Peerless Systems Corporation (PRLS) NASDAQ - Corporate Window

	*Financial Profile*

Peerless Systems Corporation, (PRLS:NASDAQ) is a leading provider of software-based embedded imaging and networking systems to original equipment manufacturers of digital document products. Digital document products include printers, copiers, fax machines, scanners and color products, as well as multifunction products that perform a combination of these imaging functions. In order to process digital text and graphics, digital document products rely on a core set of imaging software and supporting electronics, collectively known as an embedded imaging system. Embedded networking systems supply the core software technologies to digital document products that enable them to communicate over local area networks and the Internet. The Peerless Systems family of products and engineering services provides advanced embedded imaging and networking technologies that enable the company's OEM customers to develop digital printers, copiers and multifunction products quickly and cost-effectively. The Peerless Systems Networking subsidiary provides comprehensive software products and engineering services to office peripheral OEMs to enable networking support in the products.

Approximate Employees: 165 FYE 1/31	2004	2003	2002	2001
Total Revenues ($000)	25,254	31,757	29,767	27,407
Net Income (Loss)($000)	(4,861)	124	(10,997)	(17,649)*
Profit Margin (%)	na	0.39	na	na
Shareholders Equity ($000)	11,801	16,211	15,994	26,728
Return Shareholders Equity (%)	na	0.78	na	na
Shareholders Equity/Share	0.76	1.03	1.06	1.80
Earnings per share	(0.31)	0.01	(0.73)	(1.19)
Shares Outstanding (000)	15,575	15,722	15,062	14,886
Company reported for the second quarter ended 7/31/04 a net loss of $(1,467,000) or $(0.09) per share on total revenues of $6,303,000 vs. a net loss of $(2,797,000) or $(0.18) per share on total revenues of $6,152,000 for the same period last year. Company reported for the six months ended 7/31/04 a net loss of $(5,579,000) or $(0.35) per share on total revenues of $9,796,000 vs. a net loss of $(2,977,000) or $(0.19) per share on total revenues of $11,839,000 for the same period last year.

*Includes a non-recurring charge of $2.3 million for transaction expenses that were associated with the acquisitions of Auco, Inc. and HDE, Inc, each now a wholly owned subsidiary of the Company known as Netreon, Inc. and Peerless Systems Imaging Products, Inc., respectively.

COMPANY CONTACT: William Neil, Vice President Finance and Chief Financial Officer; (310) 297-3146

Return to Corporate Window Clients

Company reported for the second quarter ended 7/31/04 a net loss of $(1,467,000) or $(0.09) per share on total revenues of $6,303,000 vs. a net loss of $(2,797,000) or $(0.18) per share on total revenues of $6,152,000 for the same period last year.

Company reported for the six months ended 7/31/04 a net loss of $(5,579,000) or $(0.35) per share on total revenues of $9,796,000 vs. a net loss of $(2,977,000) or $(0.19) per share on total revenues of $11,839,000 for the same period last year.

*Includes a non-recurring charge of $2.3 million for transaction expenses that were associated with the acquisitions of Auco, Inc. and HDE, Inc, each now a wholly owned subsidiary of the Company known as Netreon, Inc. and Peerless Systems Imaging Products, Inc., respectively.