Seagull Software Acquires Enterprise BPM Vendor Oak Grove Systems

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Company Continues Market Leadership, Adding Reactor Product Line to LegaSuite

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Atlanta, GA – 13 June 2005

Seagull Software (AEX: SEAGULL), today announced that it has signed a definitive agreement to acquire Oak Grove Systems, Inc. , a privately-held software company that specializes in business process management (BPM) technology.

As a result of the acquisition, Oak Grove Systems' Reactor^® process engine and tools will join Seagull Software's LegaSuite^® platform of software solutions, which is used by over 8,000 enterprises worldwide to transform legacy applications into service-oriented architecture (SOA) assets. With the addition of Reactor, enterprises can integrate their legacy applications with human activities and external services in an agile SOA that can be rapidly reconfigured to support changing business needs - all with no coding and no changes to the host applications.

"Seagull Software's vision is to dominate the market for transforming mainframe applications into Web services and SOA assets, and we view business process management as an essential element of a complete, high-performance solution for the large enterprise," said Don Addington, Seagull Software CEO and President. "Now our LegaSuite customers not only have the ability to rapidly create Web services, they can also put those Web services to work in new composite applications. Following on the heels of our recent acquisition of SofTouch Systems, LegaSuite is unrivaled not only for performance and scalability, but also as the only legacy integration solution that includes BPM."

Seagull Software's customers are deconstructing valuable legacy business applications into their component process fragments and transforming those processes into Web services. The value this brings to the organization is the ability to re-arrange and optimize business processes to support change and to re-use the process fragments to support new business requirements. With the Reactor process engine incorporated into LegaSuite, customers have a complete suite of tools and technology to model new role-based workflows, apply business rules and execute the processes. "For large organizations that are focused on SOX and Basel compliance, cost savings through business process optimization and process-driven competitive advantage, LegaSuite brings a lot to the table," said Don Addington.

"Mainframe users who are considering BPM projects now have a solution that is tailor-made for them. Combining Reactor with LegaSuite uniquely positions Seagull Software to dominate the burgeoning market for SOA-enabled legacy systems, and we are thrilled to help make that happen," said Charles Ames, president and CEO of Oak Grove Systems. "We are also pleased with the perfect synergy between Seagull Software's industry-leading OEM channel and the Reactor OEM installed base. The OEM business will continue to be an important focus for us going forward, which will provide continuity to current Reactor users."

In addition to enhancing LegaSuite for enterprise customers, Reactor will be marketed to Seagull Software's large installed base of independent software vendor (ISV) customers who embed LegaSuite's Web services and Web user interface modules into their commercial software applications. "We have over 500 ISV customers who need to give their licensees the ability to transform their applications into Web services and rapidly re-arrange those services to support business change," said Don Addington. "We will immediately begin marketing Reactor into this important group of customers."

LegaSuite and Reactor

For the enterprise market Reactor will be fully integrated into LegaSuite, which is modularized so enterprises will continue to be able to license only the BPM engine if they wish. Reactor will also continue to be available on a stand-alone basis to OEM's. Consistent with LegaSuite, Reactor is non-invasive technology that supports open, standards-based BPM with no custom coding or programming. Highlights of Reactor's capabilities include:

• Seamlessly orchestrates manual activities, automated tasks and Web services for cohesive end-to-end business processes
• Support for human and application-level interaction
• Supports role-based workflows and processes
• Visual modeling tools provide a single solution for both process designers and developers to design business processes and forms without coding
• Platform neutral and standards-based architecture supports all major operating systems, application servers and databases
• Powerful and flexible Java-based and XML-driven architecture enables use as an embedded component or as a standalone application for custom solutions
• NASA heritage yields reliability, availability and scalability to meet the transaction volume and business-critical requirements of the large enterprise

About Oak Grove Systems

Oak Grove Systems was founded in 1998 as a spin-off of the NASA Jet Propulsion Laboratory. Reactor is based on process orchestration technology designed for the International Space Station and NASA Space Shuttle programs, with enterprise-class reliability, availability and scalability built in. Unlike other BPM engines, Reactor is capable of modeling, orchestrating and managing business processes comprising not only computerized process fragments at any level of granularity, but also human processes.

The company has over 60 customers - primarily OEM's who embed the technology in their offerings. Oak Grove Systems customers include SAS, Sybase, Plumtree Software, Macnica, Empolis GmbH (Bertelsmann MOHN Media Group), Intentia International and the U.S. Navy.

Summary

"Enterprises are seeking vendors that accelerate the move to SOA," said Kim Addington, EVP and CMO for Seagull Software. "With the addition of Reactor to LegaSuite, Seagull Software is the only legacy integration vendor that can provide an integrated platform for code-free development, orchestration and deployment of SOA-compliant composite applications."

Reactor licenses are available for purchase immediately.

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.

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