Applix, Inc. Announces Creation of New Linux Division

Focus on the Rapidly Growing Linux Market and Open Source Software Movement

WESTBORO, MA -- June 16, 1999 -- Applix, Inc. (NASDAQ:APLX), a leader in decision support solutions for the Unix and Linux markets, announced today, the creation of a new Linux division that will be dedicated to the fast growing Linux operating system market and the Open Source Software movement. The new business unit will be called the "Applix Linux Division."

The new division will work with the Linux and Open Source Software community to source and brand applications. It will also continue to aggressively market, sell and support the Company�s Applixware product suite for the Unix and Linux markets.

To fully support the new division's activities, the company also announced a web site which is an Internet-based collaboration system for addressing both customer and developer needs. The web site will provide an on-line knowledge base for users to search for information associated with Linux and Open Source Software vendors. Additionally, the site will feature a capability for the full cycle of problem resolution, including escalation, workflow and notification. The targeted availability date for this new web site is July 15, 1999.

"Changes in customers' needs and software development are transforming the software industry, said Jit Saxena, Chairman and Chief Executive Officer. "We believe that a significant market opportunity exists for a global Linux and Open Source Software company and our goal is to become a brand leader in the Linux market. As a separate business unit, the Linux Division will have a clearly defined business strategy, and the necessary resources to achieve this significant growth opportunity in the Linux market. Further, the Linux Division will be better positioned to seek additional investment capital to finance its development."

About Applix, Inc.

Applix, Inc. (NASDAQ:APLX), headquartered in Westboro, Mass., develops, markets and supports web-based, front office business solutions, which allow organizations to improve decision-making and corporate productivity. The Front Office Business Solutions include the Applix iCustomer.Advantage suite of thin-client Customer Relationship Management (CRM) and real-time Business Intelligence applications: Applix iEnterprise, Applix iHelpDesk and Applix iTM1. In addition to its Front Office Business Solutions, Applix also provides a set of Decision Support applications, consisting of Applixware and Applix Anyware products. The Company's products are available on a variety of software platforms, including Windows, Windows NT, UNIX and Linux environments. More information can be found at www.applix.com and linux.applixware.com.

Notes to Investors

This press release contains certain forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. Specifically, comments related to the demand for, revenue from and acceptance of the Company's products and the Company's position in the markets, may be considered forward-looking and subject to a number of risks and uncertainties, including but not limited to: the rate of growth in market demand for the products; the acceptance of the Company's products; intense competitive conditions; rapid technological change; frequent new product introductions and evolving domestic and international standards which may render existing products and services obsolete. Refer to the Form 10-K for the year ended 1997 for a list of factors as discussed under "Risk Factors ".

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