June 22, 1998

To: Our Worldwide Customers and Partners

Re: Merger with Sterling Software

Synon has always strived to provide you with the best application development technology and services available. Today, we are taking the next step in that continuing journey.

We have signed an agreement to sell Synon Corporation to Sterling Software. With this merger, we will be joining one of the largest independent software companies in the world — a company known for its financial strength, outstanding people, proven technology and customer commitment. I believe there is an excellent fit between the two companies, and the acquisition enables us to accomplish our goals of growth, enhanced opportunity and improved customer satisfaction. Although the transaction is not expected to close until the end of July, I wanted to give you some information regarding the acquisition and discuss why I’m convinced this will be extremely beneficial for you.

Sterling Software, headquartered in Dallas, Texas, has been a worldwide market leader in the enterprise software business for more than two decades. They have an established track record of continuous growth and financial strength. Sterling Software is one of the largest independent software companies in the world, with 3,100 employees in 85 offices and more than 20,000 customer sites.

Sterling Software’s record of completing acquisitions and integrating companies without disrupting business or customer service is extraordinary. They recognize the investment you’ve made in Synon and its products and are dedicated to ensuring your ongoing success. Sterling Software plans to continue supporting and enhancing both Synon/2E and Obsydian. Together we will have a powerful capability to serve our combined base of customers.

Both companies will be working aggressively to close this transaction and will be getting back to you as soon as possible with more information. In the meantime, to learn more about Sterling Software, please visit their web site at http://www.sterling.com.

Sincerely,

Richard H. Goldberg

President and CEO, Synon Corporation