Exhibit 99.1

Contact:

Randy Jonkers

Chief Financial Officer

800.287.4383

investor.relations@pervasive.com

Pervasive Software Reports Results for its Third Quarter of Fiscal Year 2007

Company Reports 25^th Consecutive Profitable Quarter

AUSTIN, TEXAS – April 24, 2007 – Pervasive Software^® Inc. (NASDAQ:PVSW), a global value leader in embeddable data management and integration software, today announced financial results for the third fiscal quarter ending March 31, 2007.

“It gives me great pleasure to announce Pervasive’s 25^th consecutive quarter of profitability – the same quarter in which we celebrate the Silver 25^th anniversary of our flagship embedded database product,” said John Farr, president and CEO of Pervasive Software. “Pervasive has a long and rich history of evolving – profitably – with the ever-changing demands in the software market. During the quarter, we continued to focus on winning new, leveragable channel relationships and launched a SaaS-targeted release of our integration software. We also continue to invest in the future with major software releases scheduled in 2007 for Pervasive’s embedded database, integration and data profiling products as well as new products for SaaS Data Integration, and new frameworks to speed the development of highly parallel applications on multi-core platforms.”

Revenue was $10.4 million for the third quarter of fiscal year 2007, compared to $11.4 million for the third quarter of last fiscal year. Net income was $0.9 million, or $0.04 diluted earnings per share, for the quarter, compared to net income of $0.4 million, or $0.02 diluted earnings per share, for the third quarter of last fiscal year.

On a non-GAAP basis, Pervasive realized net income of $1.3 million, or $0.06 diluted earnings per share, in the third quarter of fiscal year 2007, compared to net income of $1.4 million, or $0.06 diluted earnings per share, in the third quarter of last fiscal year. Non-GAAP results exclude amortization of purchased intangibles, stock-based compensation expense, and management restructuring charges and assume a non-GAAP effective tax rate of 34%.

Pervasive continued to generate positive cash flow from operations with $3.3 million in the third quarter of fiscal 2007, ending the quarter with $47.1 million in cash and marketable securities and no debt, representing approximately $2.17 per issued and outstanding share. Cash and marketable securities in total and per issued and outstanding share as of the end of the prior fiscal year, June 30, 2006, were $43.5 million and $1.90, respectively.

Pervasive acquired approximately 538,000 shares of Pervasive common stock on the open market at a total cost of approximately $2.1 million, or approximately $3.96 weighted average price per share, during the quarter ended March 31, 2007. The Company has approximately $2.9 million authorized repurchase funds remaining under its $5.0 million stock repurchase program announced in December 2006. Depending on market conditions and other factors, such purchases may be commenced or suspended at any time without prior notice. In addition, current and former employees of the Company exercised stock options representing approximately 419,000 shares of Pervasive common stock, generating exercise proceeds to the Company of approximately $1.2 million during the quarter ended March 31, 2007.

Employee and director stock options outstanding as of March 31, 2007, including both “in-the-money” and “out-of-the-money” options, totaled approximately 2.8 million, compared to stock options outstanding as of June 30, 2006, of approximately 3.8 million. Total issued and outstanding shares of common stock as of March 31, 2007, totaled approximately 21.7 million compared to total issued and outstanding shares as of June 30, 2006, of approximately 22.9 million. “We are pleased with the results of our share repurchase program in the first nine months of fiscal year 2007, which has resulted in a reduction of our total shares issued and outstanding and dilution reduction of our outstanding stock options. Meanwhile, our profitability and positive cash flow have resulted in increases in our absolute cash position and cash per issued and outstanding share,” concluded Farr.

Business Outlook

For the fourth fiscal quarter ending June 30, 2007, Pervasive expects revenue to be in the range of $9.5 million to $10.5 million and GAAP-basis diluted earnings per share of $0.01 to $0.04. GAAP-basis profitability is expected to include amortization of purchased intangibles and stock-based compensation expense, together representing approximately $0.8 million in the fourth quarter of fiscal year 2007. The company expects non-GAAP adjustments to result in non-GAAP diluted and fully taxed earnings per share of approximately $0.04 to $0.07 in the June quarter, compared to non-GAAP diluted earnings per share of $0.06 for the June quarter of fiscal year 2006.

