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    2006ORACLES COMMITMENT

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    TAbLE O CONTENTS

    Welcome to Oracles Commitment 1

    Aot Oracle 2

    Oracle in Action 4

    Oracle in the Commnity 8

    Oracles Gloal Workorce 14

    Oracle and Privacy 20

    Governance 22

    Oracle and the Environment 26

    Oracle and Energy Management 30

    Q&A with Oracle President Sara Catz 32

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    Oracle has a long history o employee volnteerism, charitale giving,

    respect or the environment, and a strong commitment to improving

    edcation. bt we have never taken the step o recording or eorts

    or the eneft o or employees, shareholders, cstomers, and policy

    makers arond the worldthat is, ntil now.

    We are prod that the same innovative spirit ehind Oracles technological

    sccess also drives innovative soltions and programs or the eneft o

    or commnities. Programs sch as ThinkQest, or gloal competition or

    stdents to create edcational We sites and therey ild nderstandingacross cltres, and Oracle Academy, which works in partnership

    with secondary schools to edcate stdents, are jst two examples o

    or creative eorts.

    I wold like to take this opportnity to thank or employees or their

    generosity and their sense o volnteerism. Withot them, none o this

    wold e possile. Whether it is y responding to major international

    tragedies sch as the Tsnami or y helping ot at the local homeless

    shelter, or employees actions are a sorce o pride or Oracle.

    With contined hard work, we intend to maintain or reptation asan innovative leader in or indstry, as we contine or commitment

    to good corporate citizenship. I welcome yor eedack to this report

    at [email protected].

    .

    Sara A. Catz

    President, Oracle

    WELCOMETO oracles commitment

    We are committed

    to sing or technology

    and resorces to advance

    edcation in innovative

    ways, promote diversity,

    enrich the lie o com-

    mnities, and protect

    the environment.

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    Oracles business is inormation

    how to manage it, use it, share it,

    and protect it. For nearly three

    decades, Oracle, the worlds largest

    enterprise sotware company, has

    helped governments and businesses

    around the world drive their enterprises

    based on quality, real-time inormation.

    Oracle is helping enterprises use high-

    quality inormation to collaborate,

    measure results, and generate a single

    view o critical business data.

    The success o our products and

    services is based on three principles:

    Simpliy Enterprises must increase

    the speed o inormation delivery

    with integrated systems.

    Standardize Enterprises must

    reduce cost and maintenance with

    open, easily available technology.

    Automate Enterprises must

    improve operational eciency with

    technology and best practices.

    Throughout the companys history,

    Oracle has pursued a position o

    leadership in the technology industry.

    In the course o that pursuit, the

    company and its employees have

    committed to high standards

    in daily business and in the policies

    set orth by the organization.

    This report is a refection o that

    commitment to excellence.

    AbOuT ORACLE

    Or ac l e c Or p Or atiOn at a Gl anc e

    Chie Exective OicerLawrence J. EllisonbsinessData/Enterprise Management Sotware

    Annal Revene uS$14 illion Employees Approximately 55,000 Contries o Operation More than 79 Headqarters

    Redwood Shores, Caliornia, united States

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    O r a c l e p r O d u c t s a n d s e r v i c e s

    The Oracle Dataase Oracle was onded on the concept o an enterprise-strength

    relational dataasesotware that allows sinesses to store and access immense

    amonts o data. or example, Costa Ricas National biodiversity Institte (INbio) ses

    the Oracle Dataase to gather data aot the contrys iological diversity and generateinormation that promotes sstainale se.

    Oracle Applications Oracles Applications prodcts help sinesses inpt, maniplate,

    and view siness data ased on jo role or siness processes. or example, the

    u.S.-ased National Aeronatics and Space Administrations Jet Proplsion Laoratory

    ses Oracle Applications to atomate siness processes, redce operational costs, and

    reinvest savings into space exploration projects.

    Oracle sion Middleware This sotware controls the low o inormation etween the

    dataase and applications, ensring that dierent compter systems can work together,

    secrity policies are enorced, and new applications can e easily deployed. The city o

    Kingston pon Hll in the united Kingdom ses Oracle sion Middleware to integrate

    interactions with its 250,000 citizens and improve access to city services.

    Oracle Services Oracle provides services to help or cstomers get the most rom or

    sotware prodcts, inclding 24/7 gloal technical spport, conslting services to helpwith implementation and pgrades, and Oracle university to assist with training. Oracle

    Conslting helped Yonsei universityone o Soth Koreas leading teaching and research

    instittionsimprove access to We-ased services and internet research tools or its

    45,000-stdent commnity.

    mehsanadistrictcOOperativemilk

    prOducersuniOn

    The Mehsana District Cooperative Mil

    Prodcers union doesnt only deliver

    ntritios ood to the tales o ran

    Indians. It also ensres that armers

    in the contrys poorest rral regions

    have yers or their goods and money

    or their amilies. The program, which

    works to maximize milk prodction

    in Indias most ertile regions and

    distrite dairy prodcts to the city

    centers with highest demand, has

    received worldwide recognition or its

    eorts. It is part o a dairy project that

    The ood and Agricltre Organization

    o the united Nations calls the centra

    event o twentieth-centry dairying

    in India.

    To improve the efciency o

    dairy operations and streamline

    distrition to the fve cities it serves,

    the Mehsana District Cooperative

    Milk Prodcers union implemented

    Oracle E-bsiness Site 11. Now,

    inormation that was once exchanged

    on paper or over nreliale phone

    connections is sent over the internet.

    As a reslt, the time it takes to proces

    a prchase order has een redced

    rom 20 days to 3 days.

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    Oracle Volunteers Rebuild a

    School Devastated by the TsunamiAs the world watched in horror during

    the days ollowing the tsunami in South

    Asia on December 26, 2004, people

    everywhere thought: What can I do to

    help? For Oracle employees living and

    working near the devastated areas, as

    well as those living hal way around the

    world, the answer was simple enough.

    With Oracles help, the employees

    organized unds and relie eorts withinhours o a disaster that had let more

    than a million people homeless.

    The donations helped und initial relie

    eorts by specially trained disaster relie

    workers ocused on providing critical

    aid to survivors. In addition to monetary

    contributions, Oracle employees in the

    Asia Pacic region were able to volunteerto help rebuild some o the more

    devastated areas.

