ActiveState Achieves Record Growth

VANCOUVER, British Columbia – May 13, 2003 – ActiveState Corp., the leader in anti-spam software for enterprises and programming tools for open source developers, had a record year in 2002 and another record quarter in Q1 2003. The company has doubled in size in the past year and attained its best ever financial results in gross billings, profitability, and cash flow. Revenues increased by more than 100% over the preceding year, driven largely by the significant adoption of PureMessage, the company's enterprise email management software for spam protection, virus protection, and corporate policy enforcement.

Major customers include: Choice Hotels, Cornell University, EMC, Forbes, Handspring, Northrop Grumman, Pacific Gas & Electric, QLogic, SAP America, Stanford University, United Space Alliance, Verizon, Vignette, and Wyeth-Ayerst Pharmaceuticals. Over 70% of the Fortune 500 are ActiveState customers. This growth has fueled numerous senior hires both from the U.S. and locally from Vancouver. New members to ActiveState's executive team include Paul Maurer, vice president of sales, services, and customer care; and Kymber Hodges, vice president of marketing. These senior executives will be instrumental in driving the strategy behind the company's sales growth in the anti-spam market and successful penetration of large organizations.

Maurer has been an advisor to ActiveState for the past ten months, and will now join the company's executive team to lead its sales, services, and customer care organizations. He brings more than 20 years of sales expertise to ActiveState, and has led successful teams in sales, marketing, alliances, professional services, and product development. He comes to ActiveState from Oracle, where he was area vice president for Western Canada and held responsibility for large sales, support, and services.

Hodges has more than 15 years of management experience in brand management, promotions, advertising, interactive online marketing, and web development. Prior to joining ActiveState, Hodges was director of enterprise marketing at VeriSign. Previously, Hodges served as vice president of product marketing for RHC Media Inc, publishers of Red Herring. She also held a number of management positions at VISA USA, including director of operations and director of eVisa.

"Maurer and Hodges add depth to an already-strong management team, and will help provide the vision and experience we need to continue our profitable growth," said Steve Munford, president, ActiveState. "Leadership of this caliber ensures we are properly positioned to fully capitalize on the rapidly growing anti-spam and content filtering market, which is anticipated to reach $1.6 billion US by 2006. We're taking significant steps to effectively support our growth and customer base, including recent additions to our sales and marketing force, a new call center, and direct and online marketing initiatives."

"ActiveState has done a phenomenal job in capturing market share in the enterprise anti-spam space in the past year," said Paul Maurer, vice president of sales, services, and customer care, ActiveState. "I look forward to expanding an extremely talented team armed with an email filtering solution that is exceptionally well suited to the demanding needs of the large enterprise."

"I'm excited to take ActiveState's successful brand in the open source programming arena and help bring it to the same dominant position in email management," said Kymber Hodges, vice president of marketing. "We see a great synergy in our different lines of software and plan to capitalize on their common mindshare within the IT departments of large organizations."

To help maintain its 30% quarter-over-quarter growth, the company is continuing to add to its team and is hiring at all levels. More details can be found on our Careers page or email Careers@ActiveState.com.

About ActiveState Corp.

ActiveState is the leading provider of software solutions that increase developer productivity and organizational efficiency through the innovative use of open source technology. The company's PureMessage product empowers organizations to take control of their email communications to protect against spam and viruses, and to enforce email policy. Additional information on ActiveState's industrial strength anti-spam software for enterprises and programming tools for open source language developers is available at: www.ActiveState.com.

Media & Analyst Inquiries: Lori Pike, Director Corporate Communications 604.808.6655

ActiveState and PureMessage are trademarks of ActiveState Corp. All other company names herein may be trademarks of their respective owners. ActiveState Corporation 2003.

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