Bea Systems, Inc.
(www.beasys.com)
Ticker:BEAS 385 Moffett Park Drive, Suite 105
Exchange:NASDAQ-National Market Sunnyvale, CA 94089
Industry:High-Tech (SIC Code 7372) (408) 743-4000

Offering Information
Type of Shares:Common Shares Filing Date:1/31/97
U.S. Shares:5,000,000 Offer Date:4/10/97
Non-U.S. Shares:0 Filing Range:$6.50 - $7.50
Primary Shares:5,000,000 Offer Price:$6.00
Secondary Shares:0 Gross Spread:$0.42
Offering Amount: $35,000,000 Selling:$0.22
Expenses:$2,100,000 Reallowance:$0.10
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Goldman, Sachs & Co.Lead Manager (212) 902-5959
Alex. Brown & Sons IncorporatedCo-manager (410) 895-2700
Robertson, Stephens & CompanyCo-manager (415) 989-8500
SoundView Financial Group, Inc.Co-manager (203) 462-7242

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Morrison & Foerster
Bank's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Auditor: Ernst & Young
Registrar/Transfer Agent: Boston Equiserve Limited Partnership

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
1/31/96 10/31/96 10/31/95 10/31/96
Revenue:$5.13$36.35$0.75Assets:$48.46
Net Income:-$17.74-$86.16-$8.11Curr Assets:
EPS:-$0.58-$1.72Liabilities:$122.18
Prior EPS:-$5.55-$2.87Curr Liabilities:
Cash Flow/Oper:-$6.17Equity:-$73.72
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company designs, develops, markets and supports software used by large organizations to enable and support their most critical business processes. The company's Enterprise Transaction Framework is an integrated middleware software platform for developing, deploying and managing distributed mission-critical computer software applications. The core of the BEA Enterprise Transaction Framework is BEA Tuxedo, a software engine that manages transactions and communications for enterprise-wide applications, enabling organizations to realize the benefits offered by distributed computing environments while preserving the traditional advantages of mainframe-based systems. BEA products provide a middleware software infrastructure that supports thousands of simultaneous users distributed worldwide.

Competition
The market for middleware software and related services is highly competitive. The company's competitors are diverse and offer a variety of solutions directed at various segments of the middleware software marketplace. These competitors include database vendors such as Oracle Corporation, IBM Corporation and others, which offer their own development tools for use with their proprietary databases, as well as companies offering and developing middleware software products and related services or application development tools that compete with products offered by the company.

Business Plan
The company's strategy is to leverage its current leadership position in distributed transaction processing in order to establish its middleware solutions as the industry standard for developing, deploying and managing large-scale mission-critical applications for distributed environments. The key elements of the company's strategy are: 1) expand BEA's technology leadership; 2) expand BEA's global solutions channel; 3) promote the embedding of BEA TUXEDO in ISV applications; 4) leverage strategic partnerships; 5) facilitate the emergence of electronic commerce over the Internet; 6) markets and customers.

Use of Proceeds
The proceeds from the proposed offering will be used for repayment of certain borrowings under a credit line and payment of certain obligations incurred in connection with the Acquisitions, and for working capital and general corporate purposes and possible acquisitions.

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