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ORACLE REPORTS Q4 GAAP EPS OF 38 CENTS, NON-GAAP EPS OF 46 CENTS

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Press release

Q4 GAAP Operating Margin Up to 42%; Non-GAAP Operating Margin Up to a Record 51%

Redwood Shores, CA - June 23, 2009

Oracle Corporation (NASDAQ: ORCL) today announced that fiscal 2009 Q4 GAAP earnings per share were $0.38, down 4% compared to last year. Oracle's Q4 results were impacted by the reduced value of foreign currencies when compared to US dollars. Without this impact, Oracle's Q4 GAAP earnings per share would have been up 9% to $0.42. Fourth quarter GAAP total revenues were down 5% to $6.9 billion, while quarterly GAAP net income was down 7% to $1.9 billion. GAAP new software license revenues were down 13% to $2.7 billion. GAAP software license updates and product support revenues were up 8% to $3.1 billion. GAAP operating income was down 3% to $2.9 billion, and GAAP operating margin was up 100 basis points to 42%. GAAP operating cash flow on a trailing twelve-month basis was $8.3 billion, up 12%.

Fourth quarter non-GAAP earnings per share were down 1% to $0.46. Without the $0.05 per share impact of the reduced value of foreign currencies when compared to US dollars, Oracle's Q4 non-GAAP earnings per share would have been up 9% to $0.51. Non-GAAP total revenues were down 5% to $6.9 billion, while non-GAAP net income was down 5% to $2.3 billion, compared to the same quarter last year. Non-GAAP operating income was down 1% to $3.5 billion and non-GAAP operating margin was up 240 basis points to 51%.

For fiscal year 2009, GAAP earnings per share were up 3% to $1.09. Oracle's fiscal year 2009 results were impacted by the reduced value of foreign currencies when compared to US dollars, reducing fiscal year 2009 GAAP earnings by $0.11 per share. Without this impact, our fiscal year 2009 GAAP earnings per share would have been up 13% to $1.20. Fiscal year 2009 GAAP revenues were up 4% to $23.3 billion, while annual GAAP net income was up 1% to $5.6 billion. Total GAAP new software license revenues for the year were down 5% to $7.1 billion. GAAP software license updates and product support revenues were up 14% to $11.8 billion. GAAP operating income was up 6% to $8.3 billion, and GAAP operating margins were up 80 basis points to 36% in fiscal year 2009.

Fiscal year 2009 non-GAAP earnings per share were up 11% year over year to $1.44. Without the $0.11 per share impact of the reduced value of foreign currencies when compared to US dollars, Oracle's fiscal year 2009 non-GAAP earnings per share would have been up 19% to $1.55. Annual non-GAAP revenues were up 4% to $23.5 billion, while annual non-GAAP net income was up 9% to $7.4 billion compared to fiscal year 2008. Total non-GAAP new software license revenues for the year were down 5% to $7.1 billion. Non-GAAP software license updates and product support revenues were up 14% to $12.0 billion. Non-GAAP operating income was up 12% to $10.9 billion, and non-GAAP operating margins were up 350 basis points to 46%.

In addition, Oracle's Board of Directors declared a cash dividend of $0.05 per share of outstanding common stock to be paid to shareholders of record as of the close of business on July 15, 2009, with a payment date of August 13, 2009. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to the final determination of Oracle's Board of Directors.

"Adjusted for the substantial movement in the US dollar exchange rate this fiscal year, which is beyond our control, we grew non-GAAP earnings per share by 19 percent for the year," said Oracle President Safra Catz. "That's an amazing achievement given what's been happening in the global economy over the past twelve months."

"We executed substantially better than we expected on both the top and bottom line for the quarter," said Oracle CFO Jeff Epstein. "We grew Q4 non-GAAP operating margins by a faster than expected 240 basis points to over 51 percent. That helped us generate $7.7 billion in free cash flow for fiscal 2009."

"We grew faster and took market share from SAP in every region around the world," said Oracle President Charles Phillips. "In Europe our applications business grew 5 percent in constant currency versus negative 27 percent growth for SAP in their most recent quarter. Historically Europe has been an SAP stronghold, but these results prove that we can compete and beat them everywhere."

"The Exadata Database Machine is well on its way to being the most successful new product launch in Oracle's 30 year history," said Oracle CEO Larry Ellison. "Several of Teradata's largest customers are performance testing -- then buying -- Oracle Exadata Database Machines. In a recent competitive benchmark, a Teradata machine took over six hours to process a query that our Exadata Database Machine ran in less than 30 minutes. They bought Exadata."