GemStone Systems and Merlin Announce Reseller Agreement for the Federal Government Sector

Partnership Will Provide Government Agencies With High Performance Data Cache To Increase System Performance While Reducing Costs

Beaverton, OR and Greenwood Village, CO - September 8, 2003 - GemStone Systems, an industry leader in data distribution, caching and management software, today announced that it has signed a resellers agreement with Merlin to extend the GemStone product line into key US Government agencies through Merlin's GSA Schedule. Merlin provides government solutions based on “best of breed” applications, resulting in highly scalable and performance driven systems that are critical in accessing information on a large scale relative to federal agencies with intelligence, law enforcement, security, tax processing, research, geographic and geospatial, command and control, signal analysis, public information access and war fighter scenarios.

The new partnership agreement provides Merlin with the rights to resell the GemStone product line, including GemFire, directly to the government sector. GemFire is a flexible, high performance, cross platform, cost-effective solution for data distribution, caching and management across the enterprise in real-time. Merlin provides expertise in enterprise application planning and development as well as cost effective ways to distribute data throughout an enterprise.

Government agencies whose data management strategy is to make information available in order to make real time decisions and to empower users, will benefit significantly from the GemStone and Merlin partnership. “GemStone's GemFire Distributed cache complements our technology proposition of providing government organizations with access to consistent data at the right place, at the right time and in the right format, said David Phelps, chief executive officer of Merlin.” “We provide government organizations with the infrastructure solutions needed for fast decision making, while maintaining low system costs.”

GemStone's extensive history in developing mission-critical enterprise applications, coupled with Merlin's recognized technology leadership in the federal sector, will provide the government with real time data management solutions regardless of their current application and database infrastructure. “By partnering with Merlin, we are now poised to further extend our presence into the government sector”, said Richard Lamb, president of GemStone Systems. “In addition, Merlin's 8a status and GemStone's inclusion on the GSA schedule, ensures a smooth purchasing process, as government agencies have been working with the company for a number of years and Merlin has a very successful track record”, continued Lamb.

About Merlin Technical Solutions, Inc.

As a Veteran-owned 8(a) business, Merlin redefines total technology solutions by providing hardware, software, and financing as well as professional services and support for the public and private sector. Merlin partners with the world's leading technology companies to deliver superior solutions at improved speed, scale and cost. For more information, call 1 877.430.3021 or visit www.merlints.com

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