ANTs software inc. Completes $13 Million Private Financing From New and Existing Investors.

BURLINGAME, Calif. -- ANTs software inc. (OTCBB:ANTS), a leader in compatible, high-performance SQL database management systems, today announced that it has raised $13 million through a private offering of units of common stock and convertible notes to accredited investors. The funds, from a combination of new and existing investors, will be used for general working capital purposes including: research and development, customer support and marketing and sales.

Each $50,000 unit is comprised of 14,285 shares of common stock at a price of $1.75 per share, and a convertible, ten percent promissory note with an initial face value of $25,000 and convertible into 12,500 shares of common stock at a conversion price of $2.00 per share. As a result, the company will issue an aggregate 3,714,100 shares of common stock and $6.5 million in promissory notes. The promissory notes and shares of restricted common stock sold were not registered under the Securities Act of 1933, as amended (the "Act"), were sold in reliance upon Rule 506 and Section 4(2) of the Act and may not be offered or resold absent registration or an applicable exemption from registration requirements.

In connection with this private placement the company will pay $1,140,000 in cash commissions and will issue 210,360 shares of common stock of the company to a placement agent. Additionally, in the event the promissory notes are converted into shares of common stock of the company, the company will issue an additional 183,980 shares of common stock to the placement agent.

This press release is neither an offer to sell, nor a solicitation of offers to purchase, securities.

"This financing should enable us to build on the Oracle, SQL Server and Sybase compatibility already in the ANTs Data Server, while maintaining our focus on high-performance database management," said Joseph Kozak, president and chief executive officer. "We are building relationships with large partners who can sell and support our technologies, and believe that together, we can have a big impact in the database market."

About the ANTs Data Server

The ANTs Data Server is a full-featured, standards-compliant relational database management system based on a breakthrough, high-performance SQL query execution engine that incorporates innovative lock-free operations. It can typically be deployed on fewer, low-cost servers with the potential to reduce hardware, software and system administration costs by 60 to 90 percent. Through its compatibility with Oracle, Sybase, and SQL Server databases, and its embedded deployment mode that supports Oracle-TimesTen applications, the ANTs Data Server allows applications to be moved without the major rewrites and cost usually associated with application migration.

ANTs software inc.

ANTs software inc. (OTCBB:ANTS), based in Silicon Valley, develops and sells the ANTs Data Server, an affordable, high-performance relational database that is compatible with popular databases. The company's mission is to help customers reduce hardware, software and development costs by providing exceptional database price/performance. For more information on ANTs Software, visit www.ants.com.

This press release is neither an offer to sell, nor a solicitation of offers to purchase, securities. This shareholder letter contains forward-looking statements within the meaning of the federal securities laws, including statements concerning product development activities and sales and licensing activities. Such forward-looking statements are not guarantees of future performance, are sometimes identified by words of condition such as "should," "may," or "intends," and are subject to a number of risks and uncertainties, known and unknown, that could cause actual results to differ materially from those intended or anticipated. Such risks include, without limitation: challenges arising from competition, difficulties experienced in product development, problems securing the necessary financing to continue operations, roadblocks experienced in sales and marketing activities, longer than expected sales processes, failure to develop any of the intended partner relationships or to have any of them sell or support our current or intended products, difficulties in recruiting knowledgeable and experienced personnel, possible problems in porting applications to the Company's database, and potential problems in protecting the Company's intellectual property, among many others. Further information concerning these and other risks is included in the Company's filings with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2006. The Company undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances occurring after the date of this press release.