Seagull Software Completes Farabi Acquisition

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Gains Microsoft .NET Technology Along with Extended Geographic Reach with Canada and Middle East Customer Base

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Atlanta, GA,– 3 April 2006

Seagull Software (Euronext: SEAGULL) today announced that it has completed acquisition of the assets of privately-held Farabi Technology Corporation, a Canadian software company that specializes in integration products to connect .NET environments to legacy applications. All of Farabi's intellectual property and HostFront software products are included in the asset purchase.

Seagull Software will gain 200 new customers including fifty Fortune 1000 companies. New customers in North America include Synovis Financial, ADP, American Express, Continental Airlines, ABN Amro Bank, Sears Canada and Banque Nationale du Canada. Customers in the Middle East include Saudi Airlines, Egypt Air, National Bank of Egypt and the Ministries of Interior and Finance in Kuwait.

“This combination brings 200 new customers and expands our geographic reach into Canada and the Middle East, and the Farabi technology strongly complements Seagull Software's emulation and integration solution strategy,” remarked Don Addington, Seagull Software CEO and President. “This acquisition is a great example of the value-add we are pursuing for our customers and shareholders,” he continued.

Farabi's HostFront products add .NET-centric legacy integration, as well as 3-tier terminal emulation, to the Seagull Software technology portfolio.

“Our strategy is to be the leading vendor of high-performance solutions for transforming mainframe applications into SOA assets,” said Tom Barnes, Vice President of Business Development for Seagull Software. “Farabi's HostFront product line gives us an additional .NET integration choice for our customers, as well as a 3-tier emulator for customers who prefer that architecture.”

Since 1987, Farabi has focused primarily on the Canadian and Middle Eastern markets, with growing market share in the banking and government sectors. The development lab for HostFront products will remain in Montreal, Canada, which will also serve as Seagull Software's new sales office for the Canadian region.

Seagull Software will continue a tight relationship with Farabi's strong and well-established distribution channel in the Middle East, which recently won the prestigious Microsoft Business Process and Integration Competency Award based on sales of Farabi products and associated services in the Gulf region. Sales through the channel will expand to include Seagull Software's LegaSuite^® and BlueZone™ products.

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About Seagull Software

Seagull Software specializes in technology that transforms “legacy” applications into SOA-compliant Web services, helping enterprises achieve exponentially faster IT support for business change, governance and compliance. Our LegaSuite® software platform includes integration, GUI, BPM and terminal emulation technology. With LegaSuite, customers connect legacy applications on IBM mainframe, ICL mainframe, iSeries, UNIX/VT and Windows client/server platforms to the Web, to other middleware and to newer-generations of applications such as portals, CRM and SCM. LegaSuite is based on open standards including Web services, XML, J2EE and .NET . Powerful and innovative tools require no coding, which means rapid results, reduced risk and no maintenance burden. Committed to providing the best customer experience in the industry, Seagull Software's technology is in use in more than 8,000 business and government organizations worldwide, and by millions of end users. Seagull Software has direct operations in the United States , the Netherlands , UK , France , Germany and Australia , supplemented by distributors serving approximately 30 additional countries. For more information, visit www.seagullsoftware.com.

NOTE TO EDITORS: The correct usage of our company name is Seagull Software.

Forward-Looking Information: All statements in this press release which address operating performance, events or developments that we expect or anticipate will occur in the future, including statements expressing general optimism about future operating results and non-historical information, are forward-looking statements. These forward-looking statements are, and will be, based on management's then-current views and assumptions regarding future events and operating performance. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not necessarily limited to management's ability to manage growth, and hire and retain qualified employees; unpredictable customer demand; intense competition; rapid technological change; unpredictable market acceptance of new products; and market instability and/or reduction in software purchasing caused by exceptional circumstances.