    One in particular is the Ban Bang Bane

    School in Thailand. The school was

    severely damaged, and Oracle sta in

    Thailand visited the Ranong Province

    to help rebuild the school. Fity-ve

    volunteers worked or several days

    to rebuild the school, which opened

    to 120 children and 20 teachers and

    sta in the new school year. We are glad

    that Oracle selected Ban Bang Bane

    School to repair ater the tsunami,

    says Manut Chansakul, principal.

    In March 2005, Oracle rebuilt two

    teacher housing units on school grounds.

    Most o the teachers are rom other

    provinces, and traveling to and romthe school is dicult. Beore the living

    quarters were rebuilt, teachers had to

    travel 15 kilometers between the school

    and town each day, Chansakul says.

    They are very appreciative and grateul to

    the Oracle volunteers who dedicated their

    time and eorts to help us out ollowing

    the disaster. Volunteers eorts in Marchmade it possible or the school to open or

    the second semester in May 2005.

    Oracle Thailand employees were

    pleased we had the opportunity to help

    reconstruct the school, says Khun

    Natasak Rodjanapiches, managing

    director or Oracle in Thailand. This

    eort will help ensure a brighter uture

    or these students, he said.

    ORACLEIN ACTION

    Stdents joined Oracle volnteers to

    reild classrooms ater the ban bang

    bane School was adly damaged y the

    tsnami o 2004.

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    ORACLEIN ACTION

    Think.com and WebPlay

    Promote Cross-Cultural LearningImagine a place where thousands o

    children can participate in an experience

    that promotes creative and cross-cultural

    collaboration and learning. Oracles

    Think.com teamed with WebPlay to

    create such a place, engaging students

    with technology and drama.

    The two programs are a natural

    t. Think.com, an online learning

    community hosted by Oracle Education

    Foundation, provides collaboration tools

    that allow students and teachers to share

    inormation within the protected site

    and post their work or other students

    to read and oer eedback. WebPlay,

    another online education program,

    enables primary school children

    to create and produce plays while

    collaborating with a proessional theatre

    company and students rom partner

    schools in dierent countries.

    We enable children rom contrasting

    communities to communicate,

    collaborate, and create, says Sydney

    Thornbury, WebPlays executive

    director. As part o WebPlay, students

    use Think.coms ree, online educational

    platorm to share ideas, exchange

    inormation, and develop plays while

    building technology skills.

    Last March, Think.com and WebPlay

    welcomed more than 250 Los Angeles

    students to the Skirball Cultural Center

    or a live perormance by the U.K.s Hoi

    Polloi Theatre Company. During the

    three-day event, more than 500 third-,

    ourth-, and th-grade students attended

    a play and special workshops to learn

    about drama and playwriting as part

    o WebPlays new education initiative,

    WebPlay L.A. Devised as a nine-month

    project, WebPlay L.A. students rst built

    Web pages in Think.com and conducted

    research with their partner schools

    to discover acts about one anothers

    neighborhoods. They explored themes

    such as where other students live and

    what makes their hometowns special.

    During the drama development phase,

    students interacted with Hoi Pollois

    actors, backstage teams, writers, and

    directors to learn how to develop plays

    rom page to stage. The students then

    attended a live perormance at Skirball

    Cultural Center, had lunch with their

    partner class, and participated in a

    workshop with the theatre company

    and WebPlay sta.

    The main ocus o the WebPlay

    program is on using technology

    to urther enhance the live theatre

    experience or young audiences,

    says Thornbury. Ater seeing a live

    perormance, the students returned to

    the classroom to create their own plays

    set in their partner school. The plays

    were perormed, digitally videotaped,

    and uploaded to Think.com.

    We chose Think.com because it is

    a antastic environment with tons o

    potential or collaborative learning.

    And it was so easy. None o us were

    techies, so it was great that the system

    could be learned quickly and easily by

    all, Thornbury says. Oracle is really

    providing access to technology or

    schoolsthere are no barriers.

    We enable children fr

    contrasting communitito communicate,

    collaborate, and create

    Together, Think.com and WePlay are

    reaking down cltral and geographical

    arriers etween teachers and stdents.

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    Oracle Academy Supports Teachers

    and Students WorldwideWhats the best way to give todays

    teenagers a competitive edge in the

    global marketplace? Oer them training

    in the worlds quickly expanding

    technology base. For the last six years,

    the Oracle Academy has hosted an

    annual event to help train secondary-

    school teachers around the world.

    Recently, the Academy brought that

    expertise to Egyptian educators who,

    along with their counterparts rom

    18 countries and 34 states, participated

    in the weeklong event at University

    o Caliornia, Los Angeles (UCLA).

    The proessional development orum

    helps teachers to prepare their students

    or uture academic and business success.

    Quality teacher training is critical to

    help educators incorporate technology

    into their broader curriculum, says

    Clare Dolan, vice president o Oracle

    Academic Initiatives.

    Prior to the proessional orum, parti-

    cipating teachers attend preliminary

    training sessions consisting o online

    classes, quizzes, weekly conerence

    calls, and ongoing e-mail dialogue with

    Academy mentors. During the orum,

    the teachers spend the week with Oracle

    sta and Oracle University instructors.

    The teachers then demonstrate their

    readiness to teach the curriculum by

    completing a project that challenges

    them to apply their new technical skills,

    as well as by passing an exit exam.

    Once theyve completed their training,

    teachers go back to their home schools

    and deliver the curriculum to their

    students. So ar, at least 360 Egyptian

    students and 10,000 students rom

    other countries have beneted rom

    the program.

    The Egyptian involvement is the result

    o a joint initiative between the Oracle

    Academy and Egypts Ministries o

    Education (MOE) and Communications

    and Inormation Technology (MCIT).

    The partnership demonstrates Oracles

    deep commitment to the successul

    development o IT in the region,

    says Ate Helmy, Oracles

    managing director or Egypt.

    This kind o training can have

    an invaluable impact on the next

    generation o business leaders.

