PRESS RELEASE

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RAINING DATA ANNOUNCES
FISCAL 2003 SECOND QUARTER RESULTS

IRVINE, CA. -

• First Quarter of Positive Operating Income
• EBITDA Improvement to 17% of Revenue, $0.86 Million
• Year over Year Revenue Increase of 13%
  

Raining Data Corporation (Nasdaq: RDTA) today announced financial results for the second quarter of fiscal year 2003. Revenue for the quarter ended September 30, 2002 increased 13% to $4.95 million from $4.39 million for the quarter ended September 30, 2001. Fiscal year to date revenue increased 3% to $9.66 million from $9.41 million in the prior fiscal year.

Earnings (loss) before interest, taxes, depreciation, and amortization (EBITDA) improved by $1.92 million to positive $0.86 million, or 17% percent of revenue, for the quarter ended September 30, 2002. For the quarter ended September 30, 2001, EBITDA was negative $1.06 million. Fiscal year to date EBITDA improved $3.02 million to a positive $1.14 million, or 12% of revenue, from a negative $1.88 million for the same period in the prior fiscal year. The Company computes EBITDA, as reflected in the table below, by adding depreciation, goodwill and non-goodwill amortization and non-cash stock-based compensation expense to its GAAP reported operating income (loss).

The Company recorded an operating profit of $0.01 million for the quarter ended September 30, 2002 as compared to an operating loss of $4.68 million for the same period in the prior year. Fiscal year to date operating loss was $0.63 million compared to a loss of $9.24 million for the first six months of the prior fiscal year.

For the quarter ended September 30, 2002, net loss was $0.98 million as compared to a net loss of $5.63 million for the same period in the prior fiscal year. Fiscal year to date net loss was $2.66 million compared to a net loss of $11.14 million a year ago.

Net loss per share was $0.05 and $0.15 for the quarter and six months ended September 30, 2002 as compared to a net loss per share of $0.36 and $0.71 for the quarter and six months ended September 30, 2001.

“This quarter the Company realized the financial benefits of the cost controls and changes that have occurred over the last twelve months as evidenced by recording an operating profit for the first time since the merger in December 2000,” said Carlton H. Baab, President and CEO. “We have also seen year over year growth in the revenues of the Company and further improvement in the EBITDA, while we have continued to focus on and invest in product development. With the scheduled releases of updates to our existing products, successful implementation of a price increase during the second quarter and a continued focus on cost control, we look to maintain this positive momentum through the rest of fiscal 2003 and beyond.”

About Raining Data

Raining Data Corporation, headquartered in Irvine, California, offers a suite of software infrastructure products that enable developers to create innovative applications. Raining Data's flagship products are: 1) a family of powerful multi-dimensional database management systems that are the choice of thousands of application developers worldwide and include D³®, mvEnterprise® and mvBase®; 2) mvDesigner®, an object-oriented rapid application development (RAD) tool developed for use with multi-dimensional database applications; and 3) Omnis Studio® -- a powerful, cross-platform, object-oriented RAD tool that is well suited for developing sophisticated thick-client, Web-client or ultra thin-client database applications.

Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding the Company’s future release of new products and updates and future financial performance. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the availability of adequate liquidity, the Company’s ability to maintain market share for its existing products, the success of its research and development efforts to penetrate new markets, the market acceptance of the Company’s new products and updates, technical risks related to such products and updates and other risks and uncertainties. Please consult the various reports and documents filed by Raining Data Corporation, formerly known as Omnis Technology Corporation, with the U.S. Securities and Exchange Commission, including but not limited to the Company’s most recent reports on Form 10-KSB and Form 10-QSB for factors potentially affecting the company’s future financial results. All forward-looking statements are made as of the date hereof and the Company disclaims any responsibility to update or revise any forward-looking statement provided in this news release. The Company’s results for the quarter ended September 30, 2002 are not necessarily indicative of the Company’s operating results for any future periods.

mvDesigner, D³, mvEnterprise, mvBase, Omnis, Omnis Studio and Raining Data are registered trademarks of Raining Data Corporation.