During the fiscal year ended March 31, 1997, Visigenic 
completed the acquisition of PostModern Computing Technologies, Inc, 
a supplier of distributed object technology. In the acquisition 
Visigenic issued 3,099,821 shares of its common stock and paid 
a total of $2.3 million in exchange for all of PostModerns' 
outstanding shares. In connection with the purchase price 
allocation, Visigenic received an appraisal of the intangible 
assets which indicated that approximately $12.0 million of the 
acquired intangible assets consisted of in-process product development 
which had not reached technological feasibility and, in the 
opinion of management, had no alternative future use. The 
acquired in process development was charged to expense in the 
Company's 1997 Statement of Operations.