Pumatech Realigns Operations to Accelerate Return to Profitablity

Company expects pro-forma profitability in January 2003 quarter

San Jose, CA February 26, 2002 - Pumatech, Inc. (NASDAQ NM: PUMA), a leading provider of enterprise-level software products and services that deliver highly relevant information wherever and whenever it's needed, announced today it will reduce its U.S.-based engineering staff by approximately 60 people while significantly boosting its offshore engineering capacity to meet the Company's requirements. The Company will shift certain projects to its recently announced offshore partner, SoftVision, headquartered in Romania. The Company will also eliminate another 20 positions across other business functions in an ongoing effort to further streamline its operations and return to profitability. Pumatech will also further consolidate its business facilities located in Los Gatos, California and Nashua, New Hampshire to existing facilities located in San Jose and Santa Cruz, California.

Brad Rowe, president and CEO of Pumatech, stated, "The move to transition more of our development effort to offshore engineering resources allows Pumatech to maintain its commitment to delivering new products meeting our customer needs at considerable cost savings. Rather than reduce overall engineering capacity, we plan to increase it. At the same time, we will establish a significant European presence helping us to build a business base in this large and growing market. This shift to an onshore / offshore model is an important step that will accelerate the Company toward its financial goals while continuing to deliver innovative solutions to our customers on a worldwide basis. "

"We are committed to protecting our cash position, generating a pro-forma profit and being cash flow positive by our second fiscal quarter ending January, 2003," stated Kelly Hicks, vice president of operations and CFO. "We have made significant progress in reducing our cost structure over the past few quarters. By further consolidating our facilities, streamlining our operations and moving certain engineering projects offshore, we will further significantly reduce our breakeven point. We expect to see the majority of the benefits related to these actions in fiscal Q4 of this year."

The Company expects all of the workforce reductions and facilities consolidations to be completed by the end of the company's third fiscal quarter ending April 30, 2002 and expects its remaining worldwide workforce to equal approximately 135 full-time equivalent employees excluding significant offshore contracted development resources. These actions are expected to result in one-time charges related to severance and facility closing costs in the third fiscal quarter as well as significant quarterly operational cost savings, beginning in the fiscal fourth quarter.

Pumatech's management expects to offer detail on its fiscal second quarter results, as well as its outlook for the remainder of the calendar year, during its regular quarterly earnings conference call on February 27, 2002. Details of the conference call are provided below.

Investor Conference Call
Management will discuss second quarter results and the company's outlook and hold a question-and-answer session for investors on Feb. 27, 2002, at 5:00 p.m. Eastern /2:00 p.m. Pacific. To participate, call 212-896-6065 a few minutes ahead of time (no passcode required). If you are unable to participate, a replay will be available from 7:00 p.m. Eastern on Feb. 27, 2001 for 48 hours. To access, please dial 1-800-633-8284, or 1-858-812-6440 (international), reservation number 20216527. In addition, the replay will be available for 90 days via the Internet at www.pumatech.com.

ABOUT PUMATECH
Pumatech, Inc. (NASDAQ: PUMA) provides organizations with a comprehensive suite of enterprise-level software products and services that deliver highly relevant information - wherever and whenever it's needed. The company's portfolio makes Pumatech a single resource, providing the infrastructure necessary to expand the boundaries of information. Organizations can choose to use Pumatech's ready-made enterprise offerings, or they can leverage Pumatech's professional services team to create custom solutions built upon Pumatech's core enterprise platform. Pumatech's customer and strategic partner base includes Global 2000 companies such as Siebel, Oracle, Yahoo!, NTT DoCoMo, Boeing, CNET and General Motors. The company has headquarters in Silicon Valley, Tokyo and London. Pumatech offers more information on its products and services at www.pumatech.com.

The forward looking statements above in this news release, including statements related to the timing and likelihood of anticipated return to profitability, release of new products and the company's ability to recruit and retain offshore engineering resources are based on current expectations and beliefs and are subject to numerous risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially include uncertainties related to the effect of general economic factors on the overall demand for our products and services, the timing of market adoption of wireless computing devices, the timely introduction, availability and acceptance of new products and upgrades, the impact of competitive products and pricing, consummation of binding agreements with prospective business partners and risks associated with use of new offshore resources including, without limitation, the company's ability to remotely manage development efforts, lost time in training new software developers and insufficient levels of adequately trained offshore engineers to meet the company's requirements. There are additional risk factors, as discussed in the "Risk Factors" section of Pumatech's Annual Report on Form 10-K for the year ended July 31, 2001 and Pumatech's quarterly reports filed from time to time with the U.S. Securities and Exchange Commission.

Pumatech disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. Pumatech and the Pumatech logo are trademarks of Pumatech, Inc., that may be registered in certain jurisdictions. All other product and company names may be trademarks their respective owners.