Pumatech, Inc. announces fiscal first quarter 2003 results

SAN JOSE, CA (11/21/02) - Pumatech, Inc. (NASDAQ: PUMA), the leading provider of synchronization software and services, today announced results for its first quarter of fiscal 2003, which ended October 31, 2002. For the first fiscal quarter of 2003, Pumatech reported revenues of $5,010,000 compared to $4,404,000 reported last fiscal quarter and $6,651,000 reported in the first fiscal quarter of 2002. Pumatech's 14% quarter-to-quarter revenue increase is the Company's first revenue increase in the past seven fiscal quarters.

Reported diluted loss per share in the first fiscal quarter of 2003 was $.03, compared to a loss of $.27 last fiscal quarter and a loss of $.15 in the first fiscal quarter of 2002.

Pro-forma diluted loss per share, excluding amortization of intangible assets, non-cash compensation charges, severance, facilities costs, other than temporary impairment of investments, and other non-recurring charges, was $.03 in the first fiscal quarter of 2003 compared to a loss of $.06 last fiscal quarter and a loss of $.11 in the first fiscal quarter of 2002.

For the first fiscal quarter of 2003, 60% of revenue came from Pumatech's enterprise software, while 40% was attributed to Pumatech's technology licensing offerings. Enterprise revenue includes channel and direct sales of the Company's Intellisync®, Enterprise Intellisync®, Enterprise Intellisync Server and Satellite Forms® products licensed to corporations for internal use. Technology licensing revenue includes platform licensing and related professional services for corporations choosing to integrate or embed the Company's various technologies.

The Company ended the first fiscal quarter with cash and short-term investments of approximately $31.4 million, with no debt obligations.

"The revenue increase in our first fiscal quarter can be attributed primarily to sales growth in our enterprise channels and in Japan," said Keith Kitchen, Pumatech's vice-president of finance. "Our new server-based product offerings were a key factor behind our quarter-to-quarter revenue growth. In addition, our bottom line benefited from the Company's refined product focus, enabling us to apply maximum resources to the most strategic areas of our business."

Woodson (Woody) Hobbs, president and CEO of Pumatech, stated, "Our quarter-to-quarter revenue increase is a significant accomplishment. Combined with our recent cost-reduction measures and re-focused development efforts, last quarter's positive revenue performance is a big step toward our goal of reaching profitability. I'd like to thank Pumatech's employees for working diligently to turn the tide and boost our quarter-to-quarter revenue, despite difficult market conditions."

First Quarter Highlights

Investor Conference Call
Pumatech management will discuss fiscal first quarter 2003 results and hold a question-and-answer session for investors on November 21, 2002, at 5 p.m. Eastern Time (2 p.m. Pacific Time). To participate, call 1-706-643-0341 a few minutes ahead of time (no passcode required). If you are unable to participate, a replay will be available from 8 p.m. Eastern Time on November 21, 2002 for 48 hours. To access, please dial 1-800-642-1687, or 1-706-645-9291 (international), reservation number 6528063. 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 software products and services that synchronizes and distributes critical information throughout an enterprise. 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, Eastman Kodak, Sony, JPMorgan Chase, Boeing and General Motors. The Company has headquarters in Silicon Valley and offices in Munich, 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 expense management and the benefits of such expense management including improved financial results, the timing of improved financial results, sales growth in enterprise channels and in Japan, the Company's ability to build on its quarterly results, and the benefits of new business partnerships and products 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 continued weakness 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, as well as 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, 2002 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, INC.
       PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 Excluding Amortization of Intangibles and Non-Cash Stock Compensation
                 (In thousands, except per share data)
                              (Unaudited)

                                                 THREE MONTHS ENDED
                                                     OCTOBER 31,
                                               ----------------------
                                                 2002          2001
                                               --------      --------

Revenue
  License                                      $  4,063      $  5,472
  Services                                          947         1,179
                                               --------      --------
      Total revenue                               5,010         6,651

Cost of revenues and operating expenses:
  Cost of revenue                                   824         2,216
  Research and development                        1,752         3,894
  Sales and marketing                             2,634         4,552
  General and administrative                      1,088         1,178
                                               --------      --------
      Total operating expenses                    6,298        11,840
                                               --------      --------

