CA Technologies
Jan 24, 2006

CA Reports Operating EPS Up 33 Percent on Revenue Growth of 5 Percent in Q3 FY2006

Increases Cash Flow Guidance


Company to Hold Webcast Today at 5 p.m. EST

ISLANDIA, N.Y., Jan. 24 /PRNewswire-FirstCall/ -- CA (NYSE: CA), one of the world's largest management software companies, today reported financial results for its third quarter fiscal year 2006, ended December 31, 2005.

    Financial Overview

    (in millions, except share data)                                Percent
                                          Q3FY06**     Q3FY05***    Change

    Revenue                                 $967         $917          5%
    Operating EPS*                         $0.24        $0.18         33%
    GAAP EPS from continuing operations    $0.09        $0.05         80%
    Income from continuing operations        $56          $31         81%

    *   Operating EPS is a non-GAAP financial measure, as noted in the
        discussion of non-GAAP results below. A reconciliation of GAAP results
        to non-GAAP operating income is included in the tables following this
        press release.

    **  Q3FY06 GAAP results include $21 million in restructuring and other
        charges and $114 million in amortization.

    *** Q3FY05 GAAP results include $18 million in shareholder litigation
        charges and $112 million in amortization.

"In the third quarter, CA continued to make enhancements to the business to drive long-term growth," said CA President and Chief Executive Officer John Swainson. "We have the right strategy in place to transform the business and establish CA as the company customers turn to for end-to-end enterprise IT management solutions that unify and simplify their IT environments."

CA reported total revenues for the quarter of $967 million, an increase of 5 percent over the prior year period, or 8 percent on a constant currency basis. Revenue results reflect an increase in subscription revenue related to the Company's continued transition to its ratable business model and the effect of its recent acquisitions.



CA's income from continuing operations of $56 million for the quarter increased 81 percent from the prior year's third quarter principally as a result of higher revenue and lower interest and taxes.

CA reported $422 million in cash flow from continuing operations in the third quarter, compared to $365 million reported in the similar period last year. On a comparable basis, non-GAAP adjusted cash flow from continuing operations was $433 million (adjusted for $11 million in restructuring payments) versus $460 million reported the prior year (adjusted for $20 million in restructuring payments and a $75 million payment to the Restitution Fund).

For the first nine months ended December 31, cash flow from continuing operations was $814 million, up 3 percent from the $789 million reported in the prior year period. Non-GAAP adjusted cash flow from continuing operations for the first nine months of the fiscal year was up 17 percent to $904 million (adjusted for $75 million in payments to the Restitution Fund and $15 million in restructuring payments), from $775 million reported in the prior year (adjusted for a $75 million Restitution Fund payment, $20 million for restructuring payments and $109 million in tax benefits).

Billings for the third quarter were $1.29 billion, down 1 percent from the prior year period and up 2 percent on a constant currency basis. Organic billings for the quarter decreased approximately 5 percent, or 2 percent on a constant currency basis. Billings for the trailing twelve months, which normalize quarterly fluctuations and other factors, were $4.45 billion, an increase of 1 percent over the prior year comparable twelve month period. Organic billings for the trailing twelve months decreased approximately 2 percent. Currency fluctuations had an immaterial impact on billings for the trailing twelve months compared to the prior year comparable period.

As is normal in our industry, some customers pay the entire contract value in one single installment at the outset rather than being invoiced on an annual basis over the life of the contract. In the third quarter, CA executed two contracts with an outsourcer that provided for single payments. These two contracts had a favorable impact on third quarter billings and cash flows, contributing an incremental $59 million more in the period than if the contracts were invoiced on an annual basis over the term of these contracts.

Based on its strong year-to-date cash flow performance, CA increased its full-year guidance for non-GAAP adjusted cash flow from continuing operations growth over the prior year from 10 percent growth, to an expected growth range of 12 percent to 15 percent.(1)

The Company also reiterated its full-year guidance of billings growth of mid-to-high single digits.

"Despite the inherently variable nature in billings from quarter to quarter, we have an excellent pipeline going forward and we are confident in our ability to deliver strong fourth quarter performance," said CA Chief Operating Officer Jeff Clarke.

Total bookings for the third quarter, which include $82 million from the Company's indirect business, decreased 14 percent over the prior year period to $832 million. This decline was primarily due to an expected decrease in early contract renewals, as the Company has focused on driving new contract value. North American direct bookings for the quarter grew 11 percent; however, this gain was more than offset by a decline in international bookings.

