Parallax Capital Partners and Golden Gate Capital Buy the Supply Chain Enablement (SCE) Division of Peregrine Systems Inc.

SAN FRANCISCO, CA – June 26, 2002: Golden Gate Capital and Parallax Capital Partners announced today that they have closed on the acquisition of the Supply Chain Enablement (SCE) division of Peregrine Systems Inc. (Nasdaq:PRGNE). The newly formed private company will retain the existing management team and staff, with Dave Williams, a 19-year software industry veteran and the current General Manager, continuing to lead the company as President and CEO. Joining Golden Gate and Parallax on this deal is Cerberus US Partners.

The SCE division, which comprises the former Harbinger and Extricity businesses, provides data transformation software (EDI and XML) and business process integration solutions to over 20,000 customers globally, including approximately 90% of the Fortune 500. The division also hosts the global trading community, Get2ConnectSM, which serves more than 40,000 companies and enables over 1.3 million e-Commerce transactions daily. The new company has 540 employees and FY 02 revenues of $105MM.

David Dominik, a Managing Director of Golden Gate Capital stated, “We are committed to building this company for the long-term. Our investment will provide a solid financial foundation for the business to maintain its market leading position in the EDI space while strengthening its presence in the fast growing B2Bi and Enterprise Application Integration (EAI) segments. In the near term, however, we will be singularly focused on re-engaging and rebuilding the relationships with our customers, channel partners and vendors which may have been adversely impacted by recent events at Peregrine.”

“The new business has a solid history in the EDI enablement market and is enhanced by the collaborative products from Extricity. It has all the components necessary to not only deliver advanced B2B solutions but to bridge the gap between legacy and emerging technologies”, stated Dave Williams. “Our solutions connect suppliers, buyers, and exchanges to enterprise resource planning, manufacturing planning, purchasing and sales applications in many key sectors of the global economy.”

“Golden Gate Capital and Parallax are committed to dedicating the appropriate resources to enable the company to continue its growth and profitability, to better serve its customers and to extend its technology leadership position”, said Jim Hale, Managing Partner of Parallax.

About the investors
Golden Gate Capital (http://www.goldengatecap.com) is a San Francisco-based private equity investment firm with approximately $700 million of capital under management. Golden Gate is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. They target investments of up to $100 million in situations where there is a demonstrable opportunity to significantly enhance a company’s value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, including leveraged buyouts, and recapitalizations, corporate divestitures and spin-offs, build-ups and venture-stage investing.

Parallax Capital Partners, LLC, based in Irvine, CA, is a private operating company that dedicates its resources to acquiring and managing technology-related businesses. Parallax focuses on middle-market companies that generate revenues of $10 to $250 million. To assist its operating companies in building long-term value, Parallax has established an extensive operational infrastructure, which includes accounting and finance, worldwide sales and marketing, research and development, customer support and human resources. These resources give Parallax the ability to acquire and transition whole companies, business units, product lines and technology. Together, Parallax and its partners have participated in over 200 transactions ranging in size from $5 million to over $1 billion. For more information, visit http://www.parallaxcap.com.