EXHIBIT 99.1
Persistence Software, Inc.
1720 South Amphlett Boulevard
San Mateo, California 94402 [Persistence logo]
650 372 3600 * 650 341 8432 Fax
www.persistence.com
Press Release
Contact: Professional Investment Community and Media
- -------- -------------------------------------------
Christine Russell Joe Diaz or Joe Dorame
Chief Financial Officer RCG Capital Markets Group, Inc.
Persistence Software, Inc. 480.675.0400
650.372.3648
russell@persistence.com
PERSISTENCE SOFTWARE REVERSE STOCK SPLIT
EFFECTIVE JUNE 12, 2003
SAN MATEO, CALIF. -- JUNE 11, 2003 -- Persistence(R) Software (NASDAQ:
PRSW), a provider of data services software for distributed data access and
management, today confirmed the board of directors decision to proceed with a
1-for-10 reverse stock split, after the stockholders overwhelmingly approved the
reverse split proposals at the annual meeting of stockholders of the company
held on June 5, 2003. The company believes that the immediate effect of the
reverse split would be to increase the trading price of the company's common
stock so that the company would be able to maintain compliance with Nasdaq
SmallCap Market listing requirements. The reverse stock split is scheduled to
take effect June 12, 2003, at which time Persistence will temporarily trade
under the ticker "PRSWD" to signal to stockholders and the public that the
company has implemented a reverse stock split. After 20 trading days, trading
will resume under the ticker "PRSW".
Christopher Keene, chief executive officer of Persistence Software,
Inc., commented, "We believe that a reverse stock split that maintains our
Nasdaq listing, providing the continued value of Nasdaq's liquidity and
visibility, will send a message to our employees, customers and shareholders
that we are confident in our business strategy for Data Services."
As of June 12, 2003, stockholders will be entitled to receive one newly
issued share of common stock for each 10 shares then held. No fractional shares
of common stock will be issued as a result of the reverse stock split. Rather,
each holder of common stock who would otherwise receive a fractional share of
common stock will be entitled to receive an equivalent amount of cash in lieu of
fractional shares, based on the average of the closing sales price over the ten
trading days prior to June 12, 2003.
Shortly after the effective date, stockholders will receive
instructions regarding the method of exchanging the old stock certificates for
new stock certificates. Stockholders need not do anything with their share
certificates until they receive such instructions. U.S. Stock Transfer
Corporation of Glendale, California is the Company's transfer agent and will act
as the exchange agent for the purpose of implementing the exchange of stock
certificates in relation to the reverse stock split.
ABOUT PERSISTENCE
Persistence Software provides to Global 2000 companies the Data Services
infrastructure to create real-time, highly scalable applications without
incurring the high costs of additional hardware and replicated databases. Data
Services addresses a critical need for most global companies to eliminate costs
from their highly fragmented data infrastructure by creating integrated and
synchronized data across the enterprise.
Founded in 1991, Persistence is a publicly traded company (NASDAQ: PRSW) with a
large, established customer base. Over the past 11 years, Persistence pioneered
the core data services technologies and has been awarded seven caching and
mapping patents, some of which have been licensed to Sun and Cisco Systems.
Persistence data services solutions power some of the world's most demanding
applications, including those of Citibank, FedEx, Eurocontrol, Reuters, Sabre
and Wells Fargo. Please visit http://www.persistence.com for more information.
Except for the historical information contained herein, the matters discussed in
this press release are forward-looking statements involving risks and
uncertainties, which could cause actual results to differ materially from those
in such forward-looking statements. Potential risks and uncertainties include,
but are not limited to, Persistence Software's limited operating history,
potential fluctuations in our operating results, our potential need to raise
cash in the future, uncertainties related to our long sales cycle, our reliance
on a relatively small number of customers, our dependence on the Java
programming language and the Enterprise JavaBeans standard becoming widely
accepted standards, failure to manage our resources or attract and retain the
services of key employees, our need to deliver products that are free of defects
and errors and meet rapidly changing technology standards and customer
requirements, our need to build a strong direct sales team and develop third
party sales channels, our dependence on enterprise-wide system deployments, and
our need to address competition from companies with substantially greater
resources. Further information regarding these and other risks and uncertainties
is included in our Annual Report on Form 10-K for the year ended December 31,
2002, the Form 10Q for the quarter ended March 31, 2003 and in our other filings
with the Securities and Exchange Commission.(C) 2003 Persistence Software Inc.
Persistence currently holds U.S. Patents Nos. 5,499,371; 5,615,362; 5,706,506;
and 6,078,926. All other product, trademark, company, or service names mentioned
herein are the property of their respective owners.