European PC Software Sales Reach $373 Million 
Windows Applications Outsell DOS Again

September 10, 1992 (Washington, DC) -- Sales of North American software
firms increased 19% to $373 million in Western Europe during the second
quarter of 1992, the Software Publishers Association announced today.

Thirty-four US-based software firms, including Lotus, Microsoft,
WordPerfect, Aldus, Claris, Software Publishing, Borland, Symantec,
Wordstar, T/Maker, and others participated in the SPA's data program by
submitting confidential data to the accounting firm of Arthur Andersen,
who prepared the report for the SPA. The data was collected in 20 software
categories (including word processors, spreadsheets, presentation
graphics, and others) and in six different software formats (including
Macintosh, MS-DOS, and Windows).

The 34 firms reported aggregate European software sales of $373 million in
second quarter 1992. Second quarter sales grew 19% from second quarter
1991. The growth rate varied widely from country to country.

After a slow first quarter, sales for US software firms in Germany/Austria
resumed growing in the second quarter, again making the region the largest
market for software publishers. The United Kingdom/Ireland region was the
next largest and continues its solid growth - up 36% in the second
quarter, after a 37% increase in the first quarter of 1992.

In the first quarter, Western European sales of applications running on
Windows were higher than sales of DOS applications for the first time. In
the second quarter, Windows applications widened the lead over DOS:
Windows application now account for a clear majority of North American
software firms' revenues in Western Europe. Windows applications accounted
for 54% of sales in Europe in the second quarter versus 37% for sales of
DOS. Sales of Windows applications grew 116% from the prior period, while
DOS application sales declined by 29%. Macintosh applications sales held
steady at 8% in second quarter 1992, growing 26% from second quarter
1991.

"Windows applications have come to dominate US companies' sales in Europe,"
said Gerard Gabella, SPA Europe's Managing Director. "Two years ago,
Windows applications accounted for 12% of US companies' sales in Europe,
compared with 77% for DOS. Last year, Windows applications were 30%
compared with 61% for DOS applications. Now, Windows applications account
for 54% of revenues, while DOS applications have declined to 37%."

"This quarter's results reinforce the trend in Western European sales - the
movement from DOS-based to Windows-based applications," said David
Tremblay, SPA's Research Director. "Sales of DOS applications have been
declining on a year-to-year comparison basis since the third quarter of
1991, while Windows applications' sales have registered 110% to 160%
increases. In six of the eight regions we track in Western Europe, Windows
applications now outsell DOS applications. "

The Software Publishers Association is the principal worldwide trade
association of the PC software industry. Its more than 900 members
represent the leading publishers of business, consumer, and education
software in North America and Europe. Headquartered in Washington, DC, the
SPA Europe office is located in Paris, France.

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