[2] Milberg Weiss Files Class Action Suit Against Pervasive Software Inc. and Its Officers and Directors Alleging Misrepresentations and Insider Trading.

SAN DIEGO--(BUSINESS WIRE)--Nov. 9, 1999--

Milberg Weiss (http://www.milberg.com) today announced that a class action has been commenced in the United States District Court for the Western District of Texas on behalf of purchasers of Pervasive Software Inc. ("Pervasive") (Nasdaq:PVSW) common stock during the period between July 15, 1999 and October 21, 1999 (the "Class Period").

The complaint charges Pervasive and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that after its initial public offering in September 1997, Pervasive stock traded in the $9-$15 range as Pervasive's revenue and earnings showed little growth in the first two quarters it reported as an independent company. By October 1998, the Company's stock price was trading at just $8.50 per share. The Company then began to move its focus more to Internet-related tools and saw its stock price increase to above $18 per share. On July 15, 1999, Pervasive reported strong revenues and earnings and strong networking revenues. In a conference call after the release, Pervasive management discussed its new product ("Tango"), its new focus on Internet-related products and touted the Company's prospects. As a result of defendants' statements, Pervasive's stock price was inflated during the Class Period. Top officers of Pervasive took advantage of these inflated share prices, selling 492,250 shares for proceeds of $11 million over the next two weeks following these statements. By October 1999, Pervasive's stock was trading at as high as $38 per share. However, Pervasive's business and prospects were not nearly as favorable as defendants had represented. On October 21, 1999, Pervasive issued a press release announcing its 1stQ F2000 results. Later that day, Pervasive held a conference call and admitted that its results for the 2ndQ F2000, ended December 31, 1999, would be much worse than earlier represented and that costs of the development of Tango-related sales would cause losses in F2000 instead of forecasted profits of $.50. On these shocking disclosures, Pervasive's stock price declined $24-1/16 to $12 per share on enormous volume of 11.8 million shares, a 67% decline in one day.

Plaintiff seeks to recover damages on behalf of all purchasers of Pervasive common stock during the Class Period (the "Class"). The plaintiff is represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 30 years. The firm has offices in New York, San Diego, San Francisco, Los Angeles and Boca Raton and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from November 4, 1999. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at [e-mail].