PowerCerv Corporation Announces Shareholder Approval and Implementation of Reverse Stock Split

TAMPA, Fla.--(BUSINESS WIRE)--June 4, 2001--PowerCerv Corporation (Nasdaq:PCRVC - news) announced today that at its annual meeting of shareholders held on June 1, 2001, shareholders approved a proposal to amend PowerCerv's articles of incorporation to effect a reverse stock split of the company's issued and outstanding shares of common stock.
By approving the proposed amendment, shareholders authorized

PowerCerv's Board of Directors to implement the reverse stock split, in the ratio determined by the Board to be in the best interests of the shareholders at the time of implementation. Following the annual meeting, the Board determined to effect the reverse stock split of 1-for-9.

Shareholder approval of the proposed amendment follows the previously announced determination of a Nasdaq Listing Qualifications Panel to transfer the listing of PowerCerv's common stock to The Nasdaq SmallCap Market. The transfer was effective with the open of trading on May 18, 2001. The Board proposed the amendment in an effort to achieve compliance with the $1.00 per share minimum bid price requirement, one of the various continued listing standards established by Nasdaq. The Board selected the 1-for-9 split ratio with the expectation that it will result in the increase in the per share trading price of the common stock to well above the $1.00 per share level, based on an assumed rise in the market price of the common stock proportional to the reduction in the number of shares of common stock outstanding as a result of the reverse stock split. However, there can be no assurance that effecting the reverse stock split will enable PowerCerv to achieve compliance with the minimum bid price requirement or that
PowerCerv will be able to meet all other quantitative Nasdaq SmallCap Market continued listing standards.

The reverse stock split became effective as of the close of business on June 1, 2001. The stock will begin trading on a post-reverse stock split basis on June 5, 2001, and therefore for a period of twenty trading days thereafter the company's common stock will trade under the Nasdaq symbol of ``PCRCD'' to apprise market participants that the stock is trading on the post-reverse stock split basis. At the end of that twenty day period, the common stock will again trade under the symbol ``PCRVC,'' (with the appended ``C'' indicating the temporary exception under which the company's common stock will continue to be listed.) The new CUSIP number of the common stock is 73931P204.

``We're extremely pleased that our shareholders have endorsed this action and given our management team a vote of confidence,'' notes Marc Fratello, chairman and chief executive officer of PowerCerv. ``We believe it's important to maintain high visibility with current and potential investors. We believe that the reverse stock split will allow us to maintain our listing on The Nasdaq SmallCap Market.''

Shareholders will receive a letter of transmittal in the near future requesting them to send in their old stock certificates in exchange for new ones reflecting the post-split number of shares. PowerCerv will not issue scrip or fractional shares in connection with the reverse stock split. Shareholders who would otherwise be entitled to receive fractional shares because they hold a number of shares not evenly divisible by the split ratio will be entitled, upon surrender of certificates representing their shares, to receive a cash payment in lieu thereof based upon the average closing price per share of the common stock as reported on Nasdaq for the ten trading days immediately prior to the effective date.

ABOUT POWERCERV

PowerCerv provides Integrated Enterprise Response to small to midsize manufacturers and distributors. Featuring fully integrated enterprise applications with innovative e-business capabilities, PowerCerv solutions enable companies to completely integrate and extend the management of front-office and back-office operations. With Integrated Enterprise Response, companies extend their enterprise operations across the virtual supply chain and successfully respond to customers, suppliers, partners and employees around the world. For more information contact PowerCerv at (813) 226-2600, fax (813) 222-0886 or visit www.powercerv.com.

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