About NonGAAP inancial In ormationThis press release includes nonGAAP inancial measures

About Non-GAAP inancial In ormationThis press release includes non-GAAP inancial measures. or a description o these non-GAAP inancial measures, including the reasons management uses eachmeasure, and reconciliations o these non-GAAP inancial measures to the mostdirectly comparable inancial measures prepared in accordance with GenerallyAccepted Accounting Principles (GAAP), please see the section entitled "AboutNon-GAAP inancial Measures" and the accompanying tables entitled"Reconciliation o GAAP Measures to Non-GAAP" and "Reconciliation o orward-Looking Guidance." Cautionary Statement This document contains orward-looking statements that in ol e risks anduncertainties concerning the company, including the company's expectedper ormance or the third quarter ending March 31, 2009, and the company'sstrategy and pro itability going orward. Actual e ents or results may di ermaterially rom those described in this document due to a number o risks anduncertainties. These risks and uncertainties include, among others, thecompany's ability to attract and retain existing and/or new customers; thecompany's ability to issue new products or releases o solutions that meetcustomers' needs or achie e acceptance by the company's customers; changes tocurrent accounting policies which may ha e a signi icant, ad erse impact uponthe company's inancial results; the introduction o new products by competitorsor the entry o new competitors; the company's ability to preser e its keystrategic relationships; the company's ability to hire and retain key employees;and economic and political conditions in the U.S and abroad. All o these actors may result in signi icant luctuations in the company's quarterlyoperating results and/or its ability to sustain or increase its pro itability.Additional in ormation regarding these and other actors can be ound inPer asi e's reports iled with the Securities and Exchange Commission, includingits orm 10-K or the year ended June 30, 2008. Per asi e is not obligated toupdate these orward-looking statements to re lect e ents or circumstances a terthe date o this document. All Per asi e brand and product names are trademarks or registered trademarks o Per asi e So tware Inc in the United States and other countries All othermarks are the property o their respecti e owners Per asi e So tware Inc.

Condensed Consolidated Balance Sheets (in thousands) December 31, June 30, 20082008 (Unaudited)ASSETS Currentassets:Cash and $15,165$33,190 cash equi alentsMarke29,714 11,759 tablesecuritiesTrade5,4465,581accountsrecei able, netDe erred735744taxassets,netPrepaid1,3601,249expensesandothercurrentassets Total52,420 52,523 currentassetsProperty1,5421,474and equipment,netPurchased 78 626technology,net Goodw38,508 38,508 ill De erred1,7811,310taxassets,netOther247303assetsTotal $94,576$94,744 assets LIABILITIESAND STOCKHOLDERS' EQUITY Currentliabilities: Accounts $4,952 $5,123payableandaccruedliabilitiesDe er6,4646,345red re enueTotal11,416 11,468 currentliabilities Stockhol83,160 83,276 ders'equityTotal$94,576$94,744 liabilitiesand stockholders' equity Per asi e So tware Inc.Condensed Consolidated Statements o Operations(in thousands, except per share data)(Unaudited) Three months endedSix months ended December 31 December 312008200720082007Re enues:Produ $7,163 $7,155 $15,317$14,181 ctlicenses Ser ices4,0263,1877,7596,331andotherTotal11,189 10,342 23,076 20,512 re enue Costs and expenses: Cost o 4276919181,223productlicensesCost o 1,2771,0472,3892,107ser icesandotherSales4,5564,3059,1068,585andmarketingResearch2,5712,6175,1065,162andde elopmentGeneral1,2211,2412,6912,671andadministrati e Total costs10,052 9,90120,210 19,748 and expenses Operatin1,1374412,866764g income Interest1754593851,042andotherincome,netIncome (153)(215)(809)(568)taxpro ision Net$1,159 $685 $2,442 $1,238income Diluted$0.06$0.03$0.13$0.06 earningsper share Shares used18,437 20,482 18,632 20,664 incomputing diluted earningsper share Per asi e So tware Inc. Condensed Consolidated Statements o Cash lows (in thousands)(Unaudited)Three months ended Six months endedDecember 31December 31 2008 20072008 2007Cash romoperations Net $1,159 $685$2,442 $1,238 income Adjustments to reconcile net incometo net cash pro idedby operations: Depreciation &430539 9611,081 amortization Write-o o -147 -147 purchased technologyNon-cash stock375464 774949 compensationexpense Non-cash changes(64) (160) (462 ) (160) in de erred tax assetsChanges incurrent assetsand liabilities:Trade 762441 61 382 accountsrecei ablePrepaid(303 ) (1) (116 ) 153 expenses and other currentassets Accounts (1,239 ) (392) (56) 412 payable andaccruedliabilitiesDe erred(35) (399) 202(392) re enueNet cash pro ided by1,0851,324 3,8063,810 operationsCash rom in esting acti itiesPurchase o property(232 ) (179) (477 ) (275) and equipmentSales and purchases(16,569) 6,591 (17,736) 2,823 o marketablesecurities, net(Increase)15 (58 ) 55 (54 ) decrease in otherassetsNet cash pro ided by(16,786) 6,354 (18,158) 2,494 (used in) in esting acti ities Cash rom inancing acti itiesProceeds rom-5124 285 exercise o stockoptionsAcquisition o (3,089 ) (2,524) (3,695 ) (3,601) Treasury StockNet cash used in (3,089 ) (2,473) (3,671 ) (3,316) inancing acti ities E ect o exchange rate44 17(2 ) 43on cash and cashequi alents Increase (decrease) in(18,746) 5,222 (18,025) 3,031 cash and cash equi alents Cash and cash 33,911 29,37233,190 31,563equi alents atbeginning o period Cash and cash$15,165$34,594 $15,165$34,594equi alents at end o period About Non-GAAP inancial MeasuresThe Company pro ides non-GAAP measures or net income and net income per sharedata as supplemental in ormation regarding the Companys core businessoperational per ormance. The Company belie es that these non-GAAP inancialmeasures are use ul to in estors because they exclude certain non-operating ornon-recurring charges. In addition, these non-GAAP measures more closely re lect theessential re enue generation acti ities o the Company and the direct operatingexpenses (resulting in or rom cash expenditures) needed to per orm thesere enue generating acti ities. Accordingly, management excludes the amortizationo purchased intangible assets related to the Data Junction acquisition andstock-based compensation related to employee stock options. The Company belie es that pro iding the non-GAAP measures that management usesis use ul to in estors or two primary reasons.

irst, it pro ides a consistentbasis or in estors to understand the Companys inancial per ormance on atrended basis across many historical periods, particularly gi en the adoption o S AS 123R at the beginning o iscal year 2006 and the changes it has introduced or calculating stock-based compensation expenses relati e to prior periods. Andsecond, it allows in estors to e aluate the Companys per ormance using the samemethodology and in ormation as that used by the Companys management. Non-GAAP measures are subject to material limitations as these measures are notin accordance with, or a substitute or, US GAAP and there ore the Companysde inition or interpretation may be di erent rom similar non-GAAP measuresused by other companies and independent inancial analysts. Howe er, theCompanys management compensates or these limitations by pro iding the rele antand detailed disclosure o the items excluded in the calculation o non-GAAP netincome and non-GAAP diluted earnings per share, which should be supplementallyconsidered when e aluating the Companys results.