Class Action Lawsuit Commenced Against Pervasive Software Inc. by Bernstein Liebhard & Lifshitz, LLP.

NEW YORK--(BUSINESS WIRE)--Nov. 17, 1999--

A securities class action lawsuit has been commenced on behalf of purchasers of the common stock of Persuasive Software Inc. (NASDAQ:PVSW) ("Persuasive Software" or the "Company"), between July 15, 1999 and October 21, 1999, inclusive (the "Class Period"), in the United States District Court for the Western District of Texas.

The complaint charges Pervasive Software and certain of its directors and executive officers with violations of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the defendants issued materially false and misleading statements about the Company's business, finances and prospects and failed to disclose material information throughout the Class Period in the Company's public filings and public statements. As a result of these misrepresentations and omissions, the price of Pervasive Software's common stock was artificially inflated throughout the Class Period. A number of the Company's insiders took advantage of the inflated stock price to sell huge amounts of their own shares in the Company, reaping more than $11 million in proceeds from their insider sales.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Pervasive Software common stock during the Class Period.

If you purchased or otherwise acquired Pervasive Software securities during the Class Period and either lost money on the transaction or still hold the stock, you may wish to join in the action to serve as lead plaintiff.

In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than 60 days from November 4, 1999.

Plaintiff has selected Bernstein Liebhard & Lifshitz, LLP to represent the Class. The attorneys at Bernstein Liebhard & Lifshitz, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors.

If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Mr. Mark Punzalan, Director of Shareholder Relations at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, [phone] or [phone] or by e-mail at [e-mail].