Total expenses for the quarter were $899 million compared with $870 million in the prior year, up 3 percent, primarily due to restructuring charges, acquisitions and new marketing initiatives.

The balance of cash and marketable securities at December 31, 2005, was $1.83 billion, up from $1.64 billion at September 30, 2005. With $1.81 billion in total debt outstanding, the Company has a net cash position of approximately $22 million.

During the quarter, the Company repurchased almost 4 million shares of its stock at an aggregate cost of $107 million. Since the beginning of its fiscal year 2006 through today, CA has repurchased approximately 14 million shares of its stock at an aggregate cost of approximately $400 million. The Company intends to repurchase $600 million of its shares during fiscal year 2006.



    Recent Progress

    Since reporting second quarter results in October, CA:

    * Launched its Enterprise IT Management (EITM) vision for unifying and
      simplifying the management of IT across the enterprise, which included
      26 fully EITM-enabled products, including Unicenter r11, the first major
      Unicenter version in more than four years;

    * Unveiled a new global branding program, changed its name to CA, launched
      a modified logo and unveiled a new marketing campaign, "Believe Again";

    * Announced an agreement to acquire Wily Technology, a leader in
      enterprise application management, in January, for approximately $375
      million in cash.

    * The transaction is expected to close by the end of the current quarter;

    * Formed a partnership with Garnett & Helfrich Capital to divest CA's open
      source database unit, Ingres, in a move to further focus CA's product
      line on strategic core capabilities where the Company can obtain market
      leadership, and recognized a pretax gain of approximately $8 million;

    * Acquired Control-F1 to provide leading-edge support automation solutions
      to increase customers' IT efficiencies;

    * Divested MultiGen-Paradigm, Inc., to further focus CA's product line;
      and

    * Named to CA's Board of Directors, Christopher B. Lofgren, Ph.D.,
      president, chief executive officer and a member of the Board of
      Directors for Schneider National, Inc.


    Outlook for Q4 and Fiscal Year 2006

The following updated financial guidance is based on current expectations and represents "forward looking statements" (as defined below). It also includes the estimated dilutive earnings per share effect from the close of the acquisition of Wily Technology, which is expected to occur during the fourth quarter.

    (in         Q4FY06**   Q4FY05   % Increase    FY06**      FY05  % Increase
     millions,                         over                            over
     except                           Q4FY05                           FY05
     share
     data)

    Revenue    $975-$1,000   $917      6%-9%   $3,805-$3,830  $3,560    7%-8%

    Operating  $0.23-$0.24   $.20     15%-20%  $0.93-$0.94    $0.80    16%-18%
     EPS*

    GAAP EPS
    (LPS)      $0.09-$0.10  $0.03*** 200%-233% $0.40-$0.41    $(0.01)***  n/m
    from cont.
     ops.

    FOOTNOTES
    *   Operating EPS is a non-GAAP financial measure, as noted in the
        discussion of non-GAAP results below. A reconciliation of GAAP results
        to non-GAAP operating income is included in the tables following this
        press release.

    **  GAAP outlook for FY06 is inclusive of the previously announced
        restructuring charge of $75 million. Q4FY06 and FY06 include an
        estimated dilutive effect of $0.01 to operating EPS and $0.02 to GAAP
        EPS due to the Wily acquisition.

    *** FY05 GAAP EPS includes pretax charges of $218 million, $28 million and
        $16 million related to the Restitution Fund, restructuring and
        shareholder litigation, respectively.

"During the third quarter, CA continued to strive for operational excellence through strong expense control and cash optimization," said CA Chief Financial Officer Bob Davis. "We will continue to take the steps necessary to capture even more cost efficiencies while making the investments necessary to grow our business. In addition, we plan to carefully utilize our cash to return value to shareholders while also making strategic acquisitions that further build out our EITM strategy and give us a competitive advantage in the marketplace."

Webcast and Additional Information

This press release and the accompanying tables should be read in conjunction with additional content that is available on the Company's website, including a supplemental financial package and related slide presentation, as well as a conference call which will be held at 5 p.m. EST today. The conference call will be archived on the site. Individuals can access the information at http://ca.com/investor listen to the call at 1 (706) 679-5227.



About CA

CA (NYSE: CA), one of the world's largest information technology (IT) management software companies, unifies and simplifies the management of enterprise-wide IT. Founded in 1976, CA is headquartered in Islandia, N.Y., and serves customers in more than 140 countries. For more information, please visit http://ca.com.

