Tally Introduces the T9134T, Its Second `PeerlessPowered' Continuous Form Page Printer Announced in Two Months.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Dec. 21, 1998--

The Second in the Family of PeerlessPowered Printers to Combine Page

Printing With Line Printing for High-Volume Applications

Peerless Systems Corp. (Nasdaq:PRLS) Monday announced the recently introduced T9134T Wide Web Dual Tractor Laser Printer by Tally Printer Corp., containing the PeerlessPage imaging environment, PeerlessPrint 5E and Peerless' QuickPrint 1700 graphics imaging coprocessor.

The T9134T is the second member of the Tally family of printers that combines page printing using PeerlessPrint 5E (an emulation of HP PCL5e) with Line Printer emulation and optional IBM IPDS emulation. This product is a 34-page-per-minute (ppm) laser printer designed for printing bar code labels, direct mail pieces, customer statements or reports on virtually any type of continuous-form media.

The T9134T, powered by Tally's Cascade controller that utilizes a 66Mhz RISC processor and Peerless' QuickPrint 1700 imaging coprocessor, has been designed for high performance and optimum productivity.

Controlling the Cascade controller is the PeerlessPage Object-Based Imaging System, a flexible imaging environment in which a multitude of printer emulations have been integrated, including the PeerlessPrint 5E, MT660, Printronix P6000, Code V/PGL and optional IBM IPDS.

Along with hot, auto switching parallel and serial ports, the Cascade controller includes the Peerless Standard I/O (PSIO) interface for a variety of network connectivity including 10/100BaseT ethernet and IBM System Interface Module for twinax/coax.

"Peerless' imaging architecture provided a powerful foundation to engineer printers that function as both PCL5 lasers and Tally line matrix printers. Together, the T9134T and the T9230T make up a very cost-effective family," said Val Maddox, product manager of Systems Lasers at Tally. "The PeerlessPage architecture also enabled us to very efficiently and effectively address the many language emulations required by a wide variety of market applications."

"We are pleased to continue to partner with Tally to meet the product requirements for their market," said Ron Davis, director of marketing at Peerless. "The combination of Peerless' page printing expertise with line printing requirements once again demonstrates the flexibility and versatility of our PeerlessPage imaging architecture."

About Peerless Systems

Peerless Systems is a leading provider of software-based embedded imaging systems to Original Equipment Manufacturers (OEMs) of digital document products. Digital document products include printers, copiers, fax machines, scanners and color products, as well as multifunction products that perform a combination of these imaging functions.

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 embedded imaging system. The Peerless family of products and engineering services enable OEMs to develop digital printers, copiers and multifunction products quickly and cost effectively using such popular products such as Peerless' emulation of HP (NYSE:HWP) PCL languages.

Among Peerless' customers are blue chip companies such as Canon (Nasdaq:CANNY), IBM (NYSE:IBM), Kyocera (NYSE:KYO), Minolta, Ricoh, Samsung, SeikoEpson, Tally, Tektronix (NYSE:TEK), Xerox (NYSE:XRX), and other international corporations.

Peerless holds strategic partnerships with Adobe (Nasdaq:ADBE), Agfa, Emulex (Nasdaq:EMLX), IBM Microelectronics, Motorola (NYSE:MOT), the NetSILICON division of Osicom (Nasdaq:FIBR), Rockwell (NYSE:ROK) and other technology leaders.

Peerless is located at 2381 Rosecrans Ave., El Segundo, Calif. 90245. Main telephone: [phone]; facsimile: 310/536-0058; www.peerless.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include the following: the fact that the company's markets are characterized by rapidly changing technology, evolving industry standards and frequent introductions of new products and enhancements, and the company's ability to respond to such changes; difficulties which the company may experience in completing the development of turnkey designs for OEM customers, its color technology or other products; the fact that the multifunction and color markets targeted by the company are at an early stage of development; the highly competitive nature of the markets for the company's products; the company's ability to attract and retain skilled personnel; the company's reliance on third-party suppliers for components used in the company's products; the quarterly variability in the company's bookings and design wins; and the company's reliance on a relatively small number of OEM customers for a large percentage of its revenue. These and other factors, which could cause actual results to differ materially from those in the forward-looking statements, are also discussed in the company's filings with the Securities and Exchange Commission, including its recent filings on Form 10-K, Form 10-Q and Form S-1.

Note to Editors: Peerless, Peerless Systems, PeerlessPage, PeerlessPrint, PeerlessPowered, AccelePrint, All-Pages-Print, MultiPrint, PicturePrint, QuickPrint, SyntheSys and WinEXPRESS are trademarks of Peerless Systems Corp. Memory Reduction Technology (MRT) is a registered trademark of Peerless Systems Corp. PostScript is a registered trademark of Adobe Systems Inc. PCL is a registered trademark of Hewlett-Packard Co. All other brand and product names are trademarks or registered trademarks of their respective owners.