Exhibit 99.1

PERVASIVE SOFTWARE REPORTS FIRST QUARTER RESULTS

AUSTIN, TEXAS – October 19, 2004—Pervasive Software^® Inc. (Nasdaq:PVSW), a global value leader in data infrastructure software, today announced results for the first quarter ended September 30, 2004, consistent with preliminary results announced October 1, 2004.

Revenue, as reported under generally accepted accounting principles (GAAP), was $11.8 million for the first quarter of fiscal year 2005, compared to $9.4 million for the first quarter of last fiscal year. Net income was $0.8 million, or $0.03 diluted earnings per share, for the first quarter, compared to net income of $1.4 million, or $0.08 diluted earnings per share, for the first quarter of last fiscal year. On a pro forma basis, as described below, Pervasive realized pro forma net income of $1.1 million, or $0.05 diluted earnings per share, in the first quarter of fiscal year 2005, compared to net income of $1.4 million, or $0.08 diluted earnings per share, in the first quarter of last fiscal year. Our first quarter results are consistent with the range of preliminary guidance provided for the quarter in our press release dated October 1, 2004.

“Although our first quarter results were disappointing, Pervasive continues to make progress in a software market defined by decidedly disciplined spending,” said David Sikora, president and CEO, Pervasive Software. “While we had obviously expected to be able to drive greater growth in our integration product line to offset the pressures on our more mature database business, our message around low cost, high value data infrastructure serving the mid-market continues to resonate with our customers and we strongly believe that being the low cost, high value leader is a value proposition that will prevail. We continue to deliver on the strategic roadmap we put forth over two years ago, building a company positioned to capture opportunities in the small to midsize business data infrastructure software market.”

As a reflection of its continued confidence in the company’s future, Pervasive acquired 209,600 shares of Pervasive common stock on the open market at a total cost of approximately $1.25 million, during the quarter ended September 30, 2004. This was the first acquisition of shares of Pervasive common stock under our $5.0 million stock repurchase program announced in July, 2003.

Business Outlook

For the second fiscal quarter ending December 31, 2004, Pervasive expects revenue to be in the range of $11.3 million to $12.3 million and GAAP-basis diluted earnings per share of $0.02 to $0.04. GAAP-basis profitability is expected to include amortization of purchased intangibles of approximately $0.3 million in the second quarter of fiscal year 2005.

Pervasive management believes that the pro forma results described in this release are useful for an understanding of Pervasive’s ongoing operations because GAAP results include non-cash charges associated with the amortization of purchased intangibles. Management uses these pro forma results to compare the company’s performance to that of prior periods for analysis of trends, and to evaluate the company’s financial strength, develop budgets, manage expenditures and develop a financial outlook. Pro forma results are supplemental and are not intended as a substitute for GAAP results.

Conference Call Details

Pervasive will host a conference call to discuss these results with the investment community today at 5 P.M. Eastern time. The conference call will be broadcast live through a link on the Investor Relations page on the Pervasive Web site at www.pervasive.com. Please go to the Web site at least 15 minutes prior to the call to register, download and install any necessary audio software. The dial-in numbers for the call are 800-894-5910 or 785-424-1052. The conference ID is “PVSW.”

For those who cannot attend the live broadcast, a replay will be available by calling 888-274-8335 or 402-220-2327 from two hours after the call ends until midnight (Eastern) on October 26, 2004. Additionally, the Webcast will be archived on Pervasive’s website at www.pervasive.com/ircalendar.

About Pervasive Software

Pervasive Software is a global value leader in data infrastructure software. The company’s award-winning products enable customers to manage, integrate, analyze and secure their critical data, providing the industry’s best combination of performance, reliability and cost. Pervasive’s strength is evidenced by the size and diversity of its customer base, serving tens of thousands of customers in virtually every industry market around the world. With headquarters in Austin, Texas, Pervasive was founded in 1994 and sells its products into more than 150 countries. More information may be found on the Web at http://www.pervasive.com.

Cautionary Statement

This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements included in this document are based upon information available to Pervasive as of the date hereof, and Pervasive assumes no obligation to update any such forward-looking statement.

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All Pervasive brand and product names are trademarks or registered trademarks of Pervasive Software Inc. in the United States and other countries. All other marks are the property of their respective owners.

Pervasive Software Inc.

Condensed Consolidated Statements of Operations (GAAP) (A)

(in thousands, except per share data)

(Unaudited)

Pervasive Software Inc.

Pro Forma Condensed Consolidated Statements of Operations (A)

(in thousands, except per share data)

(Unaudited)

Pervasive Software Inc.

Condensed Consolidated Balance Sheets

(in thousands)