    Ater just two semesters o

    study, Academy students gain

    database design, SQL, and project

    management skills that are

    applicable to a variety o technical

    jobs. For advanced students who

    wish to build upon those skills, an

    additional semester prepares them to

    complete the Oracle Certied Associate

    (OCA) 9i Developer certication

    providing a greater competitive edge

    in todays job market.

    Its been quite exciting to see new

    opportunities that have opened or

    my students as a result o their Oracle

    Academy experiences, says Robin

    Smith o Arnold R. Burton Technology

    Center, Roanoke County, Virginia.The

    real-world technical skills they learn

    boost their condence and give them a

    competitive edge or their uture.

    Its been quite exciting

    o see new opportunitieshat have opened for my

    tudents as a result of

    heir Oracle Academy

    xperiences.

    ORACLEIN ACTION

    Egyptian teachers joined conterparts rom

    arond the world at the Oracle Academy in

    Los Angeles, Caliornia.

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    ORACLEIN ACTION

    ThinkQest winner Amm Irivinti

    accepts her frst-place award rom

    Oracle President Sara Catz.

    Oracles ThinkQuest Promotes

    a Students War on AIDSWhen Ammu Irivinti accidentally

    bumped her head and it bled, one

    o her riends convinced her that

    she had contracted AIDS. Imagine

    Ammus relie to discover that she

    had been misinormed.

    The incident, which took place six

    years ago, also made Ammu realize

    that other kids might be as in the dark

    as she was. So, using her skills and

    interest in the online world, she created

    a Web site whose purpose is to inorm

    other children about the realities o

    the disease and its devastating eects.

    At 15, the young woman rom New

    Hampshirewho has helped raise

    more than $85,000 or children and

    young mothers with AIDSwas

    invited to speak at the United Nations

    as one o 50 students rom around

    the world to address issues o poverty

    and disease.

    Ammus initial online eort

    grew into an award-winning

    Web site that won rst placein the ThinkQuest student

    competitiona program

    sponsored by the Oracle

    Education Foundation. She

    viewed the competition as

    a new way to make an impact

    on the AIDS crisis and

    educate other kids about

    the history and current state

    o the disease. I thought

    that i people did something

    constructive we could solve this

    issue, says Ammu. The Web site

    gets 6,000 visits each month, an

    encouraging sign. Its rewarding

    to know that the eort is making

    people understand AIDS better.

    Ammu created an international team

    that worked together via e-mail and

    online chats to assemble the Web

    site. First she turned to her cousin,

    Kalanidheesh Medavaram, in India, who

    took charge o the content research

    and writing or the site. The rest o

    the team comprised students who had

    let comments in the orum on that

    original educational AIDS Web site,

    which she had created when she was

    nine. I enjoyed leading the team,

    even though I had never done this

    internationally, she says. The time

    dierences were denitely a major

    barrier, but we managed with online

    chat, e-mail, and an occasional

    phone call.

    Overcoming cultural barriers

    was a side benet to the site

    development. They can

    be overcome, says Ammu.

    You can work with anyone

    regardless o religion and

    race when you see that we are

    all people going or the same

    thing. That was the most

    valuable thing I learned.

    You can work with anyone regardless of

    religion and race when you see that we are all

    people going for the same thing.

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    ORACLEIN THE COMMuNITY

    Children in Zagre, Croatia, eneft rom

    an improved compter center, renovated

    y local Oracle employees.

    Oracle works actively to address

    community needs and improve quality

    o lie in the communities in which

    it does business. Preerring to solve

    problems rather than manage their

    consequences, Oracle and its employees

    ocus on bringing about positive

    change in our key areas: education,

    giving, community partnerships, and

    volunteerism.

    Oracle Education Initiatives

    Oracle believes in the power o

    education to create change. Oracle

    invests in math, science, and technology

    programs that target low-income

    communities and encourage the gited

    innovators o tomorrow. In addition,

    Oracle increases access to technology

    by providing resources, training, and

    curricula to academic institutions.

    The ability to use technology to learn

    and succeed in the twenty-rst century

    has become a new basic requirement

    or all students. Oracle has created

    a amily o education programs that

    leverages its core competencies in

    inormation technology and the

    internet. These include the ollowing:

    Oracle Education Foundation

    A nonprot unded by Oracle

    working in partnership with schools,

    governments, and other nonprots

    and NGOs to promote education

    with technology through select

    grants, research and evaluation,

    and its ThinkQuest and Think.com

    programs.

    ThinkQuest An international

    competition in which students andteachers are challenged to create

    educational Web sites and build

    understanding across cultures.

    Think.com A no-cost, advertising-

    ree, protected online environment

    or schools worldwide that provides

    a suite o tools or Web site publishing,

    research, discussion, and project

    collaboration.

    Oracle Academic Initiative

    A program in which Oracle provides

    state-o-the-art sotware and

    curricula or colleges and universities

    and trains educators to teach

    technical curriculum.

    c O m m i t m e n t

    Oracle will work in innovative ways to advance edcation programsthat prepare stdents or 21st centry technology demands.

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    rau/OracleschOOlOfmaths

    In association with RAu univer-

    sity in Johannesrg, Soth Arica,

    Oracle spports the development o

    mathematics in Sowetos second-

    ary schools. In the Satrday School

    program, condcted year-rond with

    more than 400 stdents rom Grades

    8 throgh 12, stdents are ttored in

    mathematics y RAu lectrers andsenior math stdents who also come

    rom disadvantaged ackgronds. The

    Winter School, a six-day intensive

    program or Grade 12 stdents, assists

    stdents with inal-exam preparation

    to improve their exam marks. both pro

    grams provide instrction, additional

    learning aids, lnch, and rereshments

    Stdents show some school pride

    at the Oracle-sponsored Rand

    Arikaans university School o Maths

    in Johannesrg, Soth Arica.

    Oracle Academy A partnership

    with secondary schools that educates

    students on the undamentals o

    database and Java technology, and

    equips them with interviewing,

    presentation, project management,

    and collaboration skills.

    Workorce Development Program

    A program that addresses the need

    or accessible and low-cost IT skills-

    training in local communities, withthe goal o preparing students or

    Oracle certication testing and career

    advancement opportunities.

    Oracle Giving

    Oracle Giving is committed to being

    a vital, contributing partner to the

    world community, building long-

    term alliances with nonpolitical,

    nonreligious, nonprot organizations

    to make a substantial impact on

    education, the environment, and

    medical research.

