GemStone Systems Further Strengthens Government Team With Addition of Steve Rixse As Director Of The Federal Sector

Beaverton, Ore.- July 21, 2003 - GemStone Systems, Inc., announced today that Steve Rixse has joined the company as director of sales for the federal government team and will be responsible for developing business opportunities within this industry. Based on twenty years of technology experience in the federal market, Mr. Rixse is positioned well to increase GemStone's presence and growth in the government sector.

“Steve's relationships and extensive knowledge of the government sector will provide substantial benefits to our growing team”, said Dan Ware, executive vice president of business development at GemStone Systems. “Adding Steve to our team is a significant win as he has a great track record for success with both civilian and intelligence government agencies.”

Rixse brings almost twenty years of experience in sales management, product marketing and consulting for the federal sector. Most recently he led the eastern region sales team for federal accounts at Globalsight Corporation. At both Vista Information Technologies and Sterling Software, Rixse served as vice president of federal sales, leading sales teams that were responsible for a significant percentage of revenues for the companies. For thirteen years, Mr. Rixse held a variety of senior management positions at Digital Equipment Corporation. Rixse earned a Bachelor of Science and Masters of Business Administration from Virginia Commonwealth University.

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 global organizations such as IntercontinentalExchange Inc., JPMorgan Chase, UBS Warburg, BellSouth Telecommunications and Orient Overseas Container Line depend on GemStone technology and expertise to build scalable, 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.