SOURCE: Peerless Systems

May 22, 2006 10:48 ET

Peerless Supports Microsoft Windows Vista Printing and MFP Advancements

Peerless Systems Receives First Customer Commitments for Its Windows Vista-Related PeerlessXPS™ RIP and PeerlessNet Web Services SDKs

EL SEGUNDO, CA -- (MARKET WIRE) -- May 22, 2006 -- Peerless Systems Corporation (NASDAQ: PRLS), a provider of advanced imaging and networking technologies and components to the digital document market, today announced that it will offer a comprehensive set of embedded software development kits (SDKs) that enable original equipment manufacturers (OEMs) to fully support the new imaging, networking and security features in the Microsoft Windows Vista operating system including the XML Paper Specification (XPS) and Web Services for Devices (WSD). Peerless has already received customer commitments to license these solutions for use in future printer and multi-function peripheral (MFP) products.

The advancements offered in Windows Vista are expected to make a significant impact on future office imaging products. Peerless' Windows Vista-related SDKs enable a more reliable, secure and interoperable document solution, as well as a substantially improved user experience. Peerless has been working closely with Microsoft to test Peerless' embedded software solutions against the latest beta versions of Windows Vista, so that Peerless' OEM customers will have the tools to quickly build solutions on the new Microsoft technologies.

"The new digital document related technologies in the Windows Vista operating system offer improved document fidelity from screen to print and provide a platform for electronic office document workflows," said Andy Simonds, Group Program Manager for the Digital Documents Platform and Solutions team, Microsoft Corporation. "Peerless' commitment to support our new innovations in Windows Vista is indicative of the strong adoption we expect to see across the industry."

Modern businesses are striving to replace or supplement purely paper-driven processes with automated document workflows. Support for new Microsoft document technologies allows manufacturers to compete in today's rapidly evolving digital imaging market.

PeerlessXPS™ supports Microsoft's XML Paper Specification (XPS) with a unified display, store and printing imaging model plus advanced print imaging, scanning and networking enhancements for document management solutions. Peerless is an imaging market leader with XPS hardware acceleration that delivers a higher image quality with optimal gradients, transforms and opacity.

Peerless Web Services SDK and Security SDK, which were announced as part of the PeerlessNet™ family of embedded networking and security solutions, provide support for the Web Services for Devices (WSD) networking protocols and the advanced security built into the Windows Communication Framework. The PeerlessNet SDKs enable manufacturers to meet the increasing regulatory requirements for validating documents and authenticating users, while including the fundamental ease-of-use tools needed by network administrators.

As testament to the value OEMs see in using Peerless' solutions to provide Windows Vista support, Peerless has already obtained commitments from multiple customers to use the PeerlessXPS RIP and PeerlessNet Web Services SDKs. The company is actively delivering initial versions to allow customers to test their products against beta releases of Windows Vista. Final versions of Peerless SDKs are expected to be available shortly after the final release of Windows Vista, providing potential licensing revenues in the form of access fees and block licenses.

"Windows Vista is an innovative platform that promises major improvements to the end user experience with a variety of new features. But going beyond adding features, manufacturers are provided a powerful platform to integrate automated software applications that enhance business processes," said Ed Gaughan, vice president, sales and marketing, Peerless Systems. "Peerless' new SDKs provide office imaging manufacturers the ability to easily integrate the breakthrough features of Windows Vista to elevate printer and MFP capabilities in order to maintain market-relevant products and compete more aggressively within the ever-changing digital imaging market."

For more information about Peerless' Vista-related solutions, please contact Peerless at info@peerless.com.

About Peerless Systems

Founded in 1982, Peerless Systems Corporation is a provider of imaging and networking technologies and components to the digital document markets, which include manufacturers of color, monochrome and multifunction office products and digital appliances. In order to process digital text and graphics, digital document products rely on a core set of imaging software and supporting electronics, collectively known as an imaging controller. Peerless' broad line of scalable software and silicon offerings enables its customers to shorten their time-to-market and reduce costs by offering unique solutions for multiple products. Peerless' customer base includes companies such as Canon, IBM, Konica Minolta, Kyocera Mita, Lenovo, OkiData, Ricoh, RISO, Seiko Epson and Xerox. Peerless also maintains strategic partnerships with Adobe and Novell. For more information, visit Peerless' web site at www.peerless.com.

Peerless is a registered trademark of Peerless Systems Corporation. PeerlessNet and PeerlessXPS are trademarks of Peerless Systems Corporation. Windows Vista is either a registered trademark or trademark of Microsoft Corporation in the United States and/or other countries.


Safe Harbor Statement Under The U.S. Private Securities Litigation Reform Act Of 1995

Statements made by us in this press release that are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21 of the Securities Exchange Act of 1934. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management based on our current estimates, expectations, forecasts and projections and include comments that express our current opinions about trends and factors that may impact future operating results. Statements that use words such as we "believe," "anticipate," "estimate," "intend," "could," "plan," "expect," "project" or the negative of these, as well as similar expressions, are intended to identify forward-looking statements. Such statements include, but are not limited to, statements regarding the impact of Microsoft's Windows Vista™ operating system on future office imaging products and the imaging market in general, future changes in productivity growth in the digital imaging market and expected delivery dates of, and potential licensing revenues from, newly developed products. These statements are not guarantees of future performance, rely on a number of assumptions concerning future events, many of which are outside of our control, and involve known and unknown risks and uncertainties that could cause our actual results, performance or achievements, or industry results, to differ materially from any future results, performance or achievements, expressed or implied by such forward-looking statements. Such risks and uncertainties include, among other things, changing competitive and market conditions, our reliance on certain OEM customers for significant portions of our revenues, the sufficiency of our capital resources, any adverse change in our relationship with Adobe Systems Incorporated and Novell, Inc, increased competition both from in-house OEM products and low cost offshore competitors, the impact of Microsoft's Vista™ operating system, reduced demand for our existing monochrome technologies, our ability to develop and market our advanced devices and software, the validity and protection of our intellectual property rights and our ability to execute our business plan and strategic partnering transactions.

The above risks, and others, are described in further detail in our reports filed with the Securities and Exchange Commission, including but not limited to our most recent Annual Report on Form 10-K for the fiscal year ended January 31, 2006 in the section called "Certain Factors and Trends Affecting Us and Our Business" filed on May 1, 2006. Copies of Peerless' press releases and additional information about Peerless are available at www.Peerless.com or you can contact Peerless Investor Relations by calling (303) 393-7044.

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