| | FOR
IMMEDIATE RELEASE
| | ---------------------

| | 
| | 

| | Contacts:           | 
| | ------------------- | 
| | Investors           | 
| | Lynne Farris        | 
| | 831-431-1868        | 
| | lfarris@borland.com | 

| | Media              | 
| | ------------------ | 
| | Becky Wood DiSorbo | 
| | 831-431-1894       | 
| | bwood@borland.com  | 

Borland Acquires Highlander Engineering

Expands Borlands Presence in Embedded Systems Market

| | SCOTTS
VALLEY, Calif.  May 28, 2002  Borland Software Corporation (Nasdaq NM:
BORL) announced today it has acquired all the assets of privately held Highlander
Engineering, Inc., a provider of software solutions for the embedded systems market. The
transaction involves cash earnout payments not to exceed $2 million over a two-year period
contingent upon the financial performance of Highlander software products and services.
Borland management does not expect this acquisition to have a material impact on revenues
or net income for 2002. | 
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| | Headquartered
in Lakeland, Fla., and a long-standing partner of Borland, Highlander provides
VisiBroker®-RT, a complete CORBA® runtime and supporting environment for embedded
systems that is based on the core technology in Borland® Enterprise Server. Highlander
primarily serves Fortune 500 companies, including Ciena, Cisco, Fujitsu, GE
Medical, KLA Tencor, NEC, Lockheed Martin, Raytheon and Schlumberger, many of whom are
customers Highlander shares with Borland. | 
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| | Borland
Acquires Highlander Engineering | Page 2 | 
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| | Highlander
was founded in 1994 and has been a Borland partner and licensee since 1996.
Highlanders engineering operations are expected to remain in their current Florida
facilities, while the sales and marketing organization will be assimilated into Borland
worldwide. | 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Just
as our January 2002 purchase of VMGEAR extended our footprint in the Java application
development lifecycle, this acquisition builds on our introduction of JBuilder
MobileSet and JDataStore and expands Borlands presence in the embedded
and wireless applications space, said Dale L. Fuller, president and CEO of Borland.
With Highlander, we can offer our customers a complete solution for the development
and deployment of interoperable applications across embedded and enterprise environments.
Borland is committed to acquiring technologies that complement or further extend our
existing technology capabilities. Both acquisitions are consistent with our goal of
providing our customers with the freedom to develop, deploy and integrate applications
across all major platforms while enhancing the growth of our development and deployment
revenues. | 
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| | Addressing
the Embedded Market | 
| | ------------------------------ | 

| | Common
Object Request Broker Architecture (CORBA) is the leading standard for building
distributed applications requiring high availability, performance, and security. The CORBA
standard is especially relevant for embedded software, a market that industry analysts
expect will exceed $1 billion by 2004. CORBA has made significant inroads into several
embedded software verticals, including telecommunications, defense electronics,
manufacturing equipment, and instrumentation. Highlander was the first to offer embedded
implementations of the CORBA 2.0 standard and even today is the only provider to be fully
compliant with the CORBA 2.3.1 specifications. | 
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| | As
embedded and enterprise applications become more tightly integrated and converge, rapid
development of distributed applications across heterogeneous environments is becoming a
must-have capability for todays embedded systems developers, said Ken Black,
founder, president, and CEO of Highlander. Our successful partnership with Borland
has allowed our customers to take advantage of the proven reliability and interoperability
of the Borland Enterprise Server and freed us to focus on the extensions and optimizations
required for embedded and real-time applications. We are excited about joining Borland and
leveraging its global distribution and support network to bring our time-to-market and
interoperability benefits to even more customers. | 
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| | Borland
Acquires Highlander Engineering | Page 3 | 
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| | About
Borland Enterprise Server | 
| | ------------------------------- | 

