U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17522 / May 20, 2002

   SECURITIES AND EXCHANGE COMMISSION v. REZA MIKAILLI, GARY F. PADO AND
   UNIFY CORPORATION, No. C022426 RS

   SEC BRINGS FINANCIAL FRAUD CHARGES AGAINST FORMER EXECUTIVES OF UNIFY
   CORPORATION

   The Securities and Exchange Commission today announced that it has
   filed a complaint in the United States District Court for the Northern
   District of California against two former executives of Unify
   Corporation, a software company now based in Sacramento, California,
   that manufactures and sells database management software. The
   Commission's complaint alleges fraud and other violations against
   former Unify CEO Gholamreza (Reza) Mikailli, 49, of Saratoga, Calif.,
   and former CFO Gary L. Pado, 38, of Sacramento, Calif.

   The complaint alleges that from May 1999 through May 2000, Mikailli
   and Pado caused Unify to recognize revenue fraudulently on
   transactions that they knew were subject to contingencies (including
   rights of return or cancellation), or involved barter transactions.
   Under generally accepted accounting principles (known as "GAAP"), it
   was improper for Unify to recognize revenue on contingent transactions
   so long as the contingencies existed and, thus, could nullify or
   impair the sale. Also under GAAP, it was improper for Unify to
   recognize revenue on barter transactions because Unify's revenue was
   contingent on Unify's performance of its obligation to the customer.

   In several instances Mikailli and Pado engaged in "roundtripping," by
   causing Unify to provide funds its customers needed to buy Unify
   products, with no reasonable expectation that the customers would ever
   repay the funds. In some instances, Unify made an investment in
   another company, which then used most or all of the invested funds to
   purchase Unify product. In others, Unify contracted for services from
   other companies through so-called Funded Development Agreements.
   However, the companies provided no such services, and simply used
   funds from Unify to buy Unify product.

   As a result of the fraud, Unify overstated its revenue over four
   fiscal quarters in amounts ranging from 61% to 150% per quarter.
   During the course of the fraud, Mikailli sold all of his shares of
   Unify stock and received gross proceeds of approximately $8.2 million.
   Mikailli illegally failed to file any reports with the Commission
   disclosing his stock sales during this period.

   The complaint charges Mikailli and Pado with violating the antifraud,