinate-superior relationships.  A firm cannot be profitable in a competitive industry without addressing these factors.

Competition:

Computer Alliance International, Inc. (CA) supplies systems management, information management and business management software products for use on a variety of hardware platforms.  Because of its

independence from hardware manufacturers, the Company has been able to offer products for use on most of the existing major computer operating systems.  The Company offers over 500 products, many of which

provide tools to measure and improve computer hardware and software performance and programmer productivity.  The Company's solutions help clients use the latest technologies while preserving their substantial investment in hardware, software and staff expertise. 

Built upon a common infrastructure, these products provide solutions across multiple operating systems and hardware platforms.  The Company's standardized business software products enable clients to use their total data processing resources hardware, software, and personnel more efficiently.  The Company provides products that effectively manage the complex, heterogeneous systems upon which businesses depend.   By employing a common infrastructure, the Company's developers create modular software designed to be continually and consistently improved.  This pragmatic approach protects client's investments by using scalar, evolutionary change rather than revolutionary disruption and waste. 

Also it enables clients to modernize legacy applications without mounting expensive full-scale development efforts. And provides access to mainframe legacy applications as well as other information sources through an advanced graphical user interface, employing multimedia, animation, sound, and video.

Management Team

Aden Victory
Chairman and Chief Executive Officer
Computer Alliance International, Inc.
 
James Bush

President

Computer Alliance International, Inc.

Consolidated Statements of Operations

Consolidated Statements of Cash Flows

Consolidated Balance Sheets