Conference Call Details

Pervasive will host a conference call to discuss these results with the investment community today at 5:00 P.M. Eastern time. The dial-in numbers for the call are 877-808-2426 (toll-free) or 706-634-9536 (international). The conference name is “Pervasive Software Inc”. The conference call may also be accessed live over the Web at www.pervasive.com/ircalendar. Check the Web site before the call for login information. Replay will be available 8 P.M Eastern Tuesday, April 24, to midnight, Tuesday, May 1, by dialing 800-642-1687 (toll-free) or 706-645-9291 (international), and selecting Conference ID 4747249. Additionally, the Webcast will be archived on Pervasive’s website at http://www.pervasive.com/ircalendar.

About Pervasive Software

Pervasive Software (NASDAQ: PVSW) provides embeddable data management and

integration software to help companies grow and extend the value of their data investments. For more than two decades, Pervasive has delivered value with a compelling combination of performance, flexibility, reliability and low total cost of ownership. Today, Pervasive is leading its chosen markets by defining and accelerating the inevitable transition from high cost to high value. Pervasive’s hallmark is the size, diversity and loyalty of its customer base, partners and channels: tens of thousands of customers in virtually every industry, in more than 150 countries, rely on Pervasive to manage, integrate, analyze and secure their critical data. For additional information, go to www.pervasive.com.

About Non-GAAP Financial Information

This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the section entitled “About Non-GAAP Financial Measures” and the accompanying table entitled “Reconciliation of GAAP Measures to Non-GAAP.”

Cautionary Statement

This document contains forward-looking statements that involve risks and uncertainties concerning the company, including the company’s expected performance for the fourth quarter ending June 30, 2007, and the company’s strategy and profitability going forward. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These risks and uncertainties include, among others, the company’s ability to attract and retain existing and/or new customers; the company’s ability to issue new products or releases of solutions that meet customers’ needs or achieve acceptance by the company’s customers; changes to current accounting policies which may have a significant, adverse impact upon the company’s financial results; the introduction of new products by competitors or the entry of new competitors; the company’s ability to preserve its key strategic relationships; the company’s ability to hire and retain key employees; and economic and political conditions in the US and abroad. All of these factors may result in significant fluctuations in the company’s quarterly operating results and/or its ability to sustain or increase its profitability. More about potential factors that could affect the company’s business and financial results is included in Pervasive’s Form 10-Q for the quarter ended December 31, 2006 and Form 10-K/A for the fiscal year ended June 30, 2006, which are on file with the SEC and available at the SEC’s website at www.sec.gov. Pervasive is not obligated to update these forward-looking statements to reflect events or circumstances after the date of this document.

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All Pervasive brand and product names are trademarks or registered trademarks of Pervasive Software Inc. in the United States and other countries. All other marks are the property of their respective owners.

Pervasive Software Inc.

Condensed Consolidated Balance Sheets

(in thousands)

	March 31, 2007		June 30, 2006
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	36,547	$	31,137
Marketable securities		10,559		12,405
Trade accounts receivable, net		6,025		7,383
Deferred tax assets, net		1,145		1,900
Prepaid expenses and other current assets		1,573		1,773
Total current assets		55,849		54,598
Property and equipment, net		1,595		1,724
Purchased technology, net		2,482		4,663
Goodwill		38,953		38,953
Deferred tax assets, net		400		400
Other assets		220		300
Total assets	$	99,499	$	100,638
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	5,748	$	5,885
Deferred revenue		5,668		5,592
Total current liabilities		11,416		11,477
Stockholders’ equity		88,083		89,161
Total liabilities and stockholders’ equity	$	99,499	$	100,638

Pervasive Software Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

	Three months ended March 31						Nine months ended March 31
	2007			2006			2007			2006
Revenues:
Product licenses	$	7,468		$	8,470		$	21,717		$	25,613
Services and other		2,976			2,931			8,770			8,754
Total revenue		10,444			11,401			30,487			34,367
Costs and expenses:
Cost of product licenses		910			619			2,859			1,807
Cost of services and other		1,102			1,403			3,327			4,178
Sales and marketing		3,851			4,537			11,260			14,489
Research and development		2,575			2,399			7,330			7,785
General and administrative		1,365			1,721			4,287			5,038
Management restructuring charges		—			771			—			771
Total costs and expenses		9,803			11,450			29,063			34,068
Operating income		641			(49	)		1,424			299
Interest and other income, net		593			403			1,675			986
Income tax provision		(375	)		—			(949	)		(100	)
Net income	$	859		$	354		$	2,150		$	1,185
Diluted earnings per share:	$	0.04		$	0.02		$	0.10		$	0.05
Shares used in computing diluted earnings per share		21,731			22,805			21,931			22,428

