Business Objects wins patent infringement appeal against MicroStrategy; Federal court orders MicroStrategy to stand trial for infringing Business Objects patent

SAN JOSE, Calif. & PARIS, France, Jan. 7, 2005 -- Business Objects (Nasdaq:BOBJ)(Euronext Paris ISIN code: FR0004026250 - BOB), the world's leading provider of business intelligence (BI) solutions, today applauded a Federal appeals court's decision to order a trial in a case involving the copying of core aspects of its industry-leading business intelligence software by MicroStrategy.

"By sending this case to trial, we are confident that MicroStrategy will finally be held accountable for its blatant misuse of technology that the industry has long recognized Business Objects for inventing," said Susan Wolfe, general counsel of Business Objects. "They say imitation is the sincerest form of flattery. Those who flatter another's pioneering work and investment by imitating it are not only behaving unethically but unlawfully as well, and we are confident that the Court will take that view in this case."

In its decision today, the United States Court of Appeals for the Federal Circuit said that a lower court incorrectly concluded that MicroStrategy's products did not violate a key Business Objects patent. The Federal Circuit determined that Business Objects was not precluded from arguing that MicroStrategy's products were equivalent to Business Objects patent claims. Specifically, the Court noted that "Business Objects, therefore, did not narrow this limitation for purposes of patentability and is not precluded from claiming equivalents of the query engine means in the accused products." MicroStrategy is expected to face a trial in the United States District Court for the Northern District of California beginning later this year.

Business Objects filed this lawsuit on October 17, 2001, alleging that MicroStrategy was infringing Business Objects' U.S. Patent No. 5,555,403. On August 29, 2003, the lower court granted MicroStrategy's summary judgment motion and dismissed Business Objects' claims as a result. Believing that the lower court erred in dismissing its infringement claims, Business Objects appealed the ruling to the Federal Court of Appeals.

In 1990, Business Objects invented the concept of "semantically dynamic objects," commonly referred to as the semantic layer. This core technology brought about a radical shift in the way business intelligence software could be used and fueled the growth of the modern BI market. Prior to this invention, end users had to rely on IT staff for access to critical data. With this invention, end users became empowered with self-service access to data by using simple business terms. For the first time, users could autonomously build reports and do analysis, without having to rely on information technology staff.

"In their desperate attempts to compete, MicroStrategy tried to get a free ride by misappropriating technology that others pay for," Wolfe said. "Their big mistake was trying to do so with technology Business Objects invented, and now has in its most sophisticated form."

About Business Objects

Business Objects is the world's leading business intelligence (BI) software company. Business intelligence enables organizations to track, understand, and manage enterprise performance. The company's solutions leverage the information that is stored in an array of corporate databases, enterprise resource planning (ERP), and customer relationship management (CRM) systems.

Popular uses of BI include enterprise reporting, management dashboards and scorecards, customer intelligence applications, financial reporting, and both customer and partner extranets. These solutions enable companies to gain visibility into their business, acquire and retain profitable customers, reduce costs, optimize the supply chain, increase productivity, and improve financial performance.

The Business Objects product line includes software for reporting, query and analysis, performance management, analytic applications, and data integration. In addition, Business Objects offers consulting and education services to help customers effectively deploy their business intelligence projects.

Business Objects has more than 29,000 customers in over 80 countries. The company's stock is traded under the ticker symbols NASDAQ: BOBJ and Euronext Paris (ISIN: FR0004026250 - BOB). It is included in the SBF 120 and IT CAC 50 French stock market indexes. Business Objects can be reached at 408-953-6000 and

Business Objects and the Business Objects logo are trademarks or registered trademarks of Business Objects S.A. or its affiliated companies in the United States and/or other countries.

Tracy Eiler, 408-953-6031
Eastwick Communications
Tracy Beaufort, 408-270-3510

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