Progress Software Named to Forbes 200 Best Small Companies List for Second Consecutive Year.

Progress Ranks as Best Application Infrastructure Provider and Climbs 28 Spots in Annual Ranking of World's Most Successful Companies

BEDFORD, Mass. -- Progress Software Corporation (Nasdaq: PRGS), a global supplier of application infrastructure software used to develop, deploy, integrate and manage business applications, today announced that it has been recognized as one of the 200 Best Small Companies by Forbes magazine. Progress, which is the only Massachusetts-based software company or application infrastructure provider on the list, moved up 28 spots to #148 this year.

According to the October issue of Forbes, the companies on this year's list are "Small, but growing, businesses designed to survive the ups and downs of market volatility." Other prestigious leading public companies making the list include Idexx Laboratories, Noegen, Interactive Data, Micros Systems and Tetra Technologies. The entire Forbes 200 Best Small Companies list can be viewed online at: http://www.forbes.com/lists/2006/23/biz_06200best_The-200-Best-Small- Companies_Company.html (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

The annual Forbes 200 Best Small Companies list is a compilation of financially successful small-cap businesses. In order to be considered for the Forbes 200, companies must have revenue between $5 million and $750 million, net profit margins greater than five percent and share prices above $5 as of September 29, 2005.

"As evidenced by our ascent in the Forbes 200 Best Small Companies list, Progress Software continues its growth by expanding into new markets with innovative technology applications," said Bud Roberston, CFO of Progress Software. "We continue to be at the forefront of next generation technologies, such as service-oriented architecture and event stream processing, providing our customers and partners with powerful applications to meet their business needs. With a successful acquisition track record and long history of sustained organic growth with 21 consecutive quarters of year-on-year revenue growth, Progress is well positioned to capitalize on current and emerging market trends."

Today's announcement is the most recent in a series of honors that Progress Software has received in 2006 including:

* Intelligent Enterprise named Progress one of the top 12 most influential technology companies. In awarding Progress the publication's Editors' Choice Award, Intelligent Enterprise noted that Progress' "enterprise service bus (ESB), process management, SOA and other new technology for event stream processing enables organizations to rise above the chaos and respond to changing business conditions as never before."

* Boston Globe included Progress Software in "Globe 100," its list of top performing companies in Massachusetts for the fourth year in a row. Progress moved up six spots to # 42 on this year's list.

* SD Times included Progress in the SD Times 100, declaring Progress a winner in the "SOA & Integration" and "Data & Host Integration" categories. SD Times noted that Progress "recognized the significance of data stream processing to the ability to analyze and report business activity, and acted upon in."

About Progress Software Corporation

Progress Software Corporation (Nasdaq: PRGS) is a global industry leader providing application infrastructure software for all aspects of the development, deployment, integration and management of business applications. Headquartered in Bedford, Mass., Progress can be reached at www.progress.com or [phone].

Progress is a registered trademark of Progress Software Corporation in the United States and other countries. Any other trademarks or service marks contained herein are the property of their respective owners.