Inference Corporation Announces Preliminary First Quarter Results.

NOVATO, Calif.--(BUSINESS WIRE)--May 1, 1997--Inference Corp. (NASDAQ:INFR), today announced that it expects to report revenues for the quarter ended April 30, 1997 in the range of $6.7 million to $7.1 million, and a net loss in the range of $1.0 million to $1.3 million or approximately $.12 to $.16 per share. Product revenues for the first quarter are expected to be in the range of $3.1 million to $3.3 million, and service revenues are expected to be in the range of $3.6 million to $3.8 million.

For the quarter ended April 30, 1996, the Company reported revenues of $9.1 million, and net income of $0.8 million or $.09 per share. Product revenues for the first quarter last year were $5.0 million, and services revenues were $4.1 million.

"The Company is going through a transition in the way we market and offer our products," said Peter R. Tierney, chairman, president and chief executive officer of Inference. "Internationally, where we have a strong dependency, we experienced a significant revenue short-fall that dramatically impacted our entire business. While we have seen some improvement domestically, we still have much to do to improve our ability to execute in the sales and marketing of our products, both domestically and internationally."

The Company anticipates releasing complete financial results on or around May 20, 1997.

Inference is a leading provider of knowledge management solutions that help people in business solve problems for other people. Inference's knowledge management products, developed around its Case-Based Reasoning (CBR) technology, are used by leading organizations around the world - at telesales and telemarketing centers, customer support and service call centers; on help desks for technology, human resources and policies; for self-help sites over the Internet, and automated resolution on the desktop. The Company's headquarters is located in Novato, Calif., with its international headquarters in Slough, UK. The Company also offers a comprehensive set of pre-packaged knowledge and a complete line of consulting, support and training services from offices throughout the U.S. and Europe. For further information, contact Inference Corp. at 415/893-7200, send an e-mail to info@inference.com or visit its World Wide Web page at www.inference.com .

CONTACT: Inference Corporation

Bill Griffin, 415/893-7200