Operating loss                                   (1,288)       (5,189)
  Interest and other income, net                    211           441
                                               --------      --------
Loss before income taxes                         (1,077)       (4,748)
  Provision for income taxes                        (88)         (111)
                                               --------      --------
Net loss                                       $ (1,165)     $ (4,859)
                                               ========      ========

Net loss per share:
  Basic and diluted                            $  (0.03)     $  (0.11)
Shares used in per share calculation:
  Basic and diluted                              45,383        44,629

  The above pro forma condensed consolidated statements of operations
   include operational depreciation of $382 and $848 and exclude the
   following items:

Amortization of intangibles                    $    149      $  1,460
Non-cash stock compensation                          62           364
                                               --------      --------
                                               $    211      $  1,824
                                               ========      ========

Certain prior period balances have been reclassified to conform to
current period presentation.


                            PUMATECH, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share data)
                              (Unaudited)

                                                 THREE MONTHS ENDED
                                                     OCTOBER 31,
                                               ----------------------
                                                 2002          2001
                                               --------      --------
Revenue
  License                                      $  4,063      $  5,472
  Services                                          947         1,179
                                               --------      --------
      Total revenue                               5,010         6,651

Cost of revenues and operating expenses:
  Cost of revenue                                   824         2,216
  Research and development                        1,752         3,894
  Sales and marketing                             2,634         4,552
  General and administrative                      1,088         1,178
  Amortization of intangibles                       149         1,460
  Noncash stock compensation                         62           364
                                               --------      --------
      Total operating expenses                    6,509        13,664
                                               --------      --------

Operating loss                                   (1,499)       (7,013)
  Interest and other income, net                    211           441
                                               --------      --------
Loss before income taxes                         (1,288)       (6,572)
  Provision for income taxes                        (88)         (111)
                                               --------      --------
Net loss                                       $ (1,376)     $ (6,683)
                                               ========      ========

Net loss per share:
  Basic and diluted                            $  (0.03)     $  (0.15)
Shares used in per share calculation:
  Basic and diluted                              45,383        44,629

Certain prior period balances have been reclassified to conform to
current period presentation.



                            PUMATECH, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
             (In thousands, except per common share data)
                              (Unaudited)

                                              OCTOBER 31,    JULY 31,
                                                 2002         2002(2)
                                                -----------------------
ASSETS
Current assets:
  Cash and cash equivalents                     $  6,083     $  4,331
  Short-term investments                          25,287       30,100
  Accounts receivable, net                         2,937        3,009
  Inventories, net                                    75           76
  Other current assets                             1,056        1,020
                                                --------     --------
     Total current assets                         35,438       38,536
  Property and equipment, net(1)                   1,703        2,037
  Goodwill, net                                    2,731        2,731
  Intangible assets, net                             416          565
  Notes receivable                                   310          310
  Restricted cash                                    352          352
  Other assets                                     2,781        2,781
                                                --------     --------
TOTAL ASSETS                                    $ 43,731     $ 47,312
                                                ========     ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                              $    835     $    995
  Accrued liabilities                              4,491        4,764
  Current portion of borrowings                       --        2,000
  Deferred revenue                                 2,716        2,678
                                                --------     --------
     Total current liabilities                     8,042       10,437

Other liabilities                                  1,718        1,991
                                                --------     --------
     Total liabilities                             9,760       12,428

Stockholders' equity:
  Preferred stock, $0.001 par value; 2,000
   shares authorized and no shares issued
   and outstanding at October 31, 2002 and
   July 31, 2002                                      --           --
  Common stock, $0.001 par value; 80,000
   shares authorized; 46,134 and 45,851
   shares issued and outstanding at October
   31, 2002 and July 31, 2002                         46           46
  Additional paid-in capital                     149,281      149,193
  Receivable from stockholders                        --         (330)
  Deferred stock compensation                       (159)        (226)
  Accumulated deficit                           (115,301)    (113,925)
  Other comprehensive income                         104          126
                                                --------     --------
     Total stockholders' equity                   33,971       34,884
                                                ========     ========
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $ 43,731     $ 47,312
                                                ========     ========

(1) Capital expenditures were $48 for the three months ended October
    31, 2002.

(2) Certain prior period balances have been reclassified to conform to
    current period presentation.