For the first quarter ended September 30, 2009:

Revenue was $12.2 million, an increase of 3% compared to $11.9 million for the first quarter of last fiscal year.

Net income was $1.3 million, or $0.07 diluted earnings per share, compared to net income of $1.3 million, or $0.07 diluted earnings per share, for the first quarter of last fiscal year.

On a non-GAAP basis, as described below, Pervasive realized net income of $1.6 million, or $0.08 diluted earnings per share, compared to net income of $1.8 million, or $0.09 diluted earnings per share, in the first quarter of last fiscal year. Non-GAAP results exclude amortization of purchased intangibles and stock-based compensation expense, and assume a non-GAAP effective tax rate of 34%.

Pervasive continued to generate positive cash flow from operations with $1.2 million in the first quarter of fiscal 2010, ending the quarter with approximately $40.4 million in cash and marketable securities. As previously announced, Pervasive invested approximately $2.6 million in cash in the September quarter to acquire assets of Greenville, South Carolina-based ChanneLinx, Inc., a privately held business-to-business Web-based data interchange technology company. In addition, Pervasive acquired approximately 258,000 shares of Pervasive common stock on the open market at a total cost of approximately $1.3 million, or approximately $5.08 weighted average price per share, during the quarter ended September 30, 2009. The Company has $7.6 million authorized repurchase funds remaining under its $10.0 million stock repurchase program announced in March 2009. Depending on market conditions and other factors, such purchases may be commenced or suspended at any time without prior notice. Issued and outstanding shares of common stock as of September 30, 2009 totaled approximately 17.9 million.

"It's a privilege to lead a team with such an enviable track record of execution and profitability," said John Farr, president and CEO of Pervasive Software. "Our two flagship offerings, the embedded Pervasive PSQL database and our data integration line, continue to deliver market-leading value for partners and customers. In addition, the company closed one relatively large transaction with a database customer representing approximately $2.4 million in revenue during the September quarter. Pervasive's tenacious focus on profitability allows us to fund acquisitions such as the ChanneLinx transaction and exciting innovation in our flagship products, in our Innovation Labs initiatives, and in new technologies including Pervasive DataRush and Pervasive DataSolutions."

Business Outlook

As previously stated in guidance provided on October 1, 2009, Pervasive expects revenue for the second fiscal quarter ending December 31, 2009 to be in the range of $11.0 million to $12.0 million and GAAP-basis diluted earnings per share of $0.04 to $0.07, compared to $11.2 million revenue and $0.06 diluted earnings per share for the December quarter of the previous fiscal year.

GAAP-basis profitability is expected to include amortization of purchased intangibles and stock-based compensation expense representing approximately $0.6 million, pre-tax, in the second quarter of fiscal year 2010. The company expects non-GAAP adjustments to result in non-GAAP diluted and fully taxed earnings per share of approximately $0.05 to $0.08 in the December quarter, compared to $0.07 non-GAAP diluted and fully taxed earnings per share for the December quarter of the previous fiscal year.

Regularly Scheduled Earnings Release Conference Call -- October 20, 2009

Pervasive will provide the full financial results for its first quarter ending September 30, 2009 in its regularly scheduled earnings release conference call on October 20, 2009 at 5:00 P.M. Eastern time. The dial-in numbers for the call are 877-808-2426(toll-free) or 973-200-3975 (international). The conference name is "Pervasive Software Inc." The conference call may also be accessed live over the Web at http://investor.pervasive.com/events.cfm. Check the Web site before the call for login information. Replay will be available 8:00 P.M. Eastern Tuesday, October 20, to midnight, Tuesday, October 27, by dialing800-642-1687 (toll-free) or 706-645-9291 (international), and selecting Conference ID 31480749. Additionally, the Webcast will be archived on Pervasive's Web site at http://investor.pervasive.com/events.cfm.

About Pervasive Software

Pervasive Software (NASDAQ:PVSW) helps companies get the most out of their data investments through embeddable data management, agile data integration software and by enabling revolutionary next-generation analytics. The embeddable Pervasive PSQL database engine allows organizations to successfully embrace new technologies while maintaining application compatibility and robust database reliability in a near-zero database administration environment. Pervasive's multi-purpose data integration platform accelerates the sharing of information between multiple data stores, applications, and hosted business systems across a broad range of diverse integration scenarios, including prepackaged out-of-the-box integration solutions. Pervasive DataRush is an embeddable high-performance software platform enabling data-intensive processing applications such as claims processing, risk analysis, fraud detection, data mining, predictive analytics, sales optimization and marketing analytics. For more than two decades, Pervasive products have delivered value to tens of thousands of customers in more than 150 countries with a compelling combination of performance, flexibility, reliability and low total cost of ownership. Through Pervasive Innovation Labs, the company also invests in exploring and creating cutting-edge solutions for the toughest data analysis and data delivery challenges. Robin Bloor, founder of Bloor Research and partner at Hurwitz and Associates, recently cited Pervasive as one of the 10 IT Companies to Watch in 2009. For additional information, go to www.pervasive.com.

About Non-GAAP Financial Information

This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the section entitled "About Non-GAAP Financial Measures" and the accompanying tables entitled "Reconciliation of GAAP Measures to Non-GAAP" and "Reconciliation of Forward-Looking Guidance."

Cautionary Statement

This document contains forward-looking statements that involve risks and uncertainties concerning the company, including the company's expected performance for the second quarter ending December 31, 2009, and the company's strategy and profitability going forward. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These risks and uncertainties include, among others, the company's ability to attract and retain existing and/or new customers; the company's ability to issue new products or releases of solutions that meet customers' needs or achieve acceptance by the company's customers; changes to current accounting policies which may have a significant, adverse impact upon the company's financial results; the introduction of new products by competitors or the entry of new competitors; the company's ability to preserve its key strategic relationships; the company's ability to hire and retain key employees; and economic and political conditions in the U.S. and abroad. All of these factors may result in significant fluctuations in the company's quarterly operating results and/or its ability to sustain or increase its profitability. Additional information regarding these and other factors can be found in Pervasive's reports filed with the Securities and Exchange Commission, including its Form 10-K for the fiscal year ended June 30, 2009. Pervasive is not obligated to update these forward-looking statements to reflect events or circumstances after the date of this document.

All Pervasive brand and product names are trademarks or registered trademarks of Pervasive Software Inc. in the United States and other countries. All other marks are the property of their respective owners.

 Pervasive Software Inc.