On May 20, 1998, we filed a current report on Form 8-K (the “Form 8-K”) regarding our dismissal of Ernst & Young LLP as our independent auditors and the engagement of KPMG LLP as our independent accountants. The contents of that report are as follows:

Form 8-K filed on May 20, 1998

ITEM 4 . CHANGES IN REGISTRANT ’ S CERTIFYING ACCOUNTANT

On May 12, 1998, the Company’s Board of Directors approved a resolution (i) to dismiss Ernst & Young LLP (“E&Y”) as the Company’s independent auditors, effective upon management’s notification of E&Y of the dismissal; and (ii) concurrent with such notification, to engage KPMG LLP (“KPMG”) as Informix’s independent accountants upon such terms as may be negotiated by management.

On May 13, 1998, the Company’s management notified E&Y of the dismissal. On May 19, 1998, the Company engaged KPMG as the Company’s independent accountants.

E&Y’s reports with respect to the Company’s financial statements for the fiscal years ended December 31, 1996 and 1997 did not contain an adverse opinion or a disclaimer of opinion and were not qualified as to uncertainty, audit scope or accounting principles.

In connection with the audits of the Company’s financial statements for each of the two fiscal years ended December 31, 1996 and 1997 and in the subsequent interim period, except as described in the next paragraph, there were no disagreements with E&Y on any matter of accounting principles or practices, financial statement disclosure or auditing scope and procedures which, if not resolved to the satisfaction of E&Y would have caused E&Y to make reference to the matter in their report.

E&Y advised the Company that it disagreed with the Company’s recognition of revenue resulting from software license transactions with industrial manufacturers which occurred during the first quarter ended March 31, 1998. The disagreement was resolved to the satisfaction of E&Y with the result that approximately $6.2 million in revenue has been deferred and will be recognized over a period which Informix expects to be approximately two years. The Company immediately filed an amendment to its quarterly report on Form 10-Q for the quarter ended March 31, 1998 to restate its financial results for the period. The Audit Committee has discussed the accounting for these transactions with management and E&Y.

The Company authorized E&Y to respond fully to the inquiries of KPMG as the successor independent accountants of the Company. Prior to accepting its engagement as the Company’s successor independent accountants, KPMG had the opportunity to discuss with E&Y the subject matter of the disagreement described above and other matters relevant to Informix. KPMG did not offer any report or advice to Informix concerning such disagreement that was important to the Company’s decision in reaching a resolution.

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