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Here's Great Plains' (GPSI) recent earnings press release:

FARGO, N.D.--(BUSINESS WIRE)--July 10, 1997--Great Plains
Software, Inc. (NASDAQ: GPSI), a leading provider of Microsoft(R)
Windows NT(R) client/server financial management software for the
midmarket, announced today financial results for the quarter and
fiscal year ended May 31, 1997.

Great Plains Software's fourth quarter revenues were up 35% over
the same period last fiscal year. Revenues for the quarter were
$17.7 million compared to $13.1 million in the fourth quarter of
fiscal 1996. Operating income for the fourth quarter of fiscal 1997
was $2.4 million, an 82% increase over the fourth quarter of fiscal
1996. Earnings per share for the fourth quarter of fiscal 1997 were
16 cents per share. Revenues for the fiscal year ended May 31, 1997,
were $57.1 million compared to $42.3 million for the fiscal year
ended May 31, 1996, a 35% increase. Earnings per share for fiscal
1997 were 36 cents per share.

Revenues from Great Plains' Windows NT(R) client/server financial
management solutions --Dynamics and Dynamics C/S+-- accounted for
$12.7 million in revenues during the fourth quarter of fiscal 1997
compared to $9.5 million in revenues for the same quarter of the
prior fiscal year, an increase of 34%. This increase is less than in
previous year-to-year quarter comparisons for fiscal 1997 due to
strong client/server revenues in the fourth quarter of fiscal 1996 as
a result of the release of the Microsoft(R) SQL Server(TM) edition of
Dynamics C/S+ in that period.

Client/server revenues for the fiscal year ended May 31, 1997,
were up 71% over the previous fiscal year. Revenues generated from
the Company's client/server financial management solutions totaled
$44.2 million in fiscal 1997 compared to $25.9 million for fiscal
1996.

Great Plains Software's heritage business, its DOS and Macintosh
products, accounted for $5.0 million in revenues in the fourth
quarter of fiscal 1997 compared to $3.6 million for the same quarter
of the prior fiscal year, an increase of 38%. This increase in Great
Plains' heritage business was a result of the strong response to the
Version 9.0 upgrade to the Company's DOS solution in the fourth
quarter of fiscal 1997. As expected, heritage revenues declined 21%
year over year to $12.9 million from $16.4 million for the fiscal
years ending May 31, 1997 and 1996, respectively.

Operating income for the fourth quarter was up 82% over the same
period last fiscal year. Operating income for the fourth quarter was
$2.4 million as compared to $1.3 million for the fourth quarter of
fiscal 1996. Operating margin for the fourth quarter of fiscal 1997
was 14%, an improvement over an operating margin of 10% in the fourth
quarter of fiscal 1996. Operating income for the fiscal year ended
May 31, 1997, was $5.3 million, a 62% increase over the $3.3 million
in operating income for the fiscal year ended May 31, 1996.

Net income for the fourth quarter fiscal 1997 was $1.6 million
resulting in net income per share of 16 cents. As a result of a one-
time non-recurring income tax benefit of $4.1 million, net income for
the fourth quarter of fiscal 1996 was $5.5 million. Without this
one-time income tax benefit and on a fully taxed basis, net income
for the fourth quarter of fiscal 1996 would have been $.84 million.
For the fiscal year ended May 31, 1997, net income and net income per
share were $3.6 million, and 36 cents per share, respectively.

On June 25, 1997, the Company completed an initial public
offering of 3,450,000 shares of common stock, which resulted in net
proceeds to the Company of approximately $50 million. In addition,
effective with the initial public offering, the mandatorily
redeemable convertible preferred stock was converted to common stock.

Great Plains Software, Inc. (NASDAQ: GPSI) is a leading provider
of Microsoft(R) Windows NT(R) client/server financial management
software for the midmarket. The Company's award-winning products and
services automate essential accounting functions and enhance the
strategic value of financial information. The Company's products and
services are sold and implemented exclusively by its extensive
network of independent sales and support organizations throughout the
United States, Canada and select international markets.

Microsoft and Windows NT are either registered trademarks or
trademarks of Microsoft Corporation in the United States and/or other
countries. All other products mentioned in this release are
registered trademarks or trademarks of their respective holders.
-0-
*T

Great Plains Software, Inc.

Condensed Consolidated Financial Information

(In thousands, except per share amounts)

Three Months Three Months Year Year

Ended Ended Ended Ended

May 31, May 31, May 31, May 31,

1997 1996 1997 1996

Revenues:
License fees $11,562 $9,286 $35,919 $27,078

Services 6,106 3,777 21,202 15,193

Total

revenues 17,668 13,063 57,121 42,271
Cost of revenues:
License fees 1,810 1,895 6,362 4,913

Services 2,562 1,619 8,261 5,980

Total cost of

revenues 4,372 3,514 14,623 10,893

Gross profit 13,296 9,549 42,498 31,378

Operating expenses:
Sales and

marketing 6,519 4,351 21,935 14,477
Research and

development 2,776 2,525 9,679 8,876
General and

administrative 1,619 1,367 5,592 4,763
Total operating
expenses 10,914 8,243 37,206 28,116

Operating income 2,382 1,306 5,292 3,262
Other income, net 253 52 558 100
Income before
taxes 2,635 1,358 5,850 3,362
Income tax
provision

(benefit) 987 (4,102) 2,207 (4,099)
Net income $1,648 $5,460 $3,643 $7,461

Pro forma net

income per

share $ 0.16 $ 0.36

Shares used in

computing pro

forma net

income per

share(a) 10,422,250 10,003,349

*T

(a) Pro forma gives effect to the conversion of all the shares of
the Company's preferred stock to common stock upon completion of the
initial public offering and has been adjusted to give effect to a
four-for-three split of the outstanding common stock, in the form of
a stock dividend, to be effective June 19, 1997.

CONTACT:

Kim Albrecht

Public Relations Manager

701/281-3735, kalbrech@gps.com

or

Tami Reller

Director of Finance & Investor Relations

701/281-6762, treller@gps.com

KEYWORD: NORTH DAKOTA

BW1326 JUL 10,1997
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