Letter to Stockholders

Jeffrey R. Rodek
Chairman and Chief Executive Officer

To Hyperion Stockholders

It's been a good year at Hyperion, particularly in light of a difficult economy. I am especially pleased that the year's success was measured by consistent quarterly growth and global improvements across all our key metrics. That tells me the strategy we laid out last year is working and we continue to improve execution.

Last year, we told you we planned to capitalize on our dominant presence in finance and strengthen our business intelligence platform. And we did. Our new Web-based financial applications have been extremely well received. In addition, we introduced Hyperion Essbase XTD, a powerful development and deployment platform that greatly improves reporting and relational access. Our customers can now apply an integrated goal-setting, planning, budgeting, forecasting, monitoring and reporting process across the enterprise. This is becoming known as business performance management.

We Deliver Fast ROI
Our solutions enable companies to understand profitability, analyze and model their operations, pinpoint problems, collaborate on responses, and put plans into immediate action with improved accountability. We're hearing from customers that the payback on investment is fast, and that they are gaining important advantages at a critical time.

The economic environment is difficult, but it is creating clear and swift enterprise-wide acceptance of business performance management software. The capital markets collapsed two years ago when focus returned to profits and solid business models. The resulting uncertainty increased the need for companies to plan more frequently, and the financial scandals turned attention to robust, timely, and accurate reporting. Performance matters. Profits matter.

These situations highlighted the need for business performance management and the need for these solutions is long-lasting. The focus on performance and profits is not going away any time soon.

Thank You to All Hyperion Employees
It took enormous effort by all Hyperion employees to bring about a year of progress and investor reward. Our company was greatly bolstered by the additions of Godfrey Sullivan as president and chief operating officer and Nazhin Zarghamee as chief marketing officer. Both bring tremendous industry knowledge and leadership strength to our able team of professionals.

We will continue implementing our strategy, improving our products, and expanding our reach into a market primed and ready for what we have to offer. During these exciting times, we look forward to continuing to meet opportunities through great execution.

Jeff Rodek, Hyperion Solutions Corporation, September 25, 2002