European Software Sales Reach $1.70 Billion in 1992
Revenues increase 19% from 1991

March 24, 1993 (Washington, DC) - The Software Publishers Association (SPA)
announced today that North American software firms' revenues in Western
Europe were $1.70 billion in 1992, which is a 19% increase in revenues and
a 53% growth in units.

Thirty-four primarily US-based software firms participated in the SPA's
data program by submitting confidential data to the accounting firm of
Arthur Andersen, which prepared the report tor the SPA. Participants
included: Aldus, Borland, Clans, Lotus, Microsoft, Software Publishing,
Symantec, T/Maker. and WordPerfect. The data was collected in 20 software
categories (including word processors, spreadsheets, presentation graphics
and others) and in six software formats (including DOS, Macintosh and
Windows).

The participating firms reported aggregate European software sales grew 19%
in 1992, reaching $1,695 million for the full year. Fourth quarter sales
were $510 million, a 16% increase over the fourth quarter of 1991.

Growth rates varied widely from country to country, as shown in the table
below.

Like the North American market, sales growth in Western Europe has
moderated from the rates seen in recent years. Pricing pressures and
changes in the mix of applications sold have caused revenue growth to lag
the growth of unit sales. The 19% growth rate in Western Europe compares
favorable with the 14% rate reported in North America for 1992

Germany/Austria remained the largest Western European region for US
publishers' sales, with revenues of $490 Million for the year The
UK/Ireland region was next largest, with sales of $409 Million. With a
growth rate of 32% for the year, The UK/Ireland region was the fastest
growing of the major regions. Only Switzerland, with sales growth of 75%
to $69 Million, grew faster than the UK/Ireland region. These figures
should not be considered estimates of market size, since the sample only
includes the sales of the major North American software firms in each
market. Generally in European software markets, sales of North American
personal computer software products are approximately 75% of the total
market in each country.

Windows applications have come to dominate US publishers sales in Western
Europe. 56% of applications revenues in Europe in 1992 were for Windows
applications, with Windows applications accounting for 63% of fourth
quarter revenues. Windows applications revenues were up 102% for the year,
while DOS applications sales declined 30%, dropping to 33% of total
application-s revenues for the year. Macintosh applications grew 18% for
the year, and maintained a 9% share of applications revenues.

"European users have embraced Windows applications much more rapidly than
have users in North America, but the use is concentrated in two core
productivity application categories," said Gerard Gabella, Managing
Director of SPA Europe. "In general, sales in Europe are much more
concentrated in word processors and spreadsheets than in North America
(61% in Europe, 28% in North America). This is even more true for Windows
applications. Windows word processors account for 66% of word processor
sales in Europe, versus 50% in North America. Windows spreadsheets make up
63% of sales in Europe, versus 43% in North America. Together, Windows
word processors and spreadsheets make up nearly 40% of total US companies'
software sales in Europe versus only 13% in North America. So, while
European users have  a higher proportion of Windows applications, their
use is not as broad, concentrating in word processors and spreadsheets."

The Software Publishers Association is the principal trade association of
the PC software industry. Its more than 1,000 members represent the
leading publishers in the business, consumer, and education markets. The
SPA has offices in Washington, DC, and Paris, France.

Software publishers Association
1730 M St, Northwest, Suite 700, Washington, D.C. 20036
202-452-1600,  Fax: 202-223-8756

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