(June 6, 2003) - Today, Oracle announced that it will begin a cash tender offer to purchase all of the outstanding shares of PeopleSoft, Inc. for $16 per share, or approximately $5.1 billion. "The acquisition of PeopleSoft will immediately make Oracle an even more profitable and competitive company," said Oracle's chairman and CEO, Larry Ellison. "Although we will not be actively selling PeopleSoft products to new customers, we will provide enhanced support for all PeopleSoft products. Furthermore, we will be incorporating the advanced features from the PeopleSoft products into future versions of the Oracle eBusiness Suite."

In connection with announcing the tender offer, Mr. Ellison has submitted a letter to PeopleSoft's Board of Directors in which he expressed a desire to discuss the offer with the Board.

The tender offer will be subject to customary conditions, including expiration of the applicable Hart-Scott-Rodino waiting period, a majority of PeopleSoft's shares on a fully diluted basis being tendered and not withdrawn, and the redemption or amendment of PeopleSoft's shareholder rights plan. The offer will not be subject to due diligence or financing. Oracle expects to commence the tender offer on Monday, June 9, 2003. Credit Suisse First Boston LLC has provided a bridge financing facility and is advising Oracle on the transaction.

PeopleSoft has recently signed a merger agreement with J.D. Edwards & Company that is subject to several conditions and is not scheduled to be completed until this fall. Once Oracle's acquisition of PeopleSoft is complete, it will review whether, and on what terms, Oracle would support that transaction.

In addition, Oracle Corporation announced that, based on preliminary results, the company expects to report fiscal fourth quarter GAAP earnings per share of $0.14 to $0.15.