    (1) A reconciliation of GAAP cash flow from continuing operations to non-
        GAAP adjusted cash flow from continuing operations for fiscal years
        2005 and 2006 is included in the tables following this press release.


    Non-GAAP Financial Measures

This press release includes financial measures for per share earnings and cash flows that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). Non-GAAP "operating" earnings per share excludes the following items: non-cash amortization of acquired technology and other intangibles, in process research and development charges, the government investigation and class settlement charges, restructuring and other charges, and the tax resulting from the planned repatriation of approximately $500 million of foreign cash and interest on dilutive convertible bonds (the convertible shares rather than the interest, are more dilutive, thus the interest is added back and the shares increased to calculate non-GAAP operating earnings). Non-GAAP taxes are provided based on the estimated effective annual non-GAAP tax rate. Non-GAAP adjusted cash flow excludes the following items: Restitution Fund payments, restructuring payments, and the impact of certain non-recurring tax payments or tax benefits. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, non-GAAP financial measures facilitate management's internal comparisons to the Company's historical operating results and cash flows, to competitors' operating results and cash flows, and to estimates made by securities analysts. Management uses these non-GAAP financial measures internally to evaluate its performance and they are key variables in determining management incentive compensation. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, the Company has historically reported similar non-GAAP financial measures to its investors and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures, which are attached to this press release.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this communication (such as statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) constitute "forward-looking statements." A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the risks and uncertainties associated with the CA deferred prosecution agreement with the United States Attorney's Office of the Eastern District, including that CA could be subject to criminal prosecution or civil penalties if it violates this agreement; the risks and uncertainties associated with the agreement that CA entered into with the Securities and Exchange Commission ("SEC"), including that CA may be subject to criminal prosecution or substantial civil penalties and fines if it violates this agreement; civil litigation arising out of the matters that are the subject of the Department of Justice and the SEC investigations, including shareholder derivative litigation; changes to the compensation plan of CA's sales organization may encourage behavior not anticipated or intended as it is implemented; CA may encounter difficulty in successfully integrating acquired companies and products into its existing businesses; CA is subject to intense competition in product and service offerings and pricing and increased competition is expected in the future; certain software that CA uses in daily operations is licensed from third parties and thus may not be available to CA in the future, which has the potential to delay product development and production; if CA's products do not remain compatible with ever-changing operating environments, CA could lose customers and the demand for CA's products and services could decrease; CA's credit ratings have been downgraded and could be downgraded further which would require CA to pay additional interest under its credit agreement and could adversely affect CA's ability to borrow; CA has a significant amount of debt; the failure to protect CA's intellectual property rights would weaken its competitive position; CA may become dependent upon large transactions; general economic conditions may lead CA's customers to delay or forgo technology upgrades; the market for some or all of CA's key product areas may not grow; third parties could claim that CA's products infringe their intellectual property rights; fluctuations in foreign currencies could result in transaction losses; and the other factors described in CA's Annual Report on Form 10-K/A for the year ended March 31, 2005, and any amendment thereto, and in its most recent quarterly reports filed with the SEC. CA assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

All Rights Reserved. One Computer Associates Plaza, Islandia, N.Y. 11749. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

                                   Table 1
                   COMPUTER ASSOCIATES INTERNATIONAL, INC.
               Consolidated Condensed Statements of Operations
                   (in millions, except per share amounts)
                                 (unaudited)

                                Three Months Ended      Nine Months Ended
                                      Dec 31,                  Dec 31,
                                 2005        2004        2005         2004
                                        (restated)(1)            (restated)(1)

    Subscription revenue        $713         $650       $2,104       $1,875
    Maintenance                  108          112          328          332
    Software fees and other       49           74          129          196
    Financing fees                11           17           38           62
    Professional services         86           64          230          178
    Total revenue                967          917        2,829        2,643

    Amortization of
     capitalized
     software costs              111          112          335          335
    Cost of professional
     services                     69           57          194          167
    Selling, general and
     administrative              405          352        1,175        1,005
    Product development
     and enhancements            171          172          521          524
    Commissions and
     royalties                    87           91          217          226
    Depreciation and
     amortization of
     other intangibles            33           33           95           97
    Other (gains) losses,
     net (2)                     (10)           6          (17)           9

    Restructuring & other         21            -           66           28

    Acquisition IPR&D              -            -           18            -

    Restitution fund and
     shareholder
     litigation
     settlements                   -           18            -          234
    Expenses before
     interest and taxes          887          841        2,604        2,625
    Income from continuing
     operations before
     interest and taxes           80           76          225           18

       Interest expense, net      12           29           31           79
    Income (loss) from
     continuing operations
     before taxes                 68           47          194          (61)
       Income tax expense
        (benefit) (3)             12           16            3          (43)
    Income (loss) from
     continuing operations        56           31          191          (18)
    Disposal of discontinued
     operations, net
     of income taxes               3            -            3           (2)

    Net income (loss)            $59          $31         $194         $(20)

    Basic Earnings (Loss)
     Per Share:
    Income (loss) from
     continuing operations     $0.09        $0.05        $0.32       $(0.03)
    Discontinued
     operations                 0.01            -         0.01            -
    Net income (loss)          $0.10        $0.05        $0.33       $(0.03)
    Basic weighted-average
     shares used in
     computation                 579          589          583          587

    Diluted Earnings
     (Loss) Per Share:
    Income (loss) from
     continuing
     operations (4)            $0.09        $0.05        $0.31       $(0.03)
    Discontinued
     operations                 0.01            -         0.01            -
    Net income (loss) (4)      $0.10        $0.05        $0.32       $(0.03)
    Diluted weighted-average
     shares used in
     computation                 606          594          610          587

    (1) The three and nine month periods ended December 31, 2004 have been
        restated to reflect the modified retrospective adoption of SFAS 123(R)
        and other corrections relating to the recognition of revenue as
        disclosed in Note 12b of the Company's Form 10-K/A filing for fiscal
        year ended March 31, 2005.

    (2) The three and nine month periods ended December 31, 2005 include an
        approximate $8 million pre tax gain on the divestiture of Ingres.

    (3) The three and nine month periods ended December 31, 2005 include
        benefits from certain tax credits realized in Q3 FY06. The nine month
        period ended December 31, 2005 also includes a reduction in taxes
        associated with the repatriation of funds, favorable tax audits and
        realization of deferred tax assets related to net operating losses.
        The nine month period ended December 31, 2004 included a one-time tax
        benefit resulting from an IRS decision impacting Foreign Sales
        Corporations.

    (4) Net income and the number of shares used in the computation of diluted
        GAAP EPS for the three and nine month periods ended December 31, 2005
        have been adjusted to reflect the dilutive impact of the Company's
        1.625 percent Convertible Senior Notes.


                                   Table 2
                   COMPUTER ASSOCIATES INTERNATIONAL, INC.
                    Consolidated Condensed Balance Sheets
                                (in millions)
                                 (unaudited)
                                                   December 31,     March 31,
                                                        2005          2005
                                                                 (restated)(1)

    Cash and marketable securities                    $1,833        $3,125
    Trade and installment A/R, net                       400           674
    Federal and state income taxes receivable             53            55
    Deferred income taxes                                131            79
    Other current assets                                  66           102

    Total current assets                               2,483         4,035

    Installment A/R, net                                 505           595
    Property and equipment, net                          626           622
    Purchased software products, net                     507           726
    Goodwill, net                                      5,141         4,544
    Deferred income taxes                                123           105
    Other noncurrent assets, net                         672           536

    Total assets                                     $10,057       $11,163

    Loans payable and current
     portion of long-term debt                            $1          $826
    Deferred subscription
     revenue (collected)-current                       1,244         1,407
    Government investigation settlement                   77           153
    Other current liabilities                          1,443         1,308

    Total current liabilities                          2,765         3,694

    Long-term debt, net of current portion             1,810         1,810
    Deferred income taxes                                 42           121
    Deferred subscription revenue (collected)
     - noncurrent                                        272           273
    Deferred maintenance revenue                         238           270
    Other noncurrent liabilities                          53            53

    Total liabilities                                  5,180         6,221

    Stockholders' equity                               4,877         4,942

    Total liabilities and stockholders' equity       $10,057       $11,163

    (1) Fiscal year 2005 has been restated to reflect the modified
        retrospective adoption of SFAS 123(R) and other corrections relating
        to the recognition of revenue as disclosed in Note 12b of the
        Company's Form 10-K/A filing for fiscal year ended March 31, 2005.


