IONA ANNOUNCES SECOND QUARTER RESULTS

Dublin, Ireland - July 16, 2003 - IONA®, the leading provider of High Performance Integration? for mission critical systems (NASDAQ: IONA), today announced second quarter revenues of $16.4 million and a net loss per share of ($0.77) as calculated in accordance with U.S. generally accepted accounting principles (GAAP).

The pro forma net loss per share for the second quarter was ($0.24). Pro forma net loss per share excludes amortization of other non-current assets, restructuring, write-off of assets and related costs, and stock-based compensation expense, representing $0.53 per share.

IONA reported a one-time restructuring charge of $14.8 million in the second quarter ended June 30, 2003 for consolidation of excess facilities, reduction of workforce, and other cost reduction activities. In addition, assets related to the restructuring activities were written off in the second quarter ended June 30, 2003 resulting in a non-cash charge of $2.3 million. The company's cash and marketable securities balance at quarter end was $59.3 million.

In addition, during the second quarter IONA made several significant management changes. Chris Horn returned to the role of chief executive officer, a position he held from the company's founding until 2000, and IONA Board of Directors member Kevin Melia was appointed Chairman of the Board.

"We took necessary actions in the second quarter to bring the organization in line with the challenges and opportunities in today's marketplace. I feel we have the organization we need to help our customers address the high performance integration problems that surround their mission-critical systems," said Chris Horn, IONA CEO and co-founder. "It was this customer-driven approach that made us the world's leading CORBA vendor, and this focus on customer success will continue to drive our product design and delivery. As demonstration of this resolve, we shipped Artix version 1.0, an important new product for IONA, in Q2."

Artix is the latest IONA integration product. It is designed to address complex middleware integration problems using Web services technology. It helps organizations make their disparate, often proprietary, infrastructure investments interoperate, without affecting the performance, reliability or availability of the mission-critical systems that depend on these infrastructure platforms.

"The second-quarter of 2003 was a time of transition for IONA, during which we narrowed our focus in an effort to return to our core strengths," said Dan Demmer, CFO at IONA. "While the economic climate and enterprise software market remain uncertain, I am confident in our ability to manage our cost structure, deliver valuable products, and return to profitability."

Looking Forward
The company expects revenue for the third quarter of 2003 to be within ten percent of the reported Q2 2003 revenue. Total U.S. GAAP expenses, including both cost of revenue and total operating expenses, are expected to be approximately $20 million.

Conference Call
IONA will host a conference call today at 10:00 a.m. Eastern Standard Time to discuss the company's second quarter results. Investors and other interested parties may dial into the call using the toll free number (800) 728-2678 in the United States or (706) 634-6681 for callers outside the United States. The conference call will also be available via webcast on the Investor Relations section of IONA's website 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 passcode 1620364 until July 23, 2003.

About IONA
IONA Technologies (NASDAQ: IONA) is the leading provider of High Performance Integration? technology for mission critical systems, with more than 4,500 customers worldwide. IONA's software solutions are used to unify corporate IT infrastructures that connect business applications and middleware subsystems from various vendors into a coherent strategic federation.

Founded in 1991, IONA has an outstanding record of successful, large-scale deployments across such demanding industries as manufacturing, financial, telecommunications, government and defense. IONA remains dedicated to creating interoperability through standards-based technologies including CORBA, Web services, and J2EE and pursues such interoperability in an incremental, non-disruptive fashion.

IONA is headquartered in Dublin, Ireland, with U.S. headquarters in Waltham, Massachusetts and offices worldwide. For additional information about IONA, visit our Web site at http://www.iona.com.

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, profitability, and economic and market conditions. The forward-looking statements made are neither promises nor guarantees and 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 Company's cost-reduction efforts; the integration of recent and future acquisitions; the launch and acceptance of IONA's High Performance Integration software products; growth in market demand for Web services and integration; IONA's sales model; volume, timing and seasonal patterns of product sales; impact of competitive products and pricing; development, launch and market acceptance of new and improved products; undetected errors in software; and general economic conditions, including their effect on the acquisition of new accounts and the time required to close sales transactions. For a more detailed discussion of the risks and uncertainties, please refer to our most recent Annual Report on Form 20-F and other periodic reports and registration statements filed with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements in this press release, which are current only as of the date when made. You should not expect that these forward-looking statements will be updated or supplemented as a result of changing circumstances or otherwise, and IONA disavows and disclaims any obligation to do so.

IONA, IONA Technologies, the IONA logo, Orbix, High Performance Integration, Artix, Mobile Orchestrator and Making Software Work Together are trademarks or registered trademarks of IONA Technologies PLC and/or its subsidiaries. J2EE is a trademark or registered trademark of Sun Microsystems, Inc. in the United States and other countries. CORBA is a trademark or registered trademark of the Object Management Group, Inc. in the United States and other countries. All other trademarks that may appear herein are the property of their respective owners.

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