Peerless Systems Announces Mailing of Definitive Proxy Regarding Proposed Sale of Intellectual Property and Other Assets to Kyocera-Mita Corporation

EL SEGUNDO, CA--(Marketwire - March 31, 2008) - Peerless Systems Corporation (NASDAQ: PRLS) today announced it has commenced mailing its definitive proxy statement to stockholders for approval of its proposed sale of intellectual property and other assets to Kyocera-Mita Corporation ("Kyocera"), pursuant to an asset purchase agreement dated January 9, 2008. The Company has scheduled a special meeting of stockholders for Monday, April 28, 2008, at 9:00 a.m. PDT at Peerless Systems Corporation, 2381 Rosecrans Avenue, El Segundo, CA 90245. Stockholders of record as of the close of business on March 25, 2008, will be entitled to vote at the meeting.

The Company's Board of Directors has determined that the proposed asset sale is in the best interests of the Company and its stockholders and recommends that stockholders vote "FOR" the proposed sale.

Stockholders are encouraged to read the Company's definitive proxy materials in their entirety. The proxy materials, which were mailed on or about March 31, 2008, provide, among other things, a detailed discussion of the process that led to the proposed asset sale, the reasons behind the Board of Directors' recommendation and the risks involved with the sale. Additional copies of the proxy statement are available without charge from Peerless Systems Corporation and also may be obtained for free from the SEC's website at www.sec.gov. Stockholders who have questions about the asset sale or need assistance in submitting their proxy or voting their shares should contact the Company's proxy solicitor, MacKenzie Partners, Inc., toll free at (800) 322-2885.

Richard Roll, Peerless' President and CEO, said, "Approval of the asset sale is important to Peerless' future. Because a non-vote will have the same effect as a vote against approving the transaction, we urge stockholders to exercise their rights by voting their shares as soon as possible after they receive and review the proxy statement."

About Peerless Systems Corporation

Founded in 1982, Peerless Systems Corporation is a provider of imaging and networking technologies and components to the digital document markets, which include manufacturers of color, monochrome and multifunction office products and digital appliances. In order to process digital text and graphics, digital document products rely on a core set of imaging software and supporting electronics, collectively known as an imaging controller. Peerless' broad line of scalable software and silicon offerings enables its customers to shorten their time-to-market and reduce costs by offering unique solutions for multiple products. Peerless' customer base includes companies such as Canon, IBM, Konica Minolta, Kyocera Mita, Lenovo, OkiData, Ricoh, RISO, Seiko Epson and Xerox. Peerless also maintains strategic partnerships with Adobe and Novell. For more information, visit Peerless' web site at www.peerless.com.

Safe Harbor Statement Under The U.S. Private Securities Litigation Reform Act Of 1995

Statements made by us in this press release that are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management based on our current estimates, expectations, forecasts and projections and include comments that express our current opinions about trends and factors that may impact future operating results. Statements that use words such as we "believe," "anticipate," "estimate," "intend," "could," "plan," "expect," "project," "predict," "forecast," "outlook," "potential," "continue," "may," "future," "can," "enhance," and "should," or the negative of these, as well as similar expressions, can be used to identify forward-looking statements. These statements are not guarantees of future performance, rely on a number of assumptions concerning future events, many of which are outside of our control, and involve known and unknown risks and uncertainties that could cause our actual results, performance or achievements, or industry results, to differ materially from any future results, performance or achievements, expressed or implied by such forward-looking statements. Such risks and uncertainties include, among other things, satisfaction of the closing conditions of the asset purchase agreement with Kyocera, changing competitive and market conditions, our reliance on certain OEM customers for significant portions of our revenues, the sufficiency of our capital resources, any adverse change in our relationship with Adobe Systems Incorporated and/or Novell, Inc., increased competition both from in-house OEM products and low cost offshore competitors, the impact of Microsoft's Vista™ operating system, reduced demand for our existing monochrome technologies or other products, the rapid changes taking place in the emerging color print devices markets, our ability to realize contract backlog, our ability to identify new customers or place our technology in a broader base of products, our ability to leverage core competencies and find product segments that blend well with our core business, our ability to successfully enter new software application sectors, our ability to maintain our profit objectives and create compelling margins, the tenure of the competitive advantage of our old and new technologies, our reliance on block licensing, our ability to develop and market our advanced devices and software, the validity and protection of our intellectual property rights, risks associated with international business activities, our reliance on key personnel and our board of directors and our ability to execute our business plan and strategic partnering transactions.

The above risks, and others, are described in further detail in our reports filed with the Securities and Exchange Commission, including, but not limited to, those described under "Item 1A. Risk Factors" in our most recent Annual Report on Form 10-K for the fiscal year ended January 31, 2007, filed on April 13, 2007, and those described under "Item 1A. Risk Factors" in the most recent Quarterly Report on Form 10-Q for the quarter ended October 31, 2007, filed December 12, 2007.

Current and prospective stockholders are urged not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We are under no obligation, and expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements contained herein are qualified in their entirety by the foregoing cautionary statements.

Contact Information: Contacts: Peerless Systems Corporation: John Rigali Chief Financial Officer (310) 297-3146 Investor Contact: Geoff High Pfeiffer High Investor Relations, Inc. (303) 393-7044