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NASDAQ COMPANY AND CHIEF EXECUTIVE OFFICER NAMED IN CROSS-COMPLAINT

 SAN FRANCISCO, June 30 /PRNewswire/ -- Gupta Corp. (NASDAQ-NMS: GPTA), a NASDAQ publicly traded computer systems software developer and manufacturer with headquarters in Menlo Park, Calif., has been sued in a cross-complaint by Pan Pacific Solutions Pty Ltd. ("PPS"), an Australian company, over an alleged breach of a distribution contract.
 PPS's $20-million countersuit, filed in California Superior Court, San Mateo County, also names Umang P. Gupta, Gupta's president, chief executive officer and chairman of the board, and Richard J. Heaps, its general counsel and corporate officer, as cross-defendants.
 PPS had been Gupta's exclusive Australian distributor since 1989, with the distributorship later extended to cover New Zealand, Hong Kong, Singapore and Malaysia. Adrian Ballintine, PPS' managing director and chairman of the board, stated that the basis for PPS' action is Gupta Corp.'s failure, as alleged in the cross-complaint, to abide by a new distribution agreement that the parties entered into earlier this year.
 Stated Ballintine, "We allege that we reached a firm agreement with Gupta to continue our distributorship, which had been very profitable for both our organiztions, through at least 1995 and possibly 2001. We also allege that after its initial public offering in February, Gupta used the pretext of a claimed `late payment' by us to renege on the deal, resulting in real and very substantial damage to PPS.
 "Throughout the distribution period, through PPS' activities, Gupta's client server based products have gained a significant market share in the Asia Pacific region, including some of its largest customers on a world-wide basis," stated Ballintine. "In connection with these activities, PPS had used the trade name 'Gupta Asia Pacific,' a move that was fully sanctioned by Umang Gupta."
 PPS' cross-complaint alleges that the new agreement extended the existing relationship for another three years with an option for two additional three-year extensions. It further alleges that, following Gupta's initial public offering, Gupta wrongfully denied the existence of the new agreement and thereafter refused to ship additional products to PPS.
 PPS is now seeking at least $20 million in lost profits plus unspecified punitive damages against the Gupta corporate and individual cross-defendants.
 Gupta had earlier filed for an injunction against PPS' continued use of the name "Gupta" and for recovery of amounts allegedly owed by PPS. On June 1, the court issued a preliminary injunction prohibiting PPS' use of the "Gupta" name pending trial, but otherwise permitting PPS to continue with its normal course of business, including the sale of all remaining Gupta products that PPS has in inventory and the provision of PPS consulting services involving Gupta and other software products.
 -0- 6/30/93
 /CONTACT: Thomas V. Loran III of Pillsbury Madison & Sutro, 415-983-1865, for Gupta/
 (GPTA)


CO: Gupta Corp.; Pan Pacific Solutions Pty Ltd. ST: California IN: CPR SU:

TB-SG -- SF019 -- 7462 06/30/93 20:47 EDT
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Publication:PR Newswire
Date:Jun 30, 1993
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