                                   Table 3
                   COMPUTER ASSOCIATES INTERNATIONAL, INC.
                 Quarterly Condensed Statements of Cash Flows
                                (in millions)
                                 (unaudited)

                                        Three Months Ended   Nine Months Ended
                                            December 31,        December 31,
                                         2005        2004      2005      2004
    OPERATING ACTIVITIES:                         (restated)        (restated)
                                                       (1)               (1)

    Net income (loss)                     $59         $31     $194       $(20)
    Discontinued operations, net of
     taxes                                  3           -        3         (2)
    Income (loss) from continuing
     operations                            56          31      191        (18)
    Adjustments to reconcile income
    (loss) from continuing
     operations to net cash provided by
     operating activities:
      Depreciation and amortization       144         145      430        432
      Provision for deferred income taxes (21)         24     (262)      (215)
      Non-cash compensation expense
       related to stock & pension plans    29          32       93         77
      Gain on divestiture                  (8)          -       (8)         -
      Shareholder litigation settlement     -          18        -         18
      Foreign currency transaction
       (gain) loss                         (3)          5      (10)         6
      Acquisition IPR&D                     -           -       18          -
    Changes in other operating assets
     and liabilities:
      Decrease in noncurrent
       installment A/R, net                50           2      112        121
      (Decrease) increase in deferred
       subscription revenue (collected)
       - noncurrent                       (21)          5        5        (52)
      Increase (decrease) in deferred
       maintenance revenue                  2         (13)     (27)       (61)
      (Increase) decrease in trade and
       current installment A/R, net       (48)         73      241        299
      Increase (decrease) in deferred
       subscription revenue
       (collected) - current              148          88     (115)       (59)
       Increase in taxes payable           17          36       82        108
       Restitution fund                     -         (75)     (75)       143
       Restructuring & other, net           -         (20)      41          8
       Increase in A/P, accrued
        expense and other                  48          (8)     110        (28)
       Other                               29          22      (12)        10
    NET CASH PROVIDED BY CONTINUING
     OPERATING ACTIVITIES                 422         365      814        789

    INVESTING ACTIVITIES:
      Acquisitions, primarily goodwill,
       purchased software, and other
       intangible assets, net of cash
       acquired                           (54)       (418)    (680)      (458)
      Settlements of purchase accounting
       liabilities                        (10)         (9)     (30)       (16)
      Purchases of property and
       equipment, net                     (56)        (21)    (111)       (42)
      Proceeds from sale of assets         41           -       41         14
      Sales (purchases) of marketable
       securities, net                     39        (133)     301       (217)
      Increase (decrease) in
       restricted cash                      1          (3)      (3)        (2)
      Capitalized software development
       costs and other                    (23)        (16)     (65)       (47)

    NET CASH USED IN INVESTING
     ACTIVITIES                           (62)       (600)    (547)      (768)

    FINANCING ACTIVITIES:
      Debt borrowing (repayments), net      -         997     (911)       997
      Dividends paid                      (23)          -      (70)       (23)
      Debt issuance fees                    -         (12)       -        (12)
      Exercise of common stock options
       and other                           26          32      105         81
      Purchases of treasury stock        (107)          -     (367)       (11)

    NET CASH (USED IN) PROVIDED BY
     FINANCING ACTIVITIES                (104)      1,017   (1,243)     1,032

    INCREASE (DECREASE) IN CASH AND CASH
     EQUIVALENTS BEFORE EFFECT OF
     EXCHANGE RATE CHANGES ON CASH        256         782     (976)     1,053
    Effect of exchange rate
     changes on cash                      (23)         78      (91)        79
    INCREASE (DECREASE) IN CASH
     AND CASH EQUIVALENTS                 233         860   (1,067)     1,132
    CASH AND CASH EQUIVALENTS AT
     BEGINNING OF PERIOD                1,529       2,065    2,829      1,793
    CASH AND CASH EQUIVALENTS AT
     END OF PERIOD                     $1,762      $2,925   $1,762     $2,925

    (1) The three and nine month periods ended December 31, 2004 have been
        restated to reflect the modified retrospective adoption of SFAS 123(R)
        and other corrections relating to the recognition of revenue as
        disclosed in Note 12b of the Company's Form 10-K/A filing for fiscal
        year ended March 31, 2005.


