STATE & LOCAL GOVERNMENT MARKET EMBRACES PEOPLESOFT FOR PUBLIC SECTOR

41 NEW CUSTOMERS LICENSE FINANCIAL AND HUMAN RESOURCE APPLICATIONS IN PAST
12 MONTHS

BETHESDA, MD, MAY 20, 1996 --PeopleSoft, Inc. (NASDAQ: PSFT), a leading
provider of client/server administrative solutions for the public sector
market, today announced that over the past 12 months, more than 41
customers have licensed PeopleSoft's business software to improve delivery
of service and operational efficiency. PeopleSoft offers products
specifically designed to meet the unique needs of the public sector,
including state, local and municipal governments. PeopleSoft has recorded
steady public sector customer and revenue growth in excess of 100 percent
over the previous year.

PeopleSoft currently has nearly 100 public sector customers, including:
City of Pittsburgh (Penn.), Denver (Colo.) Water Department, Kings County
Board (Calif.) of Supervisors, San Diego (Calif.) County Water Authority,
San Francisco (Calif.) Unified School District, Seminole County (Fla.)
Public Schools, and the State of Vermont Department of Personnel.

"PeopleSoft products such as PeopleSoft Financials and HRMS are being
implemented in government organizations seeking to increase service and
operate at a more efficient level," said Sherry Amos, director of public
sector product strategy at PeopleSoft. "Public sector organizations are
facing clear mandates to improve services through the use of modern
technology. Demand and licensing for our public sector software products
ranges from municipal and county enterprise governments to statewide
agency implementations. This demand for our proven software products is a
direct result of our commitment to providing complete software solutions
for the public sector enterprise that empower these organizations to
respond rapidly to change."

CITY OF PITTSBURGH CHOOSES PEOPLESOFT

The City of Pittsburgh has licensed PeopleSoft Financials for Public Sector
products including General Ledger, Payables, Receivables, Purchasing, and
Asset Management as well as PeopleSoft Human Resources and Payroll. Using
PeopleSoft applications, the city will be able to research spending
trends, track costs by project (e.g. bridge construction, road paving,
etc.), and budget for specific programs. The city has also selected
Andersen Consulting to provide comprehensive implementation services.

"PeopleSoft is an excellent software company," said Steven J. Schmitt,
Director, City Information Systems for the City of Pittsburgh. "The
company delivers solid product and technical excellence to its customers
to meet the unique needs of municipal governments such as ours. We are
excited about the potential of PeopleSoft products to fundamentally