Pervasive Software Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

	Nine months ended March 31
	2007			2006
Cash from operations
Net income	$	2,150		$	1,185
Adjustments to reconcile net income to net cash provided by operations:
Depreciation & amortization		1,837			1,973
Write-off of purchased technology		1,036			—
Non-cash stock compensation expense		1,602			2,396
Changes in current assets and liabilities:
(Increase) decrease in trade accounts receivable		1,382			(324	)
(Increase) decrease in prepaid expenses and other current assets		965			(246	)
Increase (decrease) in accounts payable and accrued liabilities		(172	)		1,006
Increase (decrease) in deferred revenue		53			(385	)
Net cash provided by operations		8,853			5,605
Cash from investing activities
Purchase of property and equipment		(524	)		(449	)
Sales and purchases of marketable securities, net		1,846			(5,129	)
Decrease in other assets		44			17
Net cash provided by (used in) investing activities		1,366			(5,561	)
Cash from financing activities
Proceeds from exercise of stock options		2,277			918
Acquisition of Treasury Stock		(7,145	)		(611	)
Net cash provided by (used in) financing activities		(4,868	)		307
Effect of exchange rate on cash and cash equivalents		59			(74	)
Increase in cash and cash equivalents		5,410			277
Cash and cash equivalents at beginning of period		31,137			34,086
Cash and cash equivalents at end of period	$	36,547		$	34,363

About Non-GAAP Financial Measures

The Company provides non-GAAP measures for net income and net income per share data as supplemental information regarding the Company’s core business operational performance. The Company believes that these non-GAAP financial measures are useful to investors because they exclude certain non-operating or non-recurring charges. The Company’s management excludes these non-operating or non-recurring charges when it internally evaluates the performance of the Company’s business and makes operating decisions, including internal budgeting, performance measurement and the calculation of bonuses and discretionary compensation. In addition, these non-GAAP measures more closely reflect the essential revenue generation activities of the Company and the direct operating expenses (resulting in or from cash expenditures) needed to perform these revenue generating activities. Accordingly, management excludes the amortization of purchased intangible assets related to the Data Junction acquisition, stock-based compensation related to employee stock options, and significant and non-recurring charges.

The Company believes that providing the non-GAAP measures that management uses is useful to investors for two primary reasons. First, it provides a consistent basis for investors to understand the Company’s financial performance on a trended basis across many historical periods, particularly given the adoption of SFAS 123R at the beginning of fiscal year 2006 and the changes it has introduced for calculating stock-based compensation expenses relative to prior periods. And second, it allows investors to evaluate the Company’s performance using the same methodology and information as that used by the Company’s management.

Non-GAAP measures are subject to material limitations as these measures are not in accordance with, or a substitute for, US GAAP and therefore the Company’s definition or interpretation may be different from similar non-GAAP measures used by other companies and independent financial analysts. However, the Company’s management compensates for these limitations by providing the relevant and detailed disclosure of the items excluded in the calculation of non-GAAP net income and net income per share, which should be supplementaly considered when evaluating the Company’s results. In addition, items such as amortization of purchased intangibles, stock compensation charges and significant and non-recurring items that are excluded from non-GAAP net income and earnings per share can have a significant impact on earnings. Management compensates for these limitations by evaluating the non-GAAP measure together with the most directly comparable GAAP measure. The Company has historically provided non-GAAP measures to the investment community as a supplement to its GAAP results, to enable investors to evaluate the Company’s core operating performance the way management does. The non-GAAP adjustments, and the basis for excluding them, are outlined below:

Amortization of Purchased Intangibles

The Company has recorded amortization of acquired intellectual property intangibles, included in its GAAP financial statements, related to the acquisition of Data Junction. Management excludes these items for purposes of calculating non-GAAP net income and non-GAAP net income per share. The Company believes that eliminating this expense in determining its non-GAAP measures is useful to investors because doing so provides a consistent basis for investors to understand the Company’s financial performance on a trended basis across many historical periods, it allows investors to evaluate the Company’s performance using the same methodology and information as that used by the Company’s management, and it allows a comparison with other peer companies in the software industry, many of whom use similar non-GAAP financial measures to supplement their GAAP results. Finally, the Company believes that non-GAAP measures of profitability that exclude amortization of acquired intellectual property intangibles are widely used by analysts and investors in the software industry.