    Since its inception, Oracle Giving has

    supported projects with measurable

    outcomes in the areas o primary

    or secondary math, science, and

    technology education; environmental

    and endangered animal protection;

    and medical research or AIDS, cancer,

    and neuroscience. In addition, Oracle

    encourages employee community

    involvement through the Oracle

    Matching Gits Program, in which

    the company matches donations made

    by employees to eligible nonprot

    organizations.

    Oracle Giving works closely with

    partners who share our vision: to seek

    genuine intersections between the

    needs o society and the goals o our

    company, and make investments that

    benet both. Integral to this vision is a

    commitment to support communities

    around the world where Oracle

    has employees. By combining ourresources, strengths, and technology

    with those o our partners, we can

    make a visible dierence.

    c O m m i t m e n t

    Oracle will se or resorces to partner with organizations that striveto enrich the qality o lie in commnities arond the world.

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    0

    ORACLE IN THE COMMuNITY

    Indonesian children get a lesson rom

    an Oracle employee dring 2004 Oracle

    Gloal Volnteer Days.

    Oracle Volunteers

    Established in 1991, Oracle Volunteers

    provides opportunities or Oracle

    employees to actively address social

    needs and make a measurable,

    positive impact in the community.

    Oracle volunteers lend their time and

    talents to not only serve underserved

    populations, but also to enrich the

    quality o lie in the communities

    where we live and work. Volunteers

    teach basic saety and lie skills lessons

    to the blind, protect native habitatsor endangered wildlie, tutor and

    mentor disadvantaged youth, provide

    companionship or lonely and isolated

    elders, and build playgrounds and

    housing or low-income amilies to

    revitalize neighborhoods in transition.

    Oracle Volunteers engages employees

    in a variety o volunteer opportunities

    throughout the San Francisco Bay

    Area and worldwide. This year,

    Oracle employees at the companysheadquarters participated in over 85

    projects, logging over 3,400 volunteer

    hours to support Bay Area nonprot

    organizations. During Oracle Global

    Volunteer Days, a company-wide

    service initiative to urther Oracles

    commitment to social responsibility,

    more than 2,400 volunteers in 28

    countries contributed more than

    14,700 volunteer hours to benet local

    communities around the world.

    Oracle Community Partners

    Oracle is committed to the local

    communities in which its employees

    live and work. To complement Oracle

    Giving and Oracle Volunteers,

    Oracle created Community Partners

    to establish a local presence in each

    major U.S. community with an Oracle

    acility. This program gives Oracle

    the opportunity to interact with local

    government agencies and community

    planning commissions, participate

    in local chambers o commerce and

    community events, promote health

    and saety eorts such as supporting

    local reghters and police, and share

    company acilities such as conerence

    rooms with local nonprot agencies.

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    [ f a c t s ]

    Oracle Japan spported 127 nonproit

    organizations in Y05.

    ThinkQest was named best InternetSite or Kids y Common Sense Media.

    Since Octoer 2003, 1,100 teams made

    p o 4,750 international stdents rom

    42 contries have smitted entries to

    the ThinkQest competition.

    Think.com has 143,210 active

    sers in 3,140 schools in 18

    contries, with an Y05 grant

    vale o uS$1.4 million.

    rom Jne 2003 to May 2005,

    the Oracle Edcation ondation

    Grants program has delivered

    uS$1.3 million in cash and

    hardware, pls uS$600,000

    in services.

    The Oracle Academic Initiative crrently

    serves 331,558 stdents in 1,949

    instittions in 72 contrieswith

    growth in 2003 o 70 percent in Asia

    Paciic alone.

    Oraclelatinamericae-talent

    prOGram

    Oracle e-Talent is a stdent program

    developed y Oracle Latin America,

    in which stdents with siness and

    engineering ackgronds rom lead-

    ing Latin American niversities are

    recrited to work or Oracle dring

    their last year o stdy. Stdents come

    rom 10 Latin American contriesand receive technical training, project

    management and presentation train-

    ing, weekly meetings with an Oracle

    technical coach, reglar perormance

    evalations, and networking oppor-

    tnities with senior exectives. Once

    stdents gradate they may e invited

    to work ll time with Oracle or one o

    its siness partners.

    In Italy, Oracle staers pt their est

    oot orward y working with a local

    yoth soccer team.

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    Commitment to Accessibility

    Successul access to inormation by

    people with disabilities is known as

    accessibility. Accessibility is a

    signicant issue or a growing user

    population.

    Historically, users with disabilities

    have been provided customized

    solutions, but given state-o-the-art

    e-commerce applications with built-

    in color keys, drop-down menus,

    graphical user interaces that requirea mouse, and plug-ins that cant be

    translated by screen readers, custom

    solutions or individual users in an

    enterprise are no longer practical.

    Accessibility must now be integral to

    the basic design so that enterprise-

    wide solutions can accommodate the

    changing needs o users.

    Worldwide standards that dene

    accessibility are based on Section 508

    o the Rehabilitation Act (U.S.) andthe World Wide Web Consortiums

    Web Accessibility Initiative (WAI).

    Oracle began releasing products coded

    to Section 508 standards in 2001.

    Additionally, Oracle documentation

    is available in a variety o ormats,

    including HTML, plain text, and PDF.

    Work began in 2000 to ensure that

    documentation would be available in

    accessible ormat, in accordance with

    applicable Section 508 standards.

    However, in live technical

    implementations, Oracles products

    must oten interact with technology

    rom other vendorstechnology

    over which Oracle exerts no control.

    Accessibility may be a universal goal,

    but it is a shared responsibility across

    the hardware, sotware, and assistive

    technology industries. Oracles goal is

    to ensure that products and services are

    accessible to the disabled community

    with excellent usability. Industry

    standards will continue to evolve over

    time, and Oracle is actively engaged

    with other market-leading technology

    vendors in addressing technical

    obstacles.

    ORACLE IN THE COMMuNITY

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    [ f a c t s ]

    using the Oracle Think.com learning environment,

    more than 500 stdents in Northern Ireland and

    Soth Arica discssed the ook, th c

    taot an Arican girl who loses her leg in aland mineonline with the ooks athor and with

    one another.

