California Software Announces Increased Revenues Q-2, 2001.

Business Editors and High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--July 26, 2001

California Software Corp. (OTC BB:CAWC), a leader in IBM Midrange migration products and developer of the award-winning BABY, Unibol and MLPS product lines, announced significant sales growth on a year-to-year basis.

Kevin Gadawski, Vice president, Finance, California Software, stated: "While we are still finalizing our numbers we know that we will produce significant sales gains from this period last year. Given the general economic climate, we are very pleased with these results."

"We began a program of cost-cutting while remaining focused on revenue growth. These results, combined with first quarter, where we dramatically reduced costs and enjoyed sales growth of over 170% suggest our plan is working," said Bruce Acacio, CEO, California Software.

About California Software Corp.

With headquarters in Irvine, and with offices in Richmond, Va., Belfast, Ireland and Brussels, Belgium, California Software Corp. is the developer and marketer of the BABY, Unibol and MLPS brand names that support the migration of AS/400-based applications to Windows, Unix and Linux, a Graphical interface/Web enablement product family and loan processing applications for financial institutions. California Software enjoys more than 100,000 installations in 56 countries and is in use by such customers as IBM, Unisys, Caterpillar, Volvo, DHL Worldwide and BMW Motors.

This news release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. Such statements can usually, but not always, be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "intends" or the negative of such terms or comparable terms. These statements are only predictions and actual results could differ materially from those anticipated in these statements based upon a number of factors including those identified in the company's filings with the SEC. Investors are cautioned that all forward-looking statements involve risks and uncertainties of the industry in which the company operates and/or proposes to operate, including without limitation, uncertainties of product sales and product development, market acceptance of the company's products, the impact of competitive products and technological innovation, product returns and defects, product obsolescence, availability of qualified personnel, dependence on third party suppliers, success or failure of strategic business alliances, acquisitions or other business combinations, new or amended laws and regulations applicable to the company, general market conditions, and other risks. These forward-looking statements are made in reliance on the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended.