Pervasive Software Announces $10 Million Share Repurchase Authorization

Pervasive Software(R) Inc. (NASDAQ:PVSW), a global leader in embeddable data management and data integration software and in enabling scalable data-intensive applications, today announced that its Board of Directors authorized a new $10 million stock repurchase plan.

As of July 27, 2010, Pervasive Software Inc. (the "Company") has acquired approximately 345,000 shares of the Company's common stock on the open market at a total cost of approximately $1.7 million, or approximately $4.89 price per share, during the quarter ending September 30, 2010. The Company has now utilized the majority of the authorized repurchase funds under its $10 million stock repurchase program announced in March 2009 and this program is now closed. The Company's Board of Directors has approved a new stock repurchase plan effective immediately, whereby the Company may repurchase additional shares of its common stock with a value of up to $10 million. Depending on market conditions and other factors, such purchases may be commenced or suspended at any time without prior notice.

During the eighteen fiscal quarters since March 31, 2006, the Company has acquired approximately 8.9 million shares of its common stock on the open market at a total cost of approximately $37.7 million, or approximately $4.19 price per share. Total issued and outstanding shares of common stock has decreased over this period of time with approximately 16.8 million shares issued and outstanding as of July 27, 2010, compared to approximately 23.2 million shares issued and outstanding as of March 31, 2006. In addition, employee and director stock options outstanding as of July 27, 2010, including both "in-the-money" and "out-of-the-money" options, totaled approximately 2.4 million, a reduction compared to stock options outstanding as of March 31, 2006, of approximately 4.2 million.

"I am pleased with the results of our share repurchase program over the past four years," said John Farr, president and CEO of Pervasive Software. "In each of the eighteen fiscal quarters since April 1, 2006, we have consistently returned equity to our shareholders while reducing our combined total shares issued and outstanding and the potential dilution represented by our outstanding stock options by 30%. And, even with $38 million invested in our share repurchase program over the past four years, we still maintained a significant absolute cash position. Our consistent profitability and positive cash flow from operations have allowed us to substantially reduce our total shares and options outstanding while also maintaining a very healthy balance sheet and enabling us to strategically invest in our flagship products, our emerging products and our new innovation initiatives for the future. The newly authorized share repurchase program reflects our continued confidence in the future of the business while also providing us a vehicle through which we can continue to return value to our shareholders."

About Pervasive Software

Pervasive Software (NASDAQ:PVSW) helps companies get the most out of their data investments through agile and embeddable software and cloud-based services for data management, data integration, B2B exchange and analytics. The embeddable Pervasive PSQL™ database engine provides robust database reliability in a near-zero database administration environment for packaged business applications. Pervasive's multi-purpose data integration platform, available on-premises and in the cloud, accelerates the sharing of information between multiple data stores, applications, and hosted business systems and allows customers to re-use the same software for diverse integration scenarios. Pervasive DataRush™ is an embeddable parallel dataflow platform enabling data-intensive applications such as claims processing, risk analysis, fraud detection, data mining, predictive analytics, sales optimization and marketing analytics. For more than two decades, Pervasive products have delivered value to tens of thousands of customers in more than 150 countries with a compelling combination of performance, flexibility, reliability and low total cost of ownership. Through Pervasive Innovation Labs, the company also invests in exploring and creating cutting edge solutions for the toughest data analysis and data delivery challenges. Robin Bloor, Chief Research Analyst and President, The Bloor Group and Founder, Bloor Research, recently cited Pervasive as one of the "10 IT Companies to Watch in 2010." For additional information, go to www.pervasive.com.

Cautionary Statement

Statements made in this press release regarding the Company's share repurchase program and future cash balances are forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among other things, sufficient shares may not be available at appropriate prices, alternative uses may develop for the Company's funds, and market and other conditions may change. These factors are not intended to be an all-encompassing list of applicable risks and uncertainties. Additional information regarding these and other factors can be found in Pervasive's reports filed with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended March 31, 2010. In providing forward-looking statements, the Company expressly disclaims any obligation to update publicly or otherwise these statements, whether as a result of new information, future events or otherwise.

All Pervasive brand and product names are trademarks or registered trademarks of Pervasive Software Inc. in the United States and other countries. All other marks are the property of their respective owners.

Pervasive Software Inc. (MM) (NASDAQ:PVSW)
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