    Oracle Giving donated uS$40,000 to the

    bck Institte to spport the next stage o

    Dr. Christopher benzs stdies involving the

    review and analysis o Marin Conty, Caliornia,

    reast-cancer cases, with a view to identiying

    nderlying cases.

    Oracle Giving donated uS$100,000 to

    the Ocean Conservancy, Inc. in spport

    o its contined partnership to spport

    the annal International Coastal

    Clean-up Day.

    Oracle Edcation Initiatives operates in

    80 contries arond the world, in over

    4,100 schools, with more than 428,000

    participantsand represents a grant

    vale o over uS$2.06 illion.

    The Oracle Academy has trained

    584 teachers and 13,125 stdents

    worldwide since 2001 and is crrently

    active in 525 instittions.

    Dring Gloal Volnteer Days, Oracle

    volnteers in Santiago, Chile, planted over

    300 trees in bosqe Santiago, a natral

    preserve in Chile.

    Oracle volnteers have a

    close relationship with the boys

    and Girls Cl o the Peninsla,

    where employees spend their

    o-hors working and playing

    with local yoth.

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    ORACLESGLObAL WORKORCE

    In an increasingly global economy,

    it is not surprising that a company

    that serves customers around the

    world would need sta to support

    those customerswherever they are.

    Oracle uses our resources to develop

    and deliver quality products and

    services to the global market. Oracle

    employs people around the world in

    global development, sales, and services

    in order to meet the needs o our

    customers. Using a geographically

    dispersed workorce allows Oracle and

    other global companies to continue

    to drive innovation, improve the

    economic status o workers around the

    world, and build the global economy.

    Additionally, customers running

    Oracle-based enterprise systems

    require access to technical support 24

    hours a day, 7 days a week, 365 days a

    yearoten delivered in the customers

    native language. Employing a global

    workorce allows Oracle to address

    these demands and ensure that our

    clients receive the level o attention

    they require to keep their mission-

    critical computing systems online.

    The number o employees by region

    and the revenue generated in those

    regions remain in balance.

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    Minority 39%

    Women 32%

    Women and Minority Management

    40% 26%

    34%

    u.s.minOritYemplOYees.tOtalu.sWOrkfOrce:

    Minority is deined as employees

    sel-identiied race or ethnicity.

    c O m m i t m e n t

    Oracle seeks to ild an inclsive workorce and work environment. We makeevery eort to attract, invest in, and develop the talents o a diverse grop opeople who relect the society and commnity in which we live. We welcome

    and spport people o all races, ethnicities, cltres, and religions, and seekto oster teamwork and eective partnerships among or employees.

    u.s.femaleemplOYees.tOtalu.s.

    WOrkfOrce

    u.s.minOritYandfemalemanaGers.tOtalu.s.manaGement

    Diversity

    Oracles diversity vision starts with

    cultivating an environment that is

    inclusive o all employees. Individual

    dierences present us with opportunities

    to examine business issues rom a

    variety o perspectives. Incorporating

    these dierent viewpoints gives us

    greater agility and creativity. The result

    is a workorce unied by common

    goals and strengthened by uncommon

    outlooks. Oracle believes that such an

    environment is necessary to eectively

    compete on a global scale. Valuing

    diversity by using eective communication

    skills and demonstrating mutual

    respect is simply good business. At

    Oracle, we are dedicated to realizing

    our diversity vision in our daily

    business practices worldwide.

    Diversity has enriched the business

    community in every quarter o the

    globe, promoting the underlying

    themes o tolerance and respect.However, the concept o diversity is

    not uniorm. Oracle acknowledges

    and embraces the cultural dierences

    that shape the varying international

    conceptions o diversity, as they

    maniest in law and in business. Our

    vision or diversity incorporates and

    provides or all such dierences, in

    the spirit o diversity itsel.

    An example o our commitment to

    building a diversied workorce is

    our multi-year education grant to the

    United Negro College Fund (UNCF).

    This grant provides cash, curriculum,

    teacher training, certication, and

    technology resources to the UNCF

    and its 39 member institutions.

    The grant is a response to the

    Technology Enhancement Capital

    Campaign, launched by the UNCF

    to give historically black colleges

    and universities access to advanced

    teaching and learning methods, and

    cutting-edge technology within degree

    programs. Oracles grant also unds a

    scholarship and internship program

    that helps students gain actual work

    experience across multiple disciplines.

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    ORACLES GLObAL WORKORCE

    Oracle at Work

    Oracle provides an ocial Code o

    Ethics and Business Conduct to its

    employees worldwide or their guidance

    in addressing the legal and ethical issues

    they encounter when conducting Oracle

    business. Although employment by

    Oracle is subject to terms and conditions

    established by local organizations,

    employees are required to abide by

    the standards set orth in this Code.

    These standards cannot anticipate

    every situation that may pose an

    ethical or moral issue, but Oracle

    expects each employee to exercise

    sound judgment when evaluating

    an issue o conduct. When in doubt,

    employees are encouraged to seek

    counseling prior to taking any action

    that may compromise either personal

    ethical standards or those o Oracle.

    To support employees in the pursuit o

    superior business ethics and conduct,

    Oracle has designed global courses, based

    on the Code, which new employees are

    required to take within the rst 30 days

    o employment. Both the Code and

    the courses have been translated into

    many languages. These courses include

    the ollowing:

    Ethics and Business Conduct

    A required online sel-study course

    that provides employees with

    inormation to aid them in

    understanding and abiding by the

    Code. It is oered in eight languages.

    Ethics and Business Conduct

    Supplemental A required course

    or employees involved with

    government and higher education.

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    Sexual Harassment Awareness

    An online sel-study course that

    provides employees with inormation

    about identiying, preventing, and

    reporting sexual harassment in the

    workplace. This course is oered in

    13 languages.

    Data Privacy Awareness A required

    eSeminar course that provides

    employees with inormation about

    the legislation and principles odata protection, including employee

    obligations related to data privacy.

    Oracle also maintains a Compliance

    and Ethics Helpline and Web site to

    assist employees who have witnessed

    or suspect a violation o Oracles Code

    o Ethics and Business Conduct and

    allow them to report the situation

    condentially and anonymously.