| | The
Borland Enterprise Server family of application servers offers a range of functionality to
support todays complex application development and deployment environments. Based on
Borland VisiBroker®, the worlds most deployed CORBA infrastructure, the Borland
Enterprise Server was engineered to provide high performance and reliability at a low
overall cost of ownership. From deploying and running JSPs and servlets to enterprise
J2EE-based application deployments, Borland Enterprise Server provides the tools,
performance, and deployment flexibility to manage implementations effectively and reliably
throughout an ever-changing IT environment. The Borland Enterprise Server is available in
three editions: Web Edition, VisiBroker Edition, and AppServer Edition. For more
information, visit http://www.borland.com/bes/. | 
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| | About
Borland | 
| | ------------- | 

| | Borland
Software Corporation is a leading provider of technology used to develop, deploy and
integrate software applications. Delivering best-in-class technology solutions dedicated
to interoperability, Borland allows enterprises of all sizes to move into Web-based
computing while leveraging legacy systems. From the Fortune 1000 to the Borland Developer
Network comprised of millions of developers around the world, Borland provides customers
the freedom to develop applications, deploy them anywhere, and integrate and manage them
across the enterprise. Borland solutions enable organizations to increase productivity and
deliver higher-performance projects faster and on budget, while lowering total cost of
ownership. | 
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| | Founded
in 1983, Borland is headquartered in Scotts Valley, California with operations worldwide.
To learn more, visit Borland at http://www.borland.com, the community site at
http://community.borland.com, or call Borland at (800) 632-2864. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| | All
Borland brand and product names are trademarks or registered trademarks of Borland
Software Corporation, in the United States and other countries. All other marks are the
property of their respective owners. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Safe
Harbor Statement | 
| | --------------------- | 

| | This
release contains forward-looking statements as defined under the Federal
Securities Laws, including the Private Securities Litigation Reform Act of 1995. All
statements that are not historical are forward-looking. Forward-looking statements may
relate to, but are not limited to, the effect of the acquisition of Highlander Engineering
on Borlands future results, customer base and R&D capabilities, Borlands
ability to successfully integrate Highlander Engineering, Borlands future financial
performance, capital expenditures, revenues, acquisitions, earnings, costs, product
development plans, global expansion plans, estimated size of potential customer markets,
demand for Borlands products, the projected acceptance by existing or potential
customers of new technologies and the potential features of, or benefits to be derived
from, the products developed, marketed or sold by Borland, market and technological trends
in the software industry and various economic and business trends. Such forward-looking
statements are based on current expectations that involve a number of uncertainties and
risks that may cause actual events or results to differ materially. Factors that could
cause actual events or results to differ materially include, among | 
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| | Borland
Acquires Highlander Engineering | Page 4 | 
| | --------------------------------------- | ------ | 

| | others,
the following: general economic factors and capital market conditions, general industry
trends, the potential effects on Borland of competition in computer software product and
services markets, growth rates in the software and professional services markets that
Borland participates in, rapid technological change that can adversely affect the demand
for Borlands products, shifts in customer demand, market acceptance of new or
enhanced products or services developed, marketed or sold by Borland, delays in scheduled
product availability dates, actions or announcements by competitors, software errors,
reduction in sales to or loss of any significant customers, the ability to successfully
integrate acquisitions, Borlands ability to protect its intellectual property
rights, the dependence of certain of Borlands business units on licenses from third
parties, Borlands ability to attract and retain qualified personnel, Borlands
ability to contain costs and unanticipated impact of economic and financial conditions in
the United States and around the world resulting from geopolitical instabilities and the
U.S. war against terrorism. These and other risks may be detailed from time to time in
Borlands periodic reports filed with the Securities and Exchange Commission,
including, but not limited to, its latest Annual Report on Form 10-K and its latest
Quarterly Report on Form 10-Q, copies of which may be obtained from www.sec.gov. Borland
is under no obligation to (and expressly disclaims any such obligation to) update or
alter its forward-looking statements whether as a result of new information, future
events or otherwise. | 
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