California Software Places Unicomp Distribution Agreement on Credit Hold, Exerts Ownership Rights and Control Over Unibol Products.

Business Editors & High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--July 26, 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 has suspended its nonexclusive distribution agreement with Unicomp (Pink Sheets:UCMP) for nonpayment.

"California Software is the owner of the Unibol 36 and Unibol 400 products and we cannot provide product nor support to Unicomp any longer. Under our May 1 settlement agreement, California Software would grant Unicomp a nonexclusive distribution agreement in the United States. Unfortunately, Unicomp has licensed the product and billed for support that cannot legally be provided.

"Further, we haven't received a penny from Unicomp under the terms of the agreement," said Carol Conway, president of California Software. Conway continued, "We must exercise our ownership rights to the Unibol products and assert our control in the United States market. We welcome the Unibol customers to the California Software family and look forward to servicing them now and in the future."

California Software's technical support and sales offices in Irvine can be reached at 949/553-8900, e-mail the company at [e-mail] or visit the company at www.Californiasoftware.com.

About California Software Corp.

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

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