GemStone Systems Delivers Linux Based Software Solutions for the Financial Services Industry

Optimized Data Services Enabled Through Joint GemStone and IBM Software Solutions

Beaverton, Oregon -- June 18, 2003 – GemStone Systems, Inc today announced that financial services customers can now use IBM software and GemStone's robust data services solutions in a Linux environment to improve performance and reduce total cost of ownership.

GemStone, a member of IBM's Partnerworld for Developers program, will participate in IBM’s Linux Center of Competence for Wall Street, which helps financial institutions move to Linux. GemStone was chosen to participate in the center based on the strength and viability of the company’s data services solutions.

"The combination of GemStone's data services solutions and IBM's key software, including WebSphere and DB2 Universal database running on Linux, will help an enterprise access key information faster and easier," said Scott Handy, director, Linux Software Solutions, IBM. “For businesses in the financial services space, like brokerage houses and investment firms, the ability to access information quickly can help a stock broker make faster decisions, which saves time and money. And in the financial services space, the bottom line is always about driving revenue."

Linux in the Enterprise Data Center

Financial services firms demand high performance, flexible and scalable systems that support open standards, such as XML, Java and Web services. Linux is being widely adopted on Wall Street because it is a reliable and cost-effective operating system that is extremely stable and secure. Utilization of open source software reduces the costs and complexity associated with proprietary based alternatives

“Based on a tremendous opportunity for growth, we are very pleased as we partner with IBM to push Linux based solutions in the enterprise”, said Richard Lamb, president of GemStone Systems. “The GemFire Suite from GemStone further enhances IBM’s software solutions, and provides customers deploying Linux solutions with a more effective method to improve performance, reduce costs and accelerate business processes by having accurate, reliable, timely and consistent data that can be accessed and shared across multiple sources in real time.”

Optimization of Data Across IBM Product Line

GemStone’s GemFire product, a high performance data services solution, optimizes the IBM suite of products, including the WebSphere platform, DB2, MQ series, Informix and the Rational software solutions. GemFire is a high performance solution that integrates data from multiple sources in real-time, serving data at high speeds from automatically synchronized copies near the data consumers. In support of all open source software, GemFire is based on leading industry technology standards and offers a ‘plug and play’ solution for enterprise software and hardware resources.

About GemStone Systems, Inc.

GemStone Systems is a privately held company with over 20 years of software experience in developing high performance object oriented technology and highly scalable systems for enterprise organizations. GemStone’s patented technology delivers the speed, performance and capabilities that enterprises need from the hardware and software they already own. Industry leading organizations like FirstRand Group, BellSouth Telecommunications, IntercontinentalExchange Inc., JPMorgan Chase and UBS Warburg depend on GemStone technology and expertise to build mission-critical applications that have set the standard in their industries, and given them the competitive edge to be increasingly profitable.

Headquartered in Beaverton, Oregon, GemStone sells and supports its solutions through its US sales force and a worldwide network of distributors. For detailed product and company information, please visit www.gemstone.com

# # #

GemStone and Distributed GemFire are registered trademarks of GemStone Systems, Inc. Other names of actual companies and products mentioned herein may be the trademarks of their respective owners.