Seagull Software Named to Software Magazine’s 23rd Annual Software 500

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Software Magazine Ranks Seagull Software Among the World’s Largest Software Companies

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Atlanta, GA – 11 October 2005

Seagull Software today announced its inclusion on the Software 500, Software Magazine's list of the world's foremost software and services providers, published as an online catalog on www.softwaremag.com .

"The overall health of the software and services industries has improved, with revenue for the 2005 Software 500 at $383.3 billion worldwide for 2004, an increase of 16.5% over the previous year. The industry continues to be dynamic, with nearly 100 new companies on the 2005 Software 500 list," says John P. Desmond, editor of Software Magazine and Softwaremag.com. "Employee head count was up 13.7% and was strongest in the segments of collaboration/project management, system integration services and IT consulting, and the supply chain/manufacturing software segment."

The Software 500 is a revenue-based ranking of the world's largest software and services suppliers targeting medium to large enterprises, their IT professionals, software developers and business managers involved in purchasing software and services. The list includes both private and public companies; 28% of the 2005 Software 500 companies are private. The Software 500 is searchable by primary business sector on www.Softwaremag.com , free to all site registrants.

Don Addington, CEO and President of Seagull Software, commented "The Software 500 is a venerable listing that has given visibility to the industry's leading software solution providers for 23 years. Seagull Software is proud to have earned Software 500 status for the past 5 years in a row."

"The online Software 500 is a valuable resource for CIOs, senior IT managers and IT staff for researching their vendor partner options. It is a quick reference of vendor viability," Desmond says.

The ranking is based on total worldwide software and service revenue for 2004. This includes revenues from software licenses, maintenance and support, training and software-related services and consulting. Suppliers are not ranked on their total corporate revenue, since many have other lines of business, such as hardware. The financial information was gathered by a survey prepared by King Content Co. and posted at www.Softwaremag.com , as well as from public documents.

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 SoftwareÕs 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.