F I N A N C I A L

For Immediate Release
Contact:   Herman DeLatte
ON Technology Corporation
(617) 692-3077

ON TECHNOLOGY ANNOUNCES RECORD REVENUES FOR FLAGSHIP PRODUCT ON COMMAND CCM

CAMBRIDGE, MA., April 20, 1999 - ON Technology Corporation (Nasdaq: ONTC) today announced revenues and earnings for its first quarter ended March 31, 1999. Revenues for the first quarter were $6,850,000, an increase of 60% over revenues of $4,175,000 reported for the quarter ended March 31, 1998. Net loss for the quarter was ($741,000) or ($0.06) per share "as reported", ($474,000) or ($0.04) per share "fully taxed". Net loss for the same period last year was ($2,181,000) or ($0.18) per share, after adjusting for the gain on the sale of assets to Elron Software, Inc. Net income for Q1 1998 was $4,337,000 or $0.35 per share, when including the proceeds from the Elron transaction.

ON Command CCM revenue increased 251% to $5,378,000 from $2,137,000 when compared to the same quarter last year, posting the seventh quarter in a row of increasing direct revenues for the Company's strategic product, clearly outperforming the market growth estimates of industry analysts for the desktop management market.

During the past six months, the Company has opened three additional sales offices in the US and six in Europe. These offices are strategically located to continue providing coverage for all major business centers on both continents. In addition, the launch of ON's "Value Added Reseller Program" has increased the Company's channel exposure. Resellers such as Klein Technologies, Inc. have expanded ON Command CCM into new market verticals, specifically the military and federal government. These efforts, coupled with the development of "out of box" solutions, like Volume II of our Year 2000 Jumpstart CD, allow an increasing base of customers to realize the benefits of ON Command CCM.

"Winning the MCI WorldCom transaction after MCI made an intensive, competitive investigation of desktop management solutions demonstrates increasing market understanding of the profound advantages that ON Command CCM brings to customers", said Herman DeLatte, President and Chief Executive Officer of the Company.

ON Technology Corporation is a publicly held company based in Cambridge, Massachusetts. Founded in 1985, ON Technology provides open and scalable solutions that result in financial, operational and strategic benefits for enterprise networks. More information about ON Technology can be found at www.on.com.

Forward Looking Statement: Statements contained herein that are not historical statements (including but not limited to, statements concerning estimates of future revenues, operating expenses and product introductions) constitute forward-looking statements and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The following risk factors, among other factors (including the accuracy of the Company's internal estimates of revenue and operating expense level), may cause the Company's actual results to differ materially from the results stated in such forward-looking statements: variability of the Company's quarterly operating results; rapid technological change in the software industry; competition; product development; inclusion of groupware applications and certain client management software features in system software and applications suites; dependence on key customers; potential acquisitions; marketing products through distributors and resellers; protection of proprietary technology; international revenue; dependence on key personnel; possible volatility of stock price; and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission

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