Press Release: July 31, 2001

WR Hambrecht + Co Initiates Coverage of Peregrine Systems (PRGN) with a Buy Rating and $38 Price Target

San Francisco, CA, July 31, 2001—WR Hambrecht + Co today initiated research coverage on Peregrine Systems (PRGN) with a Buy rating and a $38 price target. WR Hambrecht’s Business Applications analyst Rich Petersen cites the market opportunity in enterprise software, the company’s strong customer base and a discounted relative valuation as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real time at www.wrhambrecht.com.

“We believe that Peregrine will continue to outperform most other software companies in the current software sales environment. The catalyst driving Peregrine’s growth is the return on investment characteristics of Peregrine software, coupled with corporations’ increased need to reduce recurring operating costs,” Petersen said.

Petersen added, “The principal reason Peregrine is able to continue selling in spite of the difficult environment is that corporations will still spend money in order to save money, and may actually increase their investment in projects that reduce their recurring operating expenses. The cost savings afforded by an average Peregrine implementation offer very rapid payback and lead to very high returns on investment.”

WR Hambrecht + Co estimates Peregrine to post EPS of $0.62 on revenues of $795 million in fiscal 2002 and $0.87 on $1.1 billion in fiscal 2003. Peregrine reported an EPS of $0.53 on $565 million in fiscal 2001.

Peregrine Systems Inc. is a global provider of software and services that are designed to reduce the frictional cost of doing business for its clients’ organizations.