(June 19, 2003) - On Wednesday, Oracle increased its cash tender offer to purchase all of the outstanding shares of PeopleSoft, Inc. to $19.50 per share, or approximately $6.3 billion. In response, PeopleSoft requested that its stockholders take no action until its board of directors could review Oracle's offer and make recommendations. Meanwhile, the State of Connecticut has filed an antitrust lawsuit against Oracle, to block the hostile takeover of PeopleSoft.

"Connecticut is taking the necessary steps to protect our taxpayers. Oracle's hostile takeover bid has the potential to cost the state millions of dollars and is a threat to the progress we have made in recent years in technology improvements" said Governor John G. Rowland. "PeopleSoft has been key to the state's progress and this potential takeover could derail our gains and that is unacceptable."

"The takeover would cripple competition, threatening higher prices and lower quality, and cause terrible waste in the human and financial investments already made," said Connecticut Attorney General Richard Blumenthal "Oracle is threatening to force its products on consumers by illegally seizing a key rival and thus amassing market dominance."

On June 18, PeopleSoft began a stock exchange offer with J.D. Edwards, offering stockholders cash or PeopleSoft common stock, at their choice, with a value equal to $7.05 in cash plus the value of 0.43 of a PeopleSoft common share for each share of J.D. Edwards common stock they own.

"Oracle remains committed to acquiring PeopleSoft and will not be deterred by management's maneuvers to maintain control of a company they do not own," said Oracle chairman and CEO Larry Ellison. "Contrary to what PeopleSoft management would have you believe, Oracle intends to fully support PeopleSoft customers and products for many years to come. Satisfying those customers is the key to the success of this acquisition."

In addition, Oracle filed suit in Delaware against PeopleSoft, its board of directors, and J.D. Edwards & Company in response to their collective efforts to eliminate PeopleSoft shareholders' ability to accept Oracle's tender offer. Oracle contends that PeopleSoft and its board breached their fiduciary duties, including failure to act in the best interest of PeopleSoft's shareholders. Oracle seeks, among other things, rescission of the amended J.D. Edwards merger agreement and redemption of the PeopleSoft "poison pill".

On June 13, PeopleSoft sued Oracle over what it characterizes as a sham tender offer aimed at destroying PeopleSoft's business. The complaint, filed in Alameda County Superior Court, alleged that Oracle engaged in unfair business practices, trade libel and tortious interference with PeopleSoft's customer relationships.

According to the suit, Oracle's true intent in making the tender offer was to undercut PeopleSoft's business operations by disparaging PeopleSoft's products, services, and future prospects, undermine PeopleSoft's viability by creating uncertainty and doubt in the minds of PeopleSoft's customers and prospective customers, and interfere with PeopleSoft's plan to merge with J. D. Edwards and Company.

PeopleSoft also alleged that Oracle's media campaign grossly misleads the market concerning Oracle's ability to provide continuing support to existing PeopleSoft customers, and fails to disclose the obstacles and costs facing PeopleSoft customers that would need to migrate to an Oracle platform. PeopleSoft characterizes Oracles' recent activities as "part of a scheme to freeze customer purchase decisions, and to adversely affect PeopleSoft's end-of-quarter sales."