California Software Corp. Announces Plans to Buy Back Stock.

Business Editors & High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--Jan. 4, 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, Thursday announced that its board of directors has authorized the repurchase of up to 100,000 shares of the company's common stock on the open market.

The timing and amounts of any stock repurchase will depend on many factors, including the market price of the common stock, overall market conditions and at the sole discretion of management.

Bruce Acacio, CEO of California Software, commented: "At current price levels, we believe our stock is undervalued. It is our belief that repurchase of California Software common stock is in the best interests of our shareholders and will provide significant value over the long term."

California Software remains committed to adding value to its shareholders and Business Partner family members by remaining the leader in B2B, e-commerce and graphical solutions for the IBM Midrange market. The company's family of products, marketed under the brand names BABY, Unibol and MLPS, represent technological advances which are designed to make them easy to use and rapid to deploy at competitive prices.

About California Software Corp.

With headquarters in Irvine, and offices in Atlanta, Richmond, Va., Belfast, Ireland, and Brussels, Belgium, California Software is the worldwide leader in IBM Midrange migration software solutions and a leader in Financial Services Software.

The company's products, marketed under the brand name BABY, Unibol and MLPS, support the migration of IBM AS/400 screens and applications to Windows and the Web 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 Caterpillar, Volvo, DHL Worldwide, BMW Motors, Conseco and Bancomer.

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.