Next-Generation Pervasive Security Model to Define Data Management in Mission- Critical Applications

Application Developers Can Embed Data Security Solutions for Increased Integrity, Accountability, and Availability of Data

AUSTIN, Texas, Oct. 14, 2003 -- Pervasive Software(R) Inc. (Nasdaq: PVSW), a leading provider of data management solutions powering the success of application developers worldwide, today announced the availability of next-generation data security offerings, designed to power and enhance business-critical applications around the world.

As part of this announcement, Pervasive is launching new versions of three products. Pervasive.SQL(TM) V8 Security, Pervasive AuditMaster(TM) v6.0 and Pervasive DataExchange(TM) v2.5 combine to help directly address security challenges related to integrity, accountability and availability throughout the life cycle of data.

-- Data Integrity - Pervasive.SQL offers a unified security model across data access methods enabling advanced control and rights management at the data level. The latest database edition provides enhanced encryption of data during transmission and storage. These features improve the integrity of the data by reducing operating system and network data vulnerabilities.

-- Data Accountability - Pervasive AuditMaster provides transaction intelligence through the use of an audit trail and allows proactive monitoring of data access with customizable alerts, as well as tracking of who did what, when, where and how. This allows customers to log and analyze database activity, improving accountability by tracing data activities back to named users.

-- Data Availability - Pervasive DataExchange delivers near real-time database replication and synchronization from a production database to one or more backup databases. This improves the availability of data by reducing data loss or downtime due to server crashes or site disasters.

Pervasive's new embedded security solution helps protect data from source to destination through enhanced encryption on the wire and tighter security at the operating system and file level.

"With much of the industry distracted by cyber security, the unaddressed and often unprotected treasure is the valuable data stored within applications," said David Sikora, president and CEO, Pervasive Software. "Small and medium-sized enterprises require a low administration and cost- effective security solution in order to protect data against cyber threats, fraud, errors and natural disasters. Our data security offerings, combined with Pervasive's data management expertise, help our customers develop, launch and profitably maintain their applications. The data is the crown jewel that needs to be protected."

Data security is no longer just a check on an IT wish list, but is critical to the viability of a business itself. Robin Bloor, research director of Baroudi Bloor and president of Bloor Research, one of the world's leading IT analyst and consultancy organizations, recently authored an executive white paper on data security and uses statistics to illustrate the close relationship between data security and business viability. He references a University of Texas Center for Research on Information Systems report which indicates that for companies that lose data in a disaster, 50 percent never reopen and 90 percent go out of business within two years of the event. This conclusion is dramatic but for many businesses data is a major asset and its loss is likely catastrophic.

"The conclusion for companies that experience data loss is obvious: for many businesses, data is a major asset and its loss is likely to be catastrophic," Bloor said. "In addition, data security legislation around the world is tightening up to the point where not implementing data security will soon be too big a business risk to contemplate."

To download a copy of Bloor's white paper, go to Pervasive's Web site, .

One of the many Pervasive customers not only concerned with the security risk but ready to act on implementing a solution is Resource & Financial Management Systems, Inc. (RFMS). With a customer base exceeding 2000 clients, RFMS is a leading provider of business management tools for retailers. After previewing the data security offerings from Pervasive, RFMS recognizes the importance of these solutions to companies faced with growing competitive pressures.

"Securing data at the core database level is no longer a nice to have but a must have," said Terry Wheat, president and CEO, RFMS. "Our customers run their entire business on our application and, by extension, the Pervasive.SQL database. Because the database contains the essence of their operation, including customer relationship information, employee data and accounting files, preventing loss or misuse of the data is of great importance. The additional security features within Pervasive.SQL, as well as the other new Pervasive security products, are attractive to my customers to ensure the integrity of their precious data."

Pricing and Availability


Pervasive.SQL V8 Security single seat desktop workgroup engines are priced at US $25. Pricing for full client/server engines starts at US $845 for a six-user license. Volume discounts and upgrade pricing are also available.

Pervasive DataExchange

Pervasive DataExchange v2.5 real-time backup edition for workgroup engines is priced at US $995 and for server engines is priced at US $4,995. The data synchronization edition will be released at the same time with similar pricing.

Pervasive AuditMaster

Pervasive AuditMaster v6.0 is available immediately and priced at $2,995 for the server edition with a special introductory price of US $1,495 until the end of the calendar year. AuditMaster requires Pervasive.SQL V8 server and works on Windows NT4/2000/2003.

About Pervasive Software

Pervasive Software is a leading global data management company powering the success of application developers by providing solutions that deliver the industry's best combination of performance, reliability and low administration costs. Pervasive's strength is evidenced by the size and diversity of its customer base, serving tens of thousands of customers with hundreds of thousands of end-users in nearly every vertical market around the world. Founded in 1994, Pervasive sells its products into more than 150 countries and is based in Austin, Texas, with offices in Europe. More information may be found on the Web at .

Cautionary Statement

This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally preceded by words such as "may," "plans," "expects," "believes," "anticipates," "estimates" or "intends." All forward-looking statements included in this document are based upon information available to Pervasive as of the date hereof, and Pervasive assumes no obligation to update any such forward-looking statement. Investors are cautioned that actual results could differ materially from Pervasive's current expectations. Factors that could cause or contribute to such differences include the risk that the security software does not achieve market acceptance, that the future plans with respect to the security software do not materialize and the factors and risks discussed in Pervasive's reports filed from time to time with the Securities and Exchange Commission including, without limitation, the risk that Pervasive may face problems in connection with license arrangements, the risk that Pervasive may face problems in connection with product line expansion, the risk that Pervasive depends on third-party technology in its products, and the risk that current revenues are substantially dependent upon continued market acceptance of and revenues from the company's Pervasive.SQL, Pervasive AuditMaster and Pervasive DataExchange products.

Pervasive, Pervasive Software, Btrieve, Pervasive.SQL, Pervasive DataExchange and Pervasive AuditMaster are trademarks or registered trademarks of Pervasive Software Inc. All other company and product names may be trademarks or registered trademarks of their respective companies. All rights reserved worldwide.

     Contact:  Marian Kelley
               Director of Corporate Communications


SOURCE Pervasive Software Inc.

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