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News Release

ON Technology Long-Term Growth on Track

Larger Resellers and Service Providers Attracting New Business Opportunities

Waltham, MA, April 10, 2000 -- ON Technology Corporation (NASDAQ: ONTC), today announced that its first-quarter results would not be in line with those reported in previous periods. The Company is expecting to report net revenues between $4.0M to $4.3 million and earnings per share between ($0.20) and ($0.22) for the first-quarter of 2000. The revenue shortfall is primarily due to an increased emphasis in attracting larger enterprise customers, computer OEMs, service providers and value added resellers, which has pushed the closing of several transactions past the end of the quarter. The Company also reported a slow start to the first-quarter with IT executives decompressing from the Y2K frenzy, as a secondary factor. The E.P.S. shortfall is a direct result of lower than expected net revenue.

“The U.S. sales force continues to strengthen our pipeline with multiple transactions from large enterprises and recently added significant new opportunities from service providers and reseller channels,” said Bob Doretti, CEO of ON Technology. “Many of these opportunities are presently in a pilot or proof of concept stage. However, on-going negotiations are proceeding expeditiously allowing us to remain optimistic that these delays will translate into higher sales over the longer term.”

During the quarter, the Company began negotiations with large service providers and reselling organizations, who had approached the Company with interest in reselling the ON Command CCM product line to their customer base. The Company expects that these relationships will help to dramatically expand the presence of ON Command CCM within the marketplace over the remainder of this year. The Company is also in talks with some of the largest computer service providers and a leading computer manufacturer to increase the rate in which the product is adopted within larger organizations.

“Our efforts to focus the business on larger prospects has kept the sales cycle from contracting in the manner we experienced last year,” said Mr. Doretti. “There was more interest in the product line than we have resources to accommodate during the first quarter. Our short-term strategic focus is to continue to increase our efforts in acquiring the additional resources required to take advantage of the larger market opportunities.

Additionally, the Company has scheduled its first quarter 2000 earnings release for Tuesday, April 18, 2000 after the close of trading. Management will conduct a conference call beginning promptly at 4:30 p.m. Eastern Time. Participants should dial 888-243-1119 a few minutes before the conference call.

About ON Technology Corporation
ON Technology empowers IT organizations and service providers to manage the full lifecycle of their computing systems over large-scale corporate networks. Our solutions are used to rapidly and reliably deploy critical applications, operating systems, and content to desktops, mobile PCs, handhelds, servers, retail point-of-sale (POS) terminals and banking workstations. Our customers leverage our solutions to significantly reduce IT costs, improve availability and reliability of business-critical applications, and enhance both IT and end-user productivity. ON’s management solution has been chosen by more than 1,000 enterprises worldwide to manage in excess of 1.2 million networked computer systems. For more information visit ON Technology’s Web site at www.on.com or call 800-767-6638.

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Company Inquiries
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Steve Kreth
Michael Mason
Gerald Kimber White
ON Technology
Allen & Caron Inc.
FitzGerald Communications
781-487-3349
212-691-8087
617-585-2292
skreth@on.com
michaelm@allencaron.com
gkimberwhite@fitzgerald.com

ON Technology, ON Command, and ON Command CCM are registered trademarks, and the ON logo and ON iCommand are trademarks of ON Technology Corporation. Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and other countries. All other brand names and trademarks are properties of their respective owners.

The statements in this press release that relate to ON Technology’s future plans, events and performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve a number of risks and uncertainties. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, including the current weakness in the global economy, demand for the Company’s products and services, performance of the Company’s direct and indirect distribution channels, competitive pressures, market acceptance of the Company’s new products and technologies, and the risk factors detailed from time to time in ON Technology’s periodic reports filed with the Securities and Exchange Commission, including without limitation the Company’s Quarterly Report on Form 10-Q for the third quarter of 2003 filed in November 2003. Actual results and performance may differ materially due to these and other factors. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. ON Technology undertakes no obligation to release publicly any updates or revisions to any forward-looking statements contained in this press release that may reflect events or circumstances occurring after the date of this press release.


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