Stock-based Compensation Expense

The Company has incurred stock based compensation expense as determined under SFAS 123R for the quarters ending on or after September 30, 2005, and under APB 25 for earlier comparable periods in its GAAP financial results. Since stock based compensation is a non-cash charge, the Company excludes this item for the purposes of calculating non-GAAP net income and non-GAAP net income per share. In addition, the exclusion of stock based compensation from the non-GAAP measures is done to allow a

consistent basis for investors to understand the Company’s financial performance on a trended basis across many historical periods, allow investors to evaluate the Company’s performance using the same methodology and information as that used by the Company’s management, and allow a comparison with other peer companies in the software industry, many of whom use similar non-GAAP financial measures to supplement their GAAP results. The very nature of the stock-based compensation expense also makes it very difficult to estimate prospectively, since the expense will vary with changes in the stock price and market conditions at the time of new grants, varying valuation methodologies, subjective assumptions and different award types, making the comparison of current results with forward looking guidance potentially difficult for investors to interpret. The tax effects of stock based compensation expenses may also vary significantly from period to period, without any change in underlying operational performance, thereby obscuring the underlying profitability of core revenue generating operations relative to prior periods (including prior periods following the adoption of SFAS 123R). Finally, the Company believes that non-GAAP measures of profitability that exclude stock-based compensation are widely used by analysts and investors in the software industry.

Management Restructuring Charge

In the quarter ending March 31, 2006, the Company incurred significant severance and legal expenses associated with certain senior management changes, namely the departures of the Company’s President and Chief Executive Officer, the Vice President of Corporate Development and the Vice President of Marketing. These expenses which totaled approximately $0.8 million were significant and non-recurring in nature. The Company believes that these expenses are not consistently recurring and do not necessarily reflect expected future operating expense, nor does the Company believe that they provide a meaningful evaluation of current versus past business results or the expense levels required to support the Company’s operating plan.

Income Tax Adjustment

Income taxes represent a complex element of any company’s income statement and effective tax rates can vary widely from year to year and from company to company, especially in periods in which adjustments are made to a company’s valuation reserve for deferred tax assets. The Company uses a statutory tax rate of 34% to reflect income tax adjustments in presentation of its non-GAAP net income and non-GAAP earnings per share. Utilization of a statutory tax rate for presentation of the non-GAAP measures is done to allow a consistent basis for investors to understand the Company’s financial performance on a trended basis across many historical periods, allow investors to evaluate the Company’s performance using the same methodology and information as that used by the Company’s management, and allow a comparison with other peer companies in the software industry, many of whom use similar non-GAAP financial measures to supplement their GAAP results. Finally, the Company believes that non-GAAP measures of profitability that are based on more standardized statutory tax rates are widely used by analysts and investors in the software industry.

Pervasive Software Inc.

Reconciliation of GAAP Measures to Non-GAAP

(in thousands, except per share data)

(Unaudited)

	Three months ended March 31,						Nine months ended March 31,
	2007			2006			2007			2006
	Net Income			Net Income			Net Income			Net Income
GAAP	$	859		$	354		$	2,150		$	1,185
Amortization of intangible assets—cost of product licenses		317			317			951			951
Stock-based compensation—cost of services and other		16			28			51			90
Stock-based compensation—sales and marketing expense		130			218			454			762
Stock-based compensation—research and development expense		62			115			179			437
Stock-based compensation—general and administrative expense		274			284			918			1,107
Management restructuring charges		—			771			—			771
Income tax adjustment for non-GAAP		(317	)		(710	)		(974	)		(1,737	)
Non-GAAP	$	1,341		$	1,377		$	3,729		$	3,566
GAAP net income per share—diluted	$	0.04		$	0.02		$	0.10		$	0.05
Non-GAAP net income per share—diluted	$	0.06		$	0.06		$	0.17		$	0.15
Shares used to compute GAAP net income per share—diluted		21,731			22,805			21,931			22,428
Shares used to compute non-GAAP net income per share—diluted		22,144			23,543			22,500			23,319