Press Release: May 16, 2001

WR Hambrecht + Co Initiates Coverage of Oracle (ORCL) with a Neutral Rating

San Francisco, CA, May 16, 2001—WR Hambrecht + Co today initiated research coverage on Oracle Corporation [ORCL] with a Neutral rating. WR Hambrecht’s Business Applications analyst Rich Petersen cites Oracle’s relatively high price-to-earnings-to-growth premium and suite-focused strategy as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“Oracle, like almost every other software company, currently has poor visibility into future quarters sales. This is a near-term visibility problem stemming from the macroeconomic environment and its effect on capital spending. However, we think Oracle’s earnings visibility will remain impaired for a longer period because Oracle has recently begun to compete in more markets, and we think this change brings additional risk to the business,” Petersen said.

As far as upside potential, Petersen notes Oracle should benefit from a market that is projected to more than double to $120 billion by 2004.

WR Hambrecht + Co estimates Oracle will earn $0.41 per share on revenues $10.8 billion in fiscal 2001 up from $0.34 EPS on $10.1 billion in fiscal 2000.

Oracle Corporation develops, manufactures, markets and distributes computer software that helps corporations manage and grow their businesses.