California Software Announces Plans to Expand European Operations.

Business Editors & High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 28, 2001

California Software Corp. (OTCBB:CAWC), a leader in IBM Midrange migration products and developer of the award-winning BABY, Unibol and MLPS product lines, today announced that it will be expanding its European operations.

"We continue to see growth opportunities in both domestic and European units. While most of our competitors are contracting during this economic slow down, California Software continues to see significant revenue growth. We are moving slowly and cautiously, but there are opportunities that are coming to fruition from our European hub in Belfast which make it crucial to expand our sales, support and development team," said Bruce Acacio, CEO, California Software.

About California Software Corp.

With headquarters in Irvine and offices in Richmond, Va. and Belfast, Ireland, California Software 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.