July 31, 2002

News Release: Open Text Posts Record Revenue and Profits for Fourth Quarter 2002

Open Text(TM) Corporation (Nasdaq:OTEX)(TSX:OTC.), provider of Livelink(R), the leading collaboration and knowledge management software for the global enterprise, today announced financial results for its fourth quarter and year ending June 30, 2002.(1)

Financial Highlights

Open Text reported record adjusted net income(2) for the fourth quarter of $7.3 million. This result does not include any gains from the Accelio transaction. Adjusted earnings per share (EPS) of $0.35 (diluted) is up 30% from the fourth quarter a year ago. Adjusted net income for the year was $21.6M, or $1.02 per share. Cash flow from operations for the quarter was $8.5 million, for a record total of $28.5 million during the fiscal year. GAAP net income for the quarter was $7.3 million and for the year was $16.7 million. Total revenue for the quarter of $41.2 million represents the largest total revenue recorded in the Company's history. This amount represents an increase of 12% from the previous quarter. This increase was driven by strong license and networking revenue of $19.9 million, which increased 28% from the previous quarter. Total revenue for the year of $152.5 million also represents record annual revenue for the Company, an increase of $4.8 million over last year.

"With another quarter of strong earnings and license revenue growth, we continue to operate the Company with a focus on profitability and cash flow," said Tom Jenkins, CEO of Open Text. "The Livelink product family continues to demonstrate a rapid return on investment for our global 2000 customers particularly in this difficult economic climate. Livelink has earned its leadership position in collaboration and knowledge management by successfully improving organizational productivity and profitability."

Revenue results for the quarter were broadly based globally. For the quarter, 59% of the Company's revenue originated from North America, 39% from Europe & the Middle East, and the remaining 2% from Asia.

Accounts receivable as of June 30, 2002 was $33.1 million, resulting in days sales outstanding (DSO) of 72 days. As of June 30, 2002, cash was $109.9 million or $5.53 per share. Working capital is $103.9 million with no debt. Deferred revenue was $23.9 million, up $1 million from the previous quarter.

Also during the quarter, as part of its share repurchase program, the Company repurchased a total of 271,500 common shares, representing a total cost of $5.5 million. The Company plans to continue this program.

The Company remains comfortable with First Call consensus earnings estimates of $1.18 for FY03.

New Accounts and Large Deals drive License Revenue

During the fourth quarter, new account revenue grew by 87% from the previous quarter and half of all license revenue was generated from new accounts. There were 6 multi-million dollar transactions in the quarter which is the highest in Company history. New name accounts buying in the quarter included: MARSH USA Inc., EnCana, European Investment Bank, Pacific Life Insurance, BUPA(British United Provident Association), Giant Eagle and T-Systems, a subsidiary of Deutsche Telekom AG. Open Text's largest customers also drove the financial results by continued enterprise-wide adoptions. Repeat customers buying in the quarter included: Unilever, Hewlett-Packard, Vodafone, British Telecom, ALSTOM, Wells Fargo, and Northrop Grumman.

Fiscal Year in Review

1. Six Million Seat Milestone Achieved

The number of Livelink product family seats reached six million during the fiscal year. This milestone was driven by a record number of new customers and increased adoption from existing accounts.

2. Livelink: Leader in Team Collaboration Support

Open Text has been placed in the leadership category in several recent reports on collaboration and knowledge management. In May 2002, a Gartner report on Team collaboration places Open Text as a leader in technology vision as well as ability to execute.

Throughout fiscal 2002, Livelink was featured as a leader in the following recently published industry analyst reports:

-- Giga's IdeaByte of June 14, 2002 entitled Comparing Team Collaboration Vendors on Their Collaboration Functionality by Director Erica Rugullies.

-- IDC's Case Study Interview of June 11, 2002 entitled Siemens Gains Efficiency with Livelink and SAP R/3 Integration by Analysts Andrew Adelson and William Joyce.

-- Gartner's Research Note of May 23, 2002 entitled Magic Quadrant: Team Collaboration Support by Research Directors Simon Hayward and James Jacobs.

-- Doculabs' White Paper of May 17, 2002 entitled The Open Text Livelink Records Management Platform by Principal Analyst Richard Medina.

-- Gartner's Research Note of May 8, 2002 entitled The First Wave of Smart Enterprise Suites by Research Directors K. Shegda, M. Gilbert, D. Logan, Simon Hayward, L. Latham, and French Caldwell.

3. Innovations Drive New Collaboration and Knowledge Management Solutions

In fiscal 2002, Open Text continued to expand its product offerings with the launch of more new products than in any other period in the Company's history.

Livelink Vertical Applications

During the year, applications were developed for major vertical applications. These applications included Pharmaceutical, Government, and Financial Services. As an example, the Pharmaceutical application was developed in collaboration with Pfizer and became an FDA approved new drug application product.

Livelink 9.1

In March 2002, the Company began to ship Livelink 9.1. The new version offers enhancements that make the search and information retrieval capability world class, as well as additions such as XML import and export, workflow, tasks, profiles and polling. These features improve collaborative business relationships and further extend an organization's end-to-end knowledge management strategy. Livelink 9.1 is being widely adopted by the Open Text install base.

Livelink MeetingZone(TM)

In November 2001, the Company began to ship Livelink MeetingZone 1.0 and in April, 2002 with MeetingZone 1.1. Open Text continues to see increased adoption rates for Livelink MeetingZone both from within the existing Livelink customer base and from new customer accounts. Livelink MeetingZone integrates real-time collaboration with other Livelink functions, such as document management, records management and automated workflow tools. The product provides real time high quality interactions on an existing Web browser through the use of whiteboards, sharing of spreadsheets, live editing and authoring of documents within a group.

Livelink Records Management.

With the increased emphasis by corporations on the management of their records and the orderly recall and disposal of these records, demand for Livelink RM has increased. The latest Livelink RM module was released in the November 2001 and has extended the ease of use and functionality of this product to suit the current demands of Open Text customers.

Livelink eSign

Livelink eSign was introduced in the fall of 2001 at LiveLinkUp in Las Vegas. Livelink eSign provides a regulatory method by which documents and processes can be approved online, thereby avoiding the costly need of paper approvals. Livelink eSign has been widely accepted in the Open Text install base.

Other new product offerings launched during this fiscal year include:

-- Livelink Archive for SAP R/3

-- Livelink Certification

-- Livelink for Learning Management

-- Livelink virtualteams

-- Livelink for Program Management

-- Livelink Unite

4. User Events

During the year, Open Text hosted a series of high profile user events throughout the world. These events included LiveLinkUp North America 2001, held from November 5th to 9th, 2001 in Las Vegas. With over 1,000 in attendance, Open Text customers highlighted successes in improving organizational productivity and profitability through the use of Livelink.

The Company hosted LiveLinkUp Europe 2002, its first annual European user conference, in Paris from April 14th to 17th. With over 700 users in attendance, European deployments of Livelink were featured.

The Company has announced the next LiveLinkUp North America will be held November 4-8,2002 at Navy Pier in Chicago. There will be an Analyst Day conducted on November 7, 2002. More information can be found at the corporate Web site.

5. Upcoming Investor Conferences

Open Text announced that it plans to participate in the following financial conferences hosted by the respective brokerage firm. Note that event dates and times are subject to change. To confirm a date or learn about Web cast availability, visit the Company's Web site closer to event date at www.opentext.com/investo