PeopleSoft To Maintain Current Accounting For Employee Stock Options

Business Wire, August 12, 2002

Business Editors

PLEASANTON, Calif.--(BUSINESS WIRE)--Aug. 12, 2002

PeopleSoft, Inc. (Nasdaq:PSFT) today announced it would continue to account for employee stock options, using the intrinsic value method as permitted by Financial Accounting Standard 123.

According to PeopleSoft Chief Financial Officer Kevin Parker, the Company grants stock options on a broad basis as incentives for innovation and to align employee interests with those of the Company's shareholders. PeopleSoft is an innovation leader, having pioneered generational shifts in software computing for 15 years.

"Expensing stock options will discourage companies from using them as incentives for innovation," Parker said. "In a competitive global economy, innovation and the creation of shareholder value have helped the U.S. maintain its economic leadership."

More than 80 percent of PeopleSoft's 8,500 employees have been granted stock options, with senior management holding less than 12 percent of the total.

About PeopleSoft

PeopleSoft (Nasdaq:PSFT) is the world's leading provider of application software for the real-time enterprise. PeopleSoft pure Internet software enables organizations to reduce costs and increase productivity by directly connecting customers, suppliers, partners and employees to business processes on-line, in real time. PeopleSoft's integrated, best-in-class applications include Customer Relationship Management, Supply Chain Management, Human Capital Management and Financial Management. More than 4,700 organizations in 140 countries run on PeopleSoft software. For more information, visit us at www.peoplesoft.com.

Note to Editors: PeopleSoft and the PeopleSoft logo are registered trademarks. All other company and product names may be trademarks of their respective owners.