| | FOR
IMMEDIATE RELEASE
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| | 
| | 

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

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

Borland and WebGain Settle Patent Dispute

| | SCOTTS
VALLEY, Calif.  July 29, 2002  Borland Software Corporation (Nasdaq NM: BORL) today
announced that Borland and WebGain, Inc. have settled their pending patent litigation. | 
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| | Under
the terms of the settlement agreement, WebGain has agreed to dismiss its suit which had
sought a ruling from the Court that their Visual Café and Structure Builder products did
not infringe six Borland patents and which alleged that such patents were invalid.
Borland has also agreed to dismiss its counterclaim against WebGain, which alleged that
WebGains Visual Café and Structure Builder products infringed seven Borland patents.
While both dismissals were without prejudice, each of the parties has agreed that, prior
to July 1, 2006, it will not initiate any legal proceedings against the other relating to
the infringement, validity or enforceability of the seven patents in dispute. This
non-assertion covenant terminates prior to July 1, 2006 if a number of events occur
including, without limitation, a change in control of WebGain. Pursuant to the settlement
agreement, neither party will receive any damages or reimbursement of costs or fees from
the other. Further details of the settlement are not being disclosed. | 
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| | Borland and WebGain Settle Patent Dispute | Page 2 | 
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| | As
we said a year ago, we were disappointed that WebGain had decided to resort to legal
action rather than pursue an equitable resolution through a licensing agreement as we
offered in the spring of 2001, said Dale L. Fuller, president and CEO of Borland. Given
the uncertainty surrounding WebGains future, we believe the settlement is good for both
parties and we are pleased that we were able to resolve this litigation so that we can
avoid the continuing costs, time, uncertainty and distractions of a lengthy legal battle
and, most importantly, focus on meeting the needs of our customers. | 
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| | Borland
has been a leader in the creation of market leading, best-in-class development
environments since the company was founded almost 20 years ago. Over the past two
decades, we have invested millions of dollars to design products that increase developer
productivity and reduce time to market for software projects for the enterprise, and
today we have nearly 100 issued U.S. patents in our intellectual property portfolio. As
this litigation demonstrated, Borland is serious about protecting its intellectual
property, and we will continue to take the necessary steps to safeguard these valuable
assets, Mr. Fuller concluded. | 
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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. | 
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| | Borland and WebGain Settle Patent Dispute | Page 3 | 
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| | 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, 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 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 and Borlands failure to reduce costs. 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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