                                   Table 4
                   COMPUTER ASSOCIATES INTERNATIONAL, INC.
            Reconciliation of GAAP Results to Net Operating Income
                     (in millions, except per share data)
                                 (unaudited)

                                Three Months Ended      Nine Months Ended
                                   December 31,             December 31,
                                 2005        2004         2005       2004
                                         (restated)(2)           (restated)(2)

    Total Revenue                $967        $917        $2,829      $2,643

    Total Expenses                899         870         2,635       2,704

    Income (Loss) Before
     Income Taxes                  68          47           194         (61)

    Non-GAAP Adjustments:

      Purchased Software
       Amortization               100         102           300         305
      Intangibles Amortization     14          10            37          30
      Acquisition IPR&D             -           -            18           -
      Restructuring and
       other(4)                    21           -            66          28
      Restitution fund charge       -           -             -         218
      Shareholder Litigation        -          18             -          16
    Total Non-GAAP Adjustments    135         130           421         597

    Operating Income Before
     Interest Adj. & Taxes        203         177           615         536

    Interest on Dilutive
     Convertible Bonds              2          11             6          31
    Operating Income Before
     Taxes                        205         188           621         567

    Income Tax Provision (3)       59          69           196         183

    Net Operating Income(1)      $146        $119          $425        $384

    Diluted Operating EPS(1)    $0.24       $0.18         $0.70       $0.60

    # of Shares Used(1)           606         644           610         641

    (1) Net operating income and the number of shares used in the computation
        of diluted operating EPS for the three and nine month periods ended
        December 31, 2005 and 2004 have been adjusted to reflect the dilutive
        impact of the Company's 1.625 percent Convertible Senior Notes. The
        number of shares for the three month and nine month periods ended
        December 31, 2004 also includes the dilutive impact of the Company's 5
        percent Convertible Senior Notes.

    (2) The three and nine month periods ended December 31, 2004 have been
        restated to reflect the modified retrospective adoption of SFAS 123(R)
        and other corrections relating to the recognition of revenue as
        disclosed in Note 12b of the Company's Form 10-K/A filing for fiscal
        year ended March 31, 2005.

    (3) Non-GAAP taxes are provided based on the estimated effective annual
        non-GAAP tax rate.

    (4) Three and nine month periods ended December 31, 2005 include
        restructuring charges of $17 and $54 million and other charges of $4
        and $12 million, respectively. The nine month period ended December
        31, 2004 includes restructuring charges of $28 million.

Refer to the discussion of non-GAAP measures included in the accompanying press release for additional information.

                                   Table 5
                   COMPUTER ASSOCIATES INTERNATIONAL, INC.
        Reconciliation of Projected GAAP Results to Operating Results
                     (in millions, except per share data)
                                 (unaudited)

                                     Three Months Ending   Fiscal Year Ending
                                       March 31, 2006         March 31, 2006

    Projected revenue range          $ 975  to  $1,000     $3,805  to  $3,830

    Projected GAAP EPS from
     cont. ops. range                $0.09  to   $0.10     $0.40   to   $0.41

    Non GAAP adjustments, net of taxes

      Acquisition amortization        0.12        0.12      0.47         0.47
      Acquisition IPR&D               0.01        0.01      0.03         0.03
      Tax savings on repatriation     0.00        0.00     (0.06)       (0.06)
      Restructuring & other charges   0.01        0.01      0.08         0.08
      Impact from convertible
       senior notes                   0.00        0.00      0.01         0.01

    Projected diluted operating
     EPS range                       $0.23  to   $0.24     $0.93   to   $0.94

Refer to the discussion of non-GAAP measures included in the accompanying press release for additional information.

                                   Table 6
                   COMPUTER ASSOCIATES INTERNATIONAL, INC.
 Reconciliation of Projected GAAP Cash Flow from Operations to Adjusted Cash


                             Flow from Operations
                                (in millions)
                                 (unaudited)

                                         FY2005                  FY2006
                                                                Projected

    Cash Flow from Operations            $1,527            $1,311  to  $1,351
      Benefit from Tax Law Change          (300)                -           -
      Restitution Fund                       75               150         150
      Restructuring                          25                25          25

    Adjusted Cash Flow from Operations   $1,327            $1,486  to  $1,526

Refer to the discussion of non-GAAP measures included in the accompanying press release for additional information.

SOURCE CA
CONTACT: Shannon Lapierre, Public Relations, +1-631-342-3839,
shannon.lapierre@ca.com, or Olivia Bellingham, Investor Relations,
+1-631-342-4687, olivia.bellingham@ca.com, both of CA