Lotus Ships Notes Release 3.1

CAMBRIDGE, Mass., June 27,1994 -- Lotus Development Corp. begins shipments
this week of Lotus Notes Release 3.1, an upgrade to all client and server
editions of its best-selling Lotus Notes platform for developing and
deploying groupware applications.

Notes Release 3.1 includes improvements in four key areas: accelerated
application development; usability and training; performance/reliability;
and extended support for cross-platform computing.

Included in Notes Release 3.1 is a built-in Customer Service Application,
designed to show how Notes can be used to improve customer support
operations by providing efficient access to information and reduced
time-to-action. With this built-in application, Lotus plans to speed Notes
deployment and open new opportunities for the more than 4,200 Lotus
Business Partners developing Notes-based groupware solutions.

"With Notes 3.1, our goal is to make it easier for organizations to see the
value of Notes, develop Notes applications, use those applications, and
then deploy them widely across their organizations, and ultimately, to
their own customers and partners," said Jeff Papows, Lotus vice president
of the Notes Product Division.

Notes Release 3.1 is available immediately in North America and is free to
Notes Maintenance Contract holders.

Major product improvements in Notes 3.1 include:

* Application acceleration -- The new Customer Service Application, which
integrates four Notes databases designed specifically for tracking
customer calls, product design problems, and suggestions, as well as a
"knowledgebase" for managing technical notes. The application is "Phone
Notes enabled," which allows it to accept information sent by customers
over the telephone. The databases also feature customizable elements, such
as a data dictionary and a stop watch, which can be reused by developers.
The Customer Service Application also includes a variety of built-in
workflows, automating the process of assigning a customer request to the
appropriate service representative. Included in Notes 3.1 is "Automating
Workflow with Lotus Notes," a guidebook for developers.

* Usability and training -- Lotus ScreenCam for Windows, a multimedia
utility that allows application screen activity, cursor movements and
sound to be captured in an integrated file for distribution to workgroups
of all sizes; three ScreenCam movies to demonstrate and teach the Customer
Service Application; the ability to install Notes from a CD-ROM; and a new
multimedia guided tour of Notes.

* Performance and reliability -- Improved server reliability; enhanced SPX
protocol driver and X.PC modem driver performance; support for Notes/FX
Release 1.1; OLE file handling improvements; new import and export filters
for handling application files, such as Excel, Word and WordPerfect.

* Cross-platform support -- Notes Release 3.1 enables simultaneous upgrades
for Notes users running OS/2 and Windows servers, and Macintosh, OS/2, and
Windows clients. All versions are interoperable with the recently shipped
Notes Release 3.1 for Sun Solaris and the Notes Release 3.1 Server for
NetWare. Notes Release 3.1 also includes a new site planning guidebook to
ease enterprise deployment.

New Partner Opportunities

The Notes Release 3.1 Customer Service Application is expected to enable
new opportunities for Lotus Business Partners because it shows customers
how they can immediately use Notes to improve business processes. Modules
of the application can be incorporated into custom solutions developed by
Lotus Business Partners. With Lotus' recently shipped Phone Notes, these
customer service applications also can be extended to include access to
the databases via the telephone.

"This type of built-in application demonstrates Notes' strength in
customizing and managing business processes," said David Marshak, vice
president Patricia Seybold Group and author of Understanding and
Leveraging Lotus Notes. "This will help customers and solution providers
create and deploy these applications more quickly and effectively -- each
one does not have to reinvent the wheel."

According to Kevin Reilly, president of Trident Software in Sausalito,
Calif., a Notes developer specializing in customer support, "We're very
pleased with how well the Customer Service Application integrates
information about all of the possibilities for using Notes features,
whether you're interested in connecting with FAX gateways or using Phone
Notes. Each of the application's modules is a rich, time-saving source of
well executed and tested elements that can be cut and pasted into your own
application. For example, the stop watch can allow developers to save
hours of programming time when building time billing applications, such as
those for legal or accounting."

Lotus continues to rely on Notes Business Partners to sell and customize
all functional and vertical solutions for Lotus Notes. The Customer
Service Application was chosen for inclusion with the product because of
its key role in assisting the success of initial Notes deployments, and
its ability to showcase the power of Notes for new customers. Lotus
encourages customers to evaluate more advanced customer service solutions
offered by Lotus Business Partners when they are purchasing a production
customer service solution.

Pricing and Availability

Lotus Notes Release 3.1, priced at $495 for any client or server edition,
is available in North America from Lotus Business Partners and resellers.
Current Notes customers who do not hold a Notes Maintenance Contract must
purchase one Notes client and one Notes server edition for $495 each.
Customers may then distribute this software at no charge to all current
licenses within the organization. For information about Notes Release 3.1
call Lotus at 1-800-346-1305.

Lotus ScreenCam is included as a promotional bundle with Lotus Notes. It
also is available as a standalone product for a suggested retail price of
$79.

International English, French, German and Spanish versions of Notes 3.1
will ship within 30 days of the North American version. Japanese, Chinese,
Taiwanese, Italian, Norwegian, Swedish, Danish, Dutch, Finnish, Czech,
Polish, Hungarian, Korean, and Portuguese versions will ship within the
following 30-120 days.

Lotus Notes is the industry standard client-server platform for developing
and deploying groupware applications. It allows people to access, track,
share and organize information in ways never before possible, even if they
are only occasionally connected to a network. Since its introduction,
nearly 3,200 companies and more than 750,000 people are using Notes to
improve business processes, including customer service, sales and account
management, and product development.

Lotus Development Corp. (NASDAQ: LOTS), founded in 1982, offers high
quality software products and support services that reflect the company's
unique understanding of the new ways in which individuals and businesses
must work together to achieve success. Lotus' innovative approach is
evident in a new class of applications that allows information to be
accessed and communicated in ways never before possible, both within and
beyond organizational boundaries. The company now markets its products in
more than 80 countries worldwide and provides numerous support services,
both from its consulting division and its award-winning 24-hour support
center.

Lotus Development Corp
55 Cambridge Parkway
Cambridge, MA 02142
617-577-8500

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