    Deviations rom our business conduct

    standards are not tolerated.

    Disciplinary action is taken against

    any individual who is ound to have

    authorized, condoned, participated

    in, or concealed actions that are in

    violation o these standards; against

    any manager who disregards or

    approves a violation, or who, through

    lack o diligence in supervision,

    ails to prevent or report violations;

    and against managers who retaliate,

    directly or indirectly, or encourage

    others to retaliate against an employee

    who reports a potential violation o

    these standards.

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    ORACLES GLObAL WORKORCE

    Oracle provides a variety o training

    programs designed to support

    employee knowledge and skills

    development. These programs are

    designed to help our workorce

    perorm productively and eectively

    in current job roles as well as prepare

    employees or uture challenges. On

    average, employees complete at least

    one week o ormal internal training

    each year, and technical and sales

    employees typically receive up to our

    weeks o ormal training each year.

    Oracle oers a variety o technical,

    proessional, and personal development

    training through a number o

    learning media. Oracle Universitys

    global internal training Web site

    provides online Oracle technology

    training courses. Courses are ree or

    employees and are oered both as live

    and archived presentations. The site

    also provides on-demand access to

    Oracles Compliance Program courses,

    educating employees about Oracle

    corporate policies and how to report

    conduct that deviates rom Oracles

    policy standards.

    Employee Training and Development

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    thestandardssetfOrthintheOraclecOdeOfethicsandBusinesscOnductareGOvernedBYthefOllOWinGBusinessvalues:

    Integrity Oracle employees demonstrate honesty and sond ethical ehavior in all

    siness transactions and personal integrity in all dealings with others.

    Mtal Respect Oracle employees consistently treat individals with respect

    and dignity.

    Teamwork Oracle employees work together as a team or the collective interests

    o Oracle.

    Commnication Oracle employees share inormation widely and eectively with

    one another, except when conidentiality is reqired.

    Innovation Oracle employees seek innovative and creative approaches to

    prolem solving.

    Cstomer Satisaction Oracle employees consistently treat cstomer satisaction

    as a top priority.

    Qality Oracle employees make excellence and qality a part o their day-to-day

    work processes and seek continos improvement in all that they do.

    airness Oracle employees are committed to dealing airly with cstomers, sppliers,

    and one another.

    Compliance Oracle employees comply with all laws and reglations that govern

    Oracles siness.

    bsiness Condct Oracle employees oserve the standards that have een estalished

    y Oracle and act ethically in their approach to siness decisions.

    Oracles Code o Ethics and bsiness Condct can e ond at

    oracle.com/corporate/investor_relations/codeoethics.pd

    OraclesuppOrtsGlOBalemplOYees

    Oraclerevenue.WOrkfOrceBYreGiOn

    rgo %or %oWooAmericas 48.84% 49.99%

    Erope, 36.37% 24.89%

    Middle East,

    Arica

    Asia Paciic 14.79% 25.12%

    Oracle volnteers spend

    the day with children rom the

    orm or Street Children in

    Hyderaad, India.

    Gloal HR services frm Hewitt Associates named

    Oracle India one o the 25 best Employers in its

    best Employer Srvey 2004.

    A DataQest srvey placed Oracle in its

    Top 10 Employers or 2004.

    Oracles Arican Operations region was named the

    2005 Employer o the Year y af iv.

    CCTV, Chinas national television network, recog-

    nized Oracle China as one o the contrys

    Top 10 Employers in 2005.

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    0

    ORACLE AND PRIVACY

    In todays digital age, where inormation

    is the new currency, the protection o

    personal data and assurance o identity

    on the internet are important elements

    o corporate policy. These protections

    need to be deployed in the policies and

    practices o the company as well as in

    the technologies that support them.

    Oracle has implemented corporate

    privacy polices and practices to protect

    the personal inormation o its customersand employees. As part o the companys

    international policy advocacy, we are

    active participants in intergovernmental

    initiatives to improve the state o privacy

    protection and develop workable policy

    solutions and best practices. There is an

    emerging understanding that workable

    solutions need to provide eective

    privacy protections to consumers and

    citizens while enabling the necessary

    and responsible inormation fows that

    are the basis o todays digital economy.We are working with other industry

    participants as well as governments

    and nongovernmental organizations

    to develop solutions that help us reach

    both o these objectives.

    Oracle technology also plays a role in

    privacy protection. Privacy, by its very

    nature, is subjective. Our individual

    sensitivities about how our inormation

    is treatedor what it is used and with

    whom it is sharedare not uniorm.

    Furthermore, the need to use inormation

    varies across business process and

    business types. A doctor will have

    more personal inormation that will

    be used, and possibly shared with

    other medical practitioners, than will

    an auto mechanic. The nature o the

    job and the inormation processes

    associated with that job dictate what

    is reasonable and necessary. In light o

    this need or tailoring technology to

    support a variety o business practices

    and inormation preerences, Oracle

    provides tools that our customers can

    congure to help support their own

    privacy policies and practices.

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    GOVERNANCE

    The Oracle group o companies

    consists o 183 companies in 79

    countries. As a U.S.-based, publicly

    traded corporation, Oracles goal is

    to comply with the laws o the United

    States and the laws o each country

    in which it conducts business.

    Oracle provides detailed public

    accounting and analyst inormation.

    We also provide inormation about

    Oracles values and vision; the Boardo Directors and Board Committees;

    Oracle executives; and Oracles business

    ethics or employees, partners, and

    suppliers.

    Sarbanes-Oxley Regulations

    In the United States, the Sarbanes-

    Oxley Act ormalizes corporate

    accountability or nancial reporting

    and disclosure o internal business

    controls and processes. Enacted in

    2002, this regulation undamentally

    changes the way U.S.-based businesses

    report nancial inormation and

    the way that boards and executives

    discharge duciary responsibility.

    As a U.S.-based corporation, Oracle

    believes we are in compliance with

    Sarbanes-Oxley regulations. Additionally,

    Oracle creates products and solutions

    designed to help other companies

    comply with the letter and spirit o

    Sarbanes-Oxley by increasing the control

    and eciency our customers have over

    their critical business inormation and

    improving their nancial transparency.

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    Oracles Corporate Governance

    Principles

    Oracles Board o Directors has

    developed corporate governance

    practices to ulll its responsibilities

    to Oracle shareholders. As part o these

    practices, the Board adopted a set o

    corporate governance guidelines to

    help ensure that it has the necessary

    authority and procedures in place to

    oversee the work o management andto exercise independence in evaluating

    Oracles business operations. These

    guidelines include policies regarding:

    Director Qualications

    A Nomination and Governance

    Committee assesses potential Board

    members based on their independence,

    character, and acumen.

    Director Responsibilities The

    basic responsibility o the directors

    is to exercise their business judgment

    and act in a manner they believe is in

    the best interest o the company and its

    shareholders. Board members attend

    the Annual Meeting o Shareholders,

    Board meetings, and meetings o

    committees on which they serve.

    Director Compensation The

    Compensation Committee determines

    the orm and amount o director

    compensation annually, in accordance

    with the policies and principles set

    orth in its charter.

    Chie Executive Ocer Evaluation

    The Compensation Committee

    conducts an annual review o the CEOs

    perormance and compensation.

    Board Evaluation The Board, led

    by the Nomination and Governance

    Committee, periodically conducts a

    sel-evaluation to determine whether

    the Board and its committees are

    unctioning eectively.

    Oracles Corporate Governance

    Guidelines can be ound at

    oracle.com/corporate/investor_

    relations/corpgov.pd

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    GOVERNANCE

    Conict o Interest

    Oracle maintains a Confict o

    Interest policy to help senior ocers

    and directors identiy and properly

    address potential conficts o interest

    involving the company. Conficts

    include situations when a director or

    senior ocer has a personal nancial

    interest in a transaction entered into by

    Oracle or by an entity doing business

    with Oracle, or situations when theyintend to exploit an opportunity

    that rightully belongs to Oracle.

    This policy includes the ollowing

    procedures:

    Duty to Disclose Directors or

    senior ocers must promptly

    disclose any actual or possible

    confict o interest.

    Determining Whether a Confict

    Exists Ater disclosure o all

    material acts related to the potential

    confict o interest, the appropriate

    individual or committee will decide

    whether or not a confict exists.

    Investments by Senior Ocers

    Although senior ocers o the

    company may invest in third parties

    as part o their personal investment

    strategy, they may be in violation o

    this policy i they invest in any o

    Oracles portolio o companies or in

    entities that materially compete with

    any part o Oracles business.

    Service on Boards o Directors

    No senior ocer may serve onthe board o directors or advisory

    board o any company, other

    than a nonprot entity, without

    the approval o the CEO and the

    Executive Management Committee.

    The Independent Committee must

    approve an appointment to the

    board o a public company.

    Oracles Confict o Interest policy

    can be ound at oracle.com/corporate/

    investor_relations/coip.pd

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    In addition, Oracle was a major

    supporter o the Measure A hal-

    cent sales tax approved in November

    2004 by voters in San Mateo County,

    Caliornia. This measure will raise

    US$1.5 billion to und public

    transportation initiatives, improve

    trac fow, and reduce highway

    congestion.

    Recycling Programs

    Almost since its ounding, Oracle

    has had a ormal program to recycle

    the waste byproducts ound in most

    oce environments: computers, paper,

    CDs, bottles, cans, cardboard, toner

    cartridges, batteries, and more. Bins

    are labeled and placed in convenient

    locations to encourage recycling, and

    it is truly a way o lie or Oracle

    employees.

    As we strive to deepen our

    environmental commitment, we

    undertake more aggressive initiatives

    such as an organic-waste recycling

    program at our HQ acilities. We

    intend to reproduce this pilot program

    in regions around the world.

    Monitoring Greenhouse

    Gas Emissions

    Oracle was the rst sotware

    company to volunteer or the U.S.

    Environmental Protection Agencys

    (EPA) Climate Leaders program. This

    industry/government partnership

    requires companies to develop long-

    term, comprehensive climate-change

    strategies; set greenhouse gas (GHG)

    emissions-reduction goals; inventory

    their emissions to measure progress;

    and monitor and report progress to the

    EPA as climate-change policy continues

    to unold. Oracle will achieve our

    reduction goals almost entirely

    through more ecient energy use.

    OracleandtheenvirOnment

    In 2005, Oracle was No. 2 on the u.S.

    Environmental Protection Agencys Top

    20 best Workplaces or Commters.

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    ORACLE AND THE ENVIRONMENT

    In Leanon, Oracle employees work to

    improve the health o local orests.

    Oracle is also a ounding member

    o the Sustainable Silicon Valley

    Initiative, an organization whose

    members seek to reduce greenhouse gas

    emissions to the levels recommended

    by the Kyoto Protocol.

    Oracles voluntary commitment to

    reduce greenhouse gas emissions

    extends well beyond common practice

    in its industry, and the company will

    continue to explore ways to reduce itsimpact on the environment.

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    O r a c l e u . k . s i s O 1 4 0 0 1 c e r t i f i c a t i O n

    Oracles environmental practices in the u.K. are a model or Oracle oices arond the

    world. Oracle u.K. implemented an Environment Management System in March 2004

    and ecame ISO 14001-certiied in Jne 2004. The ISO (International Organization or

    Standardization) 14001 certiication addresses environmental managementwhatan organization does to minimize the potentially harml environmental eects

    cased y its activities. Initiatives estalished y the u.K. oice inclde measres to

    redce the environmental eects rom transportation, ozone-depleting rerigerants,

    and hazardos waste. In addition, Oracle u.K. has committed to redce electricity,

    gas, and water se over two years. Oracle acilities arond the world are adopting

    similar programs and practices.

    [ f a c t s ]

    by centralizing the companys distrition systems to a ew regional centers

    eliminating 24 distrition operationsand y implementing electronic distrition

    as the standard y which cstomers receive oth prodct and docmentation,

    Oracle has signiicantly redced its consmption o paper, cardoard, and other natral

    resorces. The company has also minimized the amont o resorces reqired to

    transport prodct to sers arond the world.

    Ater moving to electronic models o docmentation distrition in 1998, Oracle has

    redced the amont o printed docmentation it ships y more than 96 percent.

    Oracle employees collect trash at

    San ranciscos Ocean beach or

    Oracle Gloal Volnteer Days.

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    0

    ORACLEAND ENERGY MANAGEMENT

    c O m m i t m e n t

    Oracle mst extend energy-saving eorts to all regions so that the sameenergy-perormance criteria apply to all Oracle acilities.

    Oracle is working to decrease its

    environmental impact by reducing

    the amount o energy it uses to heat,

    cool, light, and maintain its corporate

    oces. In addition to adopting simple

    conservation measures such as turning

    o monitors overnight, reducing

    lighting in hallways and stairwells,

    and replacing incandescent lighting

    with fuorescent lights, Oracle also

    incorporates cutting-edge energy-

    saving eatures in the design and

    construction o new acilities.

    Using Renewable Power

    Oracle recognizes the importance

    o using renewable sources o energy.

    As part o the U.S. Environmental

    Protection Agencys (EPA) Green

    Power Partnership Program, Oracle

    pledged to purchase power rom

    renewable sources such as wind, solar,

    and geothermal or its Austin, Texas,

    data center. Because Oracle committed

    to purchasing more than 10 percent

    o its power or the data center rom

    renewable sourcesar more than the

    minimum 3 percent required to be a

    certied Green Power partnerthe

    EPA has honored it with membership

    in the Green Power Leadership Club.

    The Austin data center was designed

    to include modern energy-saving

    eatures such as an airfow management

    system that adjusts airfow according

    to the number o servers running.

    This allows center managers to use the

    minimum amount o power necessary

    or maintaining suitable conditions orthe equipment.

    Rising to the Challenge

    Because energy management is a

    global issue, Oracles conservation

    eorts extend across all regions.

    During the Caliornia energy crisis

    o 20002001, or example, Oracle

    implemented stringent conservation

    and eciency measures. As a result,

    the company was able to cutenergy usage at its Redwood Shores

    headquarters by 10.5 percent in

    2001and has continued to achieve

    savings o 9.3 percent, 11.5 percent,

    and 12.4 percent in 2002, 2003,

    and 2004, respectively.

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    [ f a c t s ]

    rom 2000 to 2003, the average monthly se o electricity y each Oracle employee at

    headqarters decreased y 20 percent. Alternatively, measred on a per-sqare-oot

    asis, the redction or that period was 10 percent.

    Dring power emergencies, Oracle is now capale o redcing real-time energy se at

    company headqarters y p to 18 percent.

    Conservation paysin more than one sense. Oracles energy-eiciency measres not

    only eneit the commnity and the environment, t also allowed the company to

    save aot uS$2.5 million rom 2001 to 2003.

    datacenter

    becase Oracle committed to prchasing

    more than 10 percent o its power or

    the Astin, Texas, data center rom

    renewale sorcesar more than

    the minimm 3 percent reqired to e

    a certiied Green Power partnerthe

    EPA has honored it with memership in

    the Green Power Leadership Cl.

    The Natural Resources Deense

    Council (NRDC), in a study o how

    Caliornia companies responded to thestatewide energy crisis o 20002001,

    cited Oracle or its eorts to reduce

    energy demand through acilities

    improvements and policy changes.

    Oracle has also equipped its

    headquarters acilities to reduce

    peak-time power demand by up

    to 18 percent during power

    emergencies. In this way, Oracle

    is attempting to do its part to help

    the community avoid rollingpower outages.

    The company has also hired a Director

    o Energy to oversee its ongoing energy

    management eorts. This refectsOracles commitment to investigating

    and implementing creative solutions to

    the global energy challenge.

    .

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    Q: Why is Oracle producing this report now?

    a: Oracle has a long history o doing good work in the communities it serves

    around the world, but we havent talked about it very much. While this

    report is not a comprehensive listing o our contributions to the community,

    we hope the eorts weve highlighted will provide a sense o what we do

    and encourage even more people to get involved.

    Q: How does this report intersect with what is known as

    Corporate Social Responsibility?

    a: There has been a growing interest in corporate responsibility and citizenship

    issues in recent years, generally reerred to as Corporate Social Responsibility

    (CSR). However, CSR has traditionally ocused on issuessuch as downstream

    labor conditions in the supply chain or waste disposal rom heavy manuacturers

    that the enterprise sotware and services industry doesnt really ace. Yet

    Oracle does ace a number o challengessuch as workorce preparation,

    security, privacyand must consider the needs o our customers, employees,

    and host communities.

    What you will nd here is a report that refects the issues o the enterprise

    sotware industry as opposed to initiatives you might nd in a report rom

    a consumer brand or a manuacturing enterprise. Customers, employees,

    partners, shareholders, and community representatives are increasingly asking

    or this type o inormation. We already have the programs in placeso were

    now making the inormation more accessible.

    Q + AORACLE PRESIDENT SARA CATZ

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    Q: Is a companys approach to corporate citizenship at odds

    with its fnancial success?

    a: Absolutely not. Being a responsible corporate citizen does not mean losing

    ocus on the interests o our shareholders. It means nding intersections between

    the needs o our communities and the goals o our company and making

    investments that benet both. It also means using our technology to advance

    interests in the community.

    For example, Oracles Academic Initiative has provided technical training in

    72 countries around the worlda US$1.3 billion investment in the uture

    prospects o more than 300,000 students. This program not only lays the

    groundwork or many successul careers, but it helps us expand the pool o

    talent available to support Oracle solutions or our customers. Its a great

    example o how good social investment makes good business sense.

    Weve made similar investments in our environmental surroundings. Weve

    invested in new equipment and changed our business practices to encourage

    the ecient, environmentally sound use o energy and resources. As a result,

    weve reduced our energy usage at Oracle headquarters or each o the past

    three years. Were also using more than 10 percent renewable energy to power

    our main data center. We earned back our investment in equipment upgrades

    in eight months and are now able to reduce our real-time energy use by up to

    18 percent in case o power emergencies.

    Our success is magnied by a good relationship with our neighborsthe

    customers, partners, and residents o the cities where we operate. We dont shy

    away rom supporting the issues that are important to our communities.

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    Oracle Corporation

    Worldwide Headquarters

    500 Oracle Parkway

    Redwood Shores,

    CA 94065

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