Seagull Software Completes Acquisition of Oak Grove Systems

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New BPM Capabilities Differentiate LegaSuite^® and Expand Addressable Market of Customers

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Atlanta, GA – 18 July 2005

Seagull Software (AEX: SEAGULL), today announced the completion of the acquisition of Oak Grove Systems, a privately-held software company that specializes in business process management (BPM) technology. For enterprises seeking to transform mainframe applications into service-oriented architecture (SOA) assets, Seagull Software is now the only vendor to offer an integrated product suite that combines legacy Web services capabilities with a BPM solution.

"The acquisition is a significant step in Seagull Software's vision to provide the most complete solution to an enterprises' need to rapidly create Web services from existing applications and effectively utilize those Web services in an SOA," said Don Addington, Seagull Software CEO and President. "LegaSuite now provides a full range of capabilities for combining existing application functions with external services and human workflow to achieve an agile SOA with no changes to the host applications."

Oak Grove Systems' process engine and tools are being re-branded as LegaSuite BPM and integrated into Seagull Software's LegaSuite platform of software solutions, which is used by over 8,000 enterprises worldwide to transform legacy applications into SOA assets. LegaSuite BPM was formally announced and demonstrated at the 2005 JavaOne Conference, June 27 - 29, 2005.

"We are very pleased with market reaction to this business combination," said Addington. "As a result of the acquisition, we have an increased capacity to reach new customers in the enterprise market and the OEM channel, with a compelling differentiator that speaks to both technology and business stakeholders."

The LegaSuite platform comprises of modules that are loosely coupled yet tightly integrated. Customers may license LegaSuite BPM stand-alone, or combined with other LegaSuite modules for functions such as Web-enablement and standards-based legacy integration. For the OEM channel, LegaSuite BPM may also be purchased as an embeddable component that provides business process management features for third-party software applications. LegaSuite BPM is available for purchase immediately.

Financial details of the acquisition were not disclosed.

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.