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PERVASIVE ACQUIRES SMITHWARE
Leading Embedded Database Provider Adds
Comprehensive Development Suite and Developer Expertise

AUSTIN, TEXAS -- February 18, 1998 -- Pervasive Software™, Inc. (NASDAQ:PVSW), a leading developer of embedded databases for small- to mid-size businesses, today announced that it has acquired privately held Smithware™, Inc., a Nashville, Tennessee-based developer of database development and reporting components for Pervasive products.

The acquisition brings Pervasive a suite of database development, analysis, and reporting products, including ActiveX controls and an OEM version of Crystal Reports, plus extensive component development expertise. Smithware's products streamline packaged application development by eliminating the need to write low-level code to interface with leading development and reporting tools like Visual Basic, Visual Café, Visual C++, and Delphi.

"Smithware's expertise in Pervasive products and its own highly successful development and reporting components are a terrific asset to Pervasive and its more than 5,000 ISVs and OEMs," said Ron Harris, president and CEO of Pervasive. "In the coming months, we'll leverage this expertise to further integrate Smithware products with Pervasive databases and industry-leading development environments to provide a comprehensive development solution. These efforts will make it even easier for developers to use Pervasive databases to deliver fast, reliable, and easy-to-use packaged client/server applications."

Smithware products are used by thousands of developers worldwide to build applications on Pervasive databases. Smithware, a Pervasive company, will continue to market and resell its products through a transition period, after which their products will be integrated into Pervasive's solutions.

Scott Smith, founder, president, and CEO of Smithware, will become director of Pervasive's Developer Relations Group. Smith will lead an expanded program supporting relationships with Pervasive's worldwide developer base. He will also work with Pervasive's engineering team to coordinate new product development efforts with evolving user needs. Smith, who has more than ten years of development and management expertise, is also the founder and publisher of the Btrieve® Developer's Journal, a leading source of news and information on Pervasive-related products and services. The Developer Relations Group will be based in Nashville, Tenn.

"The combination of Visual Café™ for Java™ IDE and Smithware's development tools provides a complete solution for developing Java based applets and applications for Pervasive databases," said Allen Bannon, director of developer relations at Symantec.

About Pervasive Software

Pervasive Software Inc. is a leading provider of embedded database software for the cost-effective deployment and support of low-maintenance, packaged client/server applications. The company's Pervasive.SQL database engine is well suited for integration by software developers building reliable, scalable and rapidly deployable business critical applications. Pervasive products enable independent software vendors (ISVs) and value added resellers (VARs) to deliver packaged client/server applications that provide robust functionality and low overall cost of ownership to end users. The company's channel-driven approach to selling, marketing, and supporting its products caters to the specific needs of ISVs, VARs, in-house development organizations and the small- to mid-sized companies they serve.

Headquartered in Austin, Texas, Pervasive Software offers worldwide distribution, with offices in Frankfurt, Paris, London, Brussels, Dublin, Tokyo, and Hong Kong. For more information on Pervasive call (800) 287-4383 or (512) 794-1719, visit the World Wide Web at http://www.pervasive.com, or email info@pervasive.com.

About Smithware

Smithware offers an extensive suite of database development and reporting products for the Pervasive database engine, including an Internet database solution, ActiveX controls, Crystal Reports, and other utilities for database definition (DDF creation and maintenance), advanced development, and data analysis. Smithware's products make Pervasive's databases easier to use and more effective within packaged software applications.

Additional details of the acquisition will be discussed in detail at The 1998 Pervasive Software Partner Conference on March 15-18.

Read Scott Smith's letter announcing Pervasive's acquisition of Smithware by opening or downloading Smithmsg.doc (Word 97 document, 126K).


Pervasive Software, Pervasive.SQL, Scalable SQL, InstallScout and Btrieve are trademarks of Pervasive Software Inc. All other company and product names are trademarks or registered trademarks of their respective companies.