Leading analysts identify reporting and consolidation system as important component for Sarbanes-Oxley compliance

Hyperion Customers Affirm Value of Reporting and Consolidation Systems for Ongoing SOX Compliance

SANTA CLARA, Calif., July 24, 2006--Hyperion (Nasdaq:HYSL), the global leader in Business Performance Management software, today announced that leading analysts assert that a financial consolidation and reporting solution -- like those provided by Hyperion -- is essential to achieve a truly comprehensive Sarbanes-Oxley compliance system.

IDC's Market Analysis, Worldwide Financial Compliance Applications 2006-2010 Forecast and Leading Market Trends, and Sarbanes-Oxley Compliance Software 2006: Momentum Will Shift to Controls Optimization, Forrester Research, Inc., March 9, 2006, both outline a short list of building blocks necessary to achieve sustainable Sarbanes-Oxley (SOX) compliance. Financial consolidation and reporting applications appear on both lists, with Hyperion named by Forrester as an example supplier to large public corporations who typically have complex consolidations. (The IDC report did not name specific solution providers.)

The IDC report also affirmed that organizations implementing proven reporting and consolidation systems are likely to experience operational efficiencies that will give them greater insights into their financial performance.

"For the first time, two different reports issued almost simultaneously by major analyst firms name financial reporting and consolidation as an important component of sustainable compliance processes," said Godfrey Sullivan, president and CEO of Hyperion. "By calling out these capabilities as vital to long-term SOX compliance, the Forrester and IDC reports show that Business Performance Management solutions address the unique and demanding requirements of compliance reporting."

Sullivan also noted that both reports highlight the ongoing benefits of implementing a BPM solution throughout the enterprise. "These are advantages that deliver insight every day, not just once a quarter or once a year," Sullivan said. "I believe our customers would agree: We had a record number of customer sessions that dealt with SOX compliance this year at our Solutions 2006 user conference. Clearly, these concerns are top of mind for more organizations than ever before."

IDC and Forrester both predict that enterprise investments in financial compliance-related applications will continue to grow at a healthy pace. IDC pegs the market at $1 billion for 2005, and expects a 16.5 percent compound annual growth rate (CAGR) through 2010. Forrester predicts the greatest sales growth for compliance software will occur in the next three years as organizations move away from time-consuming, error-prone spreadsheet approaches to more efficient, automated solutions.

"Organizations that have not already done so are adopting financial consolidation applications as systems of record for financial reporting," said Kathleen Wilhide, research director for compliance and business performance management solutions at IDC, and author of the IDC Market Analysis. "Compliance in general has driven a resurgence in this market, as the controls within the financial reporting processes have been cited as weaknesses."

"As companies look to make SOX compliance more efficient and repeatable and improve controls reliability, technology is becoming a key enabler of these efforts. Shifting SOX costs rapidly from labor and external services to technology will not necessarily produce the desired results. Controls automation and optimization investments should follow foundation investments in accounting and financial reporting systems and in internal controls documentation and evaluation tools." (Sarbanes-Oxley Compliance Software 2006: Momentum Will Shift to Controls Optimization, Forrester Research, Inc., March 9, 2006.)

Hyperion Helps Increase Confidence in Financial Data

Recently, Hyperion enhanced its compliance-related BPM offerings with Hyperion System 9 Financial Data Quality Management, the industry's first packaged solution for finance users to develop standardized financial data management processes with a Web-based guided workflow user interface. The solution is designed to increase companies' confidence in their financial data, simplify data collection and transformation, improve the productivity of the finance staff and lower the cost of compliance. It includes unique capabilities to improve the financial closing process and reduce compliance costs, such as instant error checking, audit validation, automatic archival, and supplemental data collection including tax and other information.

In its report, IDC also cites the advantage of a compliance dashboard tool capable of serving as a single OLE interface to an integrated view of financial consolidation and reporting and internal controls assessment. Hyperion determined the need for this capability in the early stages of SOX legislation, developing the Compliance Management Dashboard and partnering with key internal control vendors to provide an integrated view of consolidation components.

The Hyperion Compliance Management Dashboard is the first solution to bring together internal control information with financial data in a dashboard that helps customers quickly and efficiently evaluate the effectiveness of internal controls on material financial accounts. By providing "traffic-light" and drill down capabilities that allow senior managers to quickly evaluate the status of compliance efforts, the Compliance Management Dashboard gives managers dynamic access to key control indicators that offer insight into potential risk exposures.

About Hyperion

Hyperion Solutions Corporation is the global leader in Business Performance Management software. More than 12,000 customers rely on Hyperion software to provide visibility into how their businesses are performing and to help them plan and model to improve that performance. Using Hyperion software, customers collect data, organize and analyze it, then communicate it across the enterprise. Hyperion offers the industry's only Business Performance Management solution that integrates financial management applications with a business intelligence platform into a single system.

Named one of the FORTUNE 100 Best Companies to Work For (2004), Hyperion serves global customers in 105 countries. A network of more than 600 partners provides the company's innovative and specialized solutions and services. Hyperion generated revenues of $765 million for the fiscal year that ended June 30, 2006 and is traded under the Nasdaq symbol HYSL. For more information, please visit

Safe Harbor Statement

Statements in this press release other than statements of historical fact are forward-looking statements, including, but not limited to, statements concerning the potential success of anticipated product features and functionality, the anticipated product offerings and the potential market opportunities for business performance management software. Such statements constitute anticipated outcomes and do not assure results. Actual results may differ materially from those anticipated by the forward-looking statements due to a variety of factors, including, but not limited to the company's ability to retain and attract key employees, the successful and timely development of new products, the impact of competitive products and pricing, customer demand, and technological shifts. For a more detailed discussion of factors that could affect the company's performance and cause actual results to differ materially from those anticipated in the forward-looking statements, interested parties should review the company's filings with the Securities and Exchange Commission, including the Report on Form 10-K filed on August 31, 2005 and the report on Form 10-Q filed on May 10, 2006. The company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

"Hyperion" and Hyperion's product names are trademarks of Hyperion. References to other companies and their products use trademarks owned by the respective companies and are for reference purpose only.

Caroline Japic, 408-588-8537

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