Versant Completes Its Restructuring With the Sale of Its WebSphere Consulting Practice

FREMONT, Calif., Feb. 7 /PRNewswire-FirstCall/ -- Versant Corporation , an industry leader in specialized data management, today announced that it has sold its WebSphere consulting practice.

In an effort to focus Versant more on its core database business, the Company has sold its WebSphere consulting practice to Sima Solutions, a company founded by James Pollitt, who was the manager of Versant's WebSphere practice, in exchange for a combination of upfront cash of $500,000 and earn-outs over the next eight quarters. This consulting practice has been focused on serving customers using products in the IBM WebSphere product family with a significant amount of the business coming from IBM utilizing Versant as a subcontractor.

This transaction effectively completes the restructuring that the Company started in June 2005. The sale is effective February 1, 2006 and Versant will reflect this transaction in its second quarter ending April 30, 2006.

Over the past two years the WebSphere consulting practice had averaged approximately $5.0 million in revenues and $375,000 in operating income annually. If the WebSphere business as operated by Sima continues in the same fashion over the next two years, with continuity in its workforce, then Versant would receive approximately $900,000 in earn-out payments over the next two years, which would bring the total purchase price to approximately $1.4 million.

"This transaction is a great opportunity for all involved," said Jim Pollitt, President of Sima Solutions. "The customers of the WebSphere consulting practice will benefit from the flexibility of a private and more focused organization, which is fully dedicated to this business and has a high level of expertise in middleware software services."

"Versant will benefit from this transaction by improving its cash position and its gross margin percentage," said Jochen Witte, CEO of Versant Corporation. "It further enables the Company to streamline and simplify its operation and devote its whole attention to its higher-margin object database business by removing the risk associated with a non-core operation."

About Versant Corporation

Versant Corporation is an industry leader in specialized data management software. Using Versant's solutions, customers cut hardware costs, speed and simplify development, significantly reduce administration costs, and deliver products with a strong competitive edge. Versant's solutions are deployed in a wide array of industries including telecommunications, financial services, transportation, manufacturing, and defense. With hundreds of thousands of installations, Versant has been a highly reliable partner for over fifteen years for Global 2000 companies such as Ericsson, Verizon, Sagem, US Government, and Financial Times. For more information, call 510-789-1500 or visit http://www.versant.com/.

Forward-Looking Statements Involve Risks and Uncertainties

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. These forward-looking statements include, among other things, the statements regarding (i) the potential future performance of the WebSphere consulting practice as operated by Sima Solutions, (ii) the potential amounts that Versant may be paid by Sima Solutions under the earn-out provisions of the agreement under which Versant sold its WebSphere consulting practice to Sima Solutions, (iii) anticipated benefits to Versant of the sale of its WebSphere consulting practice and the impact such sale may have on Versant's cash position and gross margin percentage and (iv) whether the sale will enable Versant to devote more attention to its core database business. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties. There are many important factors that could cause the amounts paid to Versant pursuant to the sale of its WebSphere consulting practice and the impact of such sale on Versant's business to differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, without limitation; Sima's inability to achieve revenues for its WebSphere practice as were previously achieved by Versant; Sima's operating results and its ability to adequately fund support of its WebSphere consulting practice; Sima's ability to retain key employees engaged in the WebSphere consulting practice who were formerly Versant employees; changing market demands or perceptions of IBM's WebSphere family of products and other future events that might impact the ability of Versant's management to focus on Versant's database business. The forward-looking statements contained in this press release are made only as of the date of this press release, and Versant assumes no obligation to publicly update any forward-looking statement. Investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning factors that could cause results to differ can be found in the Versant's filings with the Securities and Exchange Commission, including without limitation Versant's most recent Annual Report on Form 10-K for the year ending October 31, 2005 and its reports on Form 8-K.

NOTE: Versant is a registered trademark or trademark of Versant Corporation in the United States and/or other countries. All other products are a registered trademark or trademark of their respective company in the United States and/or other countries.

CONTACT: Jochen Witte, Chief Executive Officer and Chief Financial
Officer of Versant Corporation, 1-800-VERSANT, or [phone]; or Versant
IR, Scott Liolios of Liolios Group, Inc., [phone], or
[e-mail]