IONA ANNOUNCES FIRST QUARTER RESULTS

Dublin, Ireland - April 17, 2002 - IONA®, the leading e-Business Platform provider for Web Services Integration (NASDAQ: IONA), today announced first quarter revenues of $39.5 million and a pro forma loss of $2.4 million, or $0.08 per share.

Pro forma losses exclude amortization of purchased intangible assets, as well as stock compensation and the associated tax effect. On a U.S. GAAP basis, after taking into account the foregoing items, IONA reported a loss per share of $0.23 for the first quarter of 2002. For full details regarding IONA's reported results, reference the financial tables at the end of this release.

"Our core integration and application server platforms showed continued strength in the first quarter, and the momentum for our Web Services Integration solutions increased as evidenced by key customer and partner wins," said Barry Morris, IONA's Chief Executive Officer. "Over the last 12 months, IONA has gained market share relative to the independent Enterprise Application Integration (EAI) vendors."

"We executed well in a tough environment and we strengthened our balance sheet with a successful follow-on offering," added Dan Demmer, IONA's Chief Financial Officer. "Our results this quarter demonstrate the strength of our strategy, our solutions and our customer base."

Looking forward, the company assumes a continued difficult economic environment for the software sector during the first half of 2002. The company therefore expects revenue for the second quarter of 2002 to be in the range of $40 - $43 million, and a pro forma loss per share in the range of $0.02 - $0.06.

Highlights from IONA's first quarter 2002 included:

  • Strengthened Balance Sheet - IONA successfully completed a follow-on offering, closing the quarter with $111 million in cash and marketable securities.
  • World's Leading Organizations Selected IONA's Orbix E2A
    • Winterthur Chose IONA's Web Services Integration Platform - Winterthur, one of the largest insurance companies in the world and a long-time user of IONA's Application Server Platform and mainframe integration technologies, expanded their use of those products and standardized on IONA's Orbix E2A Web Services Integration Platform.
    • Compaq NSD Selected IONA's Application Server Platform - Compaq Non-Stop Division selected IONA's Application Server Platform as the standard for high-end, mission-critical applications running on the Compaq Non-Stop platform.
    • IONA Delivered Orbix E2A to Global 2000 - Organizations including Alcatel, Business Objects, CIBC Worldwide Markets, Ericsson, Lehman Brothers, Lexis-Nexis, Manugistics, MetaSolv, Telefonica, and Telstra entered into new or expanded license agreements with IONA in the first quarter.
  • IONA Signed Key Partnerships During the First Quarter of 2002
    • Compaq Global Services Established Integration Practice Using Orbix E2A - Compaq Global Services announced a Global Consulting Practice to provide next-generation Web services collaboration and integration to customers worldwide based on Orbix E2A.
    • IONA and HP Partnered to Deliver Orbix E2A on HP-UX - IONA and HP established an alliance to create new business through combined hardware, software, and services offerings. In addition, the companies agreed to optimize product performance on HP platforms.
    • IONA Signed KPMG Consulting and CSC to Alliance Program - IONA is now working with more than 20 of the world's leading systems integrators, including KPMG Consulting, CSC, PwC Consulting, SAIC, Ciber, Tata Infotech, and Toshiba.
  • IONA Received Major Industry Awards for Web Services Integration Products
    • Orbix E2A Wins eWeek eXcellence Award -- eWEEK analysts and corporate partners selected IONA's Orbix E2A as the leading Web Services Integration Platform.
    • Orbix E2A Awarded "World Class" Product Seal -- Web Services Journal magazine awarded Orbix E2A Web Services Integration Platform its "World Class Product" Award, noting several innovative features and citing it as "a leading contender in the family of Web Service Integration platforms."
    • Orbix E2A Selected as "Best of Show" -- Attendees at the XML & Web Services 2002 conference in London chose Orbix E2A Web Services Integration Platform as the "Best Overall Solution based on XML."
  • IONA Introduced Industry's First Web Services Security Framework - One of the most significant obstacles to the adoption of Web services has been the need for security. IONA's Security Services framework allows Web services developers to easily tie into existing security systems, without resorting to proprietary or non-standard approaches.
  • IONA Extended Product Leadership - IONA announced enhancements to the Orbix E2A product line extending its leadership in usability, enterprise features and support for the latest Web services standards.

IONA will host a conference call to discuss the company's first quarter 2002 results on Wednesday, April 17, 2002 at 10:00 am Eastern Daylight Time. Investors and other interested parties may dial into the call using the toll free number (800) 450-5192 in the United States or (706) 634-0918 for International callers.

This call is being Webcast by CCBN and can be accessed through the Investor Relations section of IONA's Web site at www.iona.com. Following the conclusion of the call, a rebroadcast will be available at IONA's Website or by calling (800) 642-1687 in the U.S. or (706) 645-9291 outside the U.S., with reservation number 3769490 until April 24, 2002.

About IONA
IONA is the leading e-Business Platform provider for Web Services Integration with more than 4,500 customers worldwide. IONA Orbix E2A™, which consists of the award-winning Orbix E2A Web Services Integration Platform and Orbix E2A Application Server Platform, enables the flow of information across disparate systems and the liberation of application assets for new business opportunities.

Founded in 1991, IONA® (NASDAQ: IONA) is headquartered in Dublin, Ireland, with U.S. headquarters in Waltham, Massachusetts. The company had revenues of $181 million in 2001 and employs approximately 900 people in more than 30 offices worldwide. For additional information about IONA, visit our Web site at http://www.iona.com.

Click Here to view financial tables

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning plans and objectives of management, expectations regarding future financial performance and market positioning, growth, demand and opportunity. The forward-looking statements made are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated or indicated, including risks and uncertainties relating to the integration of recent and future acquisitions; IONA's Orbix End 2 Anywhere strategy; IONA's enterprise sales model; volume, timing and seasonal patterns of product sales; impact of competitive products and pricing; development and market acceptance of new and improved products; undetected errors in software; and general economic conditions. For a more detailed discussion of the risks and uncertainties, please refer to our periodic reports and registration statements filed with the Securities and Exchange Commission.

IONA, IONA Technologies, the IONA logo, Orbix, E2A, End 2 Anywhere, End To Anywhere, Orbix E2A, IONA E2A, IONA e-Business Platform, iPortal Application Server, SureTrack, IONA XMLBus, Adaptive Runtime Technology, Orbacus, Orbix/E, IONA University and Total Business Integration are trademarks or registered trademarks of IONA Technologies PLC and/or its subsidiaries. All other trademarks that may appear herein are the property of their respective owners.

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