Peerless Systems Extends Length and Reach of Adobe PostScript with New License Agreement.

Business Editors/High-Tech Writers

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Jan. 29, 2004

Peerless Systems Corporation (Nasdaq:PRLS), a provider of imaging and networking controllers to the digital document market, today announced a new three-year extension through July 2007 to its agreement with Adobe Systems Inc. for the worldwide licensing of Adobe(R) PostScript(R) technologies including Adobe PDF (Portable Document Format) printing technologies. A supplement to the agreement now authorizes Peerless to license Adobe PostScript products for manufacture in the People's Republic of China (PRC) and Taiwan.

"This extension is a strong endorsement of our relationship with Adobe," said Howard Nellor, president and chief executive officer, Peerless. "Peerless will continue as a major licensor of Adobe PostScript for embedded and server-based applications to OEMs worldwide. This new agreement, coupled with Peerless 'Partner-to-Develop(TM)' customer relationship program, gives imaging vendors of printers and MFPs more opportunities to use new technologies and off shore manufacturing options for their products."

Adobe PostScript works with every major operating system and color management program, offering customers device-independent color support and other advanced features to produce consistent, accurate output across a range of office and professional publishing devices. Peerless offers OEMs a "one-stop shop" for all their Adobe PostScript needs, from software development kit (SDK) licensing and certification, to custom porting services and opportunities for licensing Adobe PostScript in high performance multifunction products. The Peerless Systems Imaging Products (PSIP) division has devoted a significant amount of our engineering resources at our Peerless Systems Imaging Products (PSIP) division towards Adobe PostScript integration services. Under the Peerless Partner-to-Develop program, Peerless licenses technologies including the Adobe PostScript SDK to OEMs while they maintain control over their product development to maximize product differentiation and offer enhanced features and performance.

"For over 10 years, Adobe has worked with Peerless to provide Adobe PostScript for building high performance printing systems and workflow solutions," said Don Walker, General Manager of the Publishing Technologies and Services Group, Adobe Systems. "With its longstanding OEM relationships, Peerless is uniquely positioned to deliver genuine Adobe PostScript worldwide."

Every major OEM uses Adobe PostScript in all or part of their imaging product line. Over the last five years, OEMs have shipped over 350,000 units of Peerless-sourced Adobe PostScript and continue to ship additional units daily.

About Peerless Systems Corporation

Founded in 1982, Peerless Systems Corporation is a provider of imaging and networking controllers to the digital document markets, which include manufacturers of color, monochrome and multifunction office products and digital appliances. In order to process digital text and graphics, digital document products rely on a core set of imaging software and supporting electronics, collectively known as an imaging controller. Peerless' broad line of scalable software and silicon offerings enables its customers to shorten their time-to-market and reduce costs by offering unique solutions for multiple products. Peerless' customer base includes companies such as Canon, IBM, Konica/Minolta, Kyocera, Legend, OkiData, Ricoh, Seiko Epson and Xerox. Peerless also maintains strategic partnerships with Adobe, IBM Microelectronics, and Novell. For more information, visit the Company's web site at www.peerless.com.

Editor's Note: Peerless and Partner-to-Develop are trademarks of Peerless Systems Corporation. Adobe, PostScript and PDF are registered trademarks of Adobe Systems Incorporated.

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995

This Release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The use of such words as well as words of similar effect in connection with or related to any discussion of or reference to future operations, opportunities or financial performance set apart forward-looking statements. In particular, statements regarding the Company's outlook for future business, financial performance and growth, profitability, product availability and potential applications and successes and the impact on future performance of organizational and operational changes all constitute forward-looking statements.

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