1042821--9/13/2007--PERVASIVE_SOFTWARE

related topics

{product, market, service}

{acquisition, growth, future}

{system, service, information}

{stock, price, operating}

{operation, international, foreign}

{customer, product, revenue}

{property, intellectual, protect}

{personnel, key, retain}

{product, liability, claim}

{control, financial, internal}

{financial, litigation, operation}

Our Financial Results May Vary Significantly from Quarter to Quarter Seasonality May Contribute to Fluctuations in Our Quarterly Operating Results We Generally Operate Without a Backlog Our Performance Depends on Market Acceptance of Pervasive.SQL Our Efforts to Develop and Maintain Brand Awareness of Our Products May Not be Successful We Must Succeed in the Data Management Software Market as Well as the Data Integration Software Market if We are to Realize the Expected Benefits of the Merger with Data Junction Corporation We May Face Problems in Connection With Past Acquisitions, Joint Ventures or Licensing Arrangements We May Face Problems in Connection With Future Acquisitions, Joint Ventures or Licensing Agreements We May Face Problems in Connection With Product Line Expansion A Small Number of Distributors and Sales Related to Accounting Software Applications Account for a Significant Percentage of Our Revenues We Depend on Our Indirect Sales Channel We May Not Be Able to Develop Strategic Relationships We Depend on Third-Party Technology in Our Products We May be Unable to Protect Our Intellectual Property and Proprietary Rights We Must Adapt to Rapid Technological Change Our Software May Contain Errors or Defects We May Become Subject to Product or Professional Services Liability Claims We Compete with Microsoft while Simultaneously Supporting Microsoft Technologies We Face Significant Competition From Other Companies We are Susceptible to a Shift in the Market for Client/Server Applications Toward Web-Based or Hosted Applications We Depend on International Sales and Operations We Use a Third-Party Service Provider in India and If We Are Unable to Use Such Provider Our Business Could Be Temporarily Adversely Affected Fluctuations in the Relative Value of Foreign Currencies Can Affect Our Business We Must Continue to Hire and Retain Skilled Personnel We May Elect to Raise Additional Capital Which Might Not Be Available or Which, if Available, May Be on Terms That Are Not Favorable to Us The Price of Our Stock Has Been Volatile and Could Continue to Fluctuate Substantially We May Be Exposed to Potential Risks if We Do Not Have an Effective System of Disclosure Controls or Internal Controls or Fail on an On-going Basis to Properly Address and Implement Section 404 of Sarbanes-Oxley SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

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1042821--9/13/2007--PERVASIVE_SOFTWARE_INC