Company

AUSTIN, TEXAS – January 12, 2006 – Pervasive Software® Inc. (NASDAQ: PVSW), a global value leader in data infrastructure software, today announced that it has become one of the inaugural partners of NetSuite’s NetFlex Applications Program. Pervasive extends NetSuite’s One System Architecture with new capabilities for migrating and integrating data with NetSuite’s CRM and ERP systems. Pervasive’s integration products, which include more than 200 connectors for applications and data resources, are designed to integrate information without the high costs of custom programming. The NetFlex Application platform goes beyond other on-demand development environments by allowing third-party applications to integrate rich transaction data – orders, inventory, invoices and shipments – with their applications.

The history of application deployments is riddled with the classic problems of integrating between "front-end" and "back-end" applications, increasing barriers to productivity and access to reliable information. The new era of hosted, on-demand applications creates additional integration challenges. Pervasive technology helps NetSuite customers to get the most out of their investment in local and hosted applications. Pervasive’s integration products are quick to deploy and easy to use, allowing users to automate integration processes.

“The complexity and costs of data migration and integration are often too high and involve too much risk for most mid-size businesses,” said Chip Harmon, general manager, Integration Division at Pervasive Software. “Pervasive has an established track record of delivering integration solutions for ASPs, and our strong product offering and experience in the mid-market will provide NetSuite’s customers with a simple, more affordable solution to rapidly accelerate integration initiatives.”

Because NetSuite is the “system of record” spanning ERP, eCommerce and CRM, the range of applications built using its NetFlex environment is far more powerful than applications built on stand-alone, point-product applications. NetSuite’s order management, inventory management, shipping management, and payroll and financial data are the lifeblood of most companies and therefore require data integration with other critical systems.

“NetSuite helps a company manage its core back-office/ front-office processes,” said Zach Nelson, CEO of NetSuite. “Pervasive’s lightweight but powerful data and application integration solutions complement, and provide powerful tools for, the NetFlex Application platform. With Pervasive, NetSuite customers can rapidly implement cost-effective, best-in-class CRM and ERP offerings that are optimized for their unique business requirements.”

Combining deep knowledge and 20 years of data management expertise, the Pervasive Metamorphosis initiative enables ISVs, ASPs and systems integrators to provide solutions to the toughest integration challenges. These programs help them focus on creating value by leveraging their own core competencies and domain expertise in business applications, while leaving the data management, migration and integration challenges to Pervasive. The foundation of these partner services is a flexible business model for partners to OEM, resell, or co-market Pervasive technology for a comprehensive customer solution with low total cost of ownership. For more information, visit http://www.pervasive.com/solutions/isv.

About Pervasive Software
Pervasive Software (NASDQ: PVSW) provides data infrastructure software that helps companies unleash the value of their data investments. For more than two decades, Pervasive has delivered an enduring value proposition and the best combination of performance, reliability, functionality, and connectivity. Today Pervasive is leading its chosen markets by defining and accelerating the inevitable transition from high cost to high value. Pervasive's value is proven by the size, diversity and loyalty of its customer base, partners, and channels. Tens of thousands of customers in virtually every industry, in more than 150 countries around the world, rely on Pervasive to manage, integrate, analyze and secure their critical data. For additional information, go to www.pervasive.com.

About NetSuite
NetSuite enables companies to manage all key business operations in a single, integrated system, which includes customer relationship management; order management and fulfillment; inventory management; finance; ecommerce and Web site management; and employee productivity. NetSuite is delivered as an on-demand service, so there is no hardware to procure, no large, up-front license fee, and no complex set-ups. Finally, NetSuite's patent-pending "real-time dashboard" technology provides an easy-to-use view into role-specific business information that is always up-to-date. For more information about NetSuite, visit: www.netsuite.com. For more information about the NetFlex Applications Program, please visit www.netsuite.com/NetFlexapps.

Cautionary Statement
This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements included in this document are based upon information available to Pervasive as of the date hereof, and Pervasive assumes no obligation to update any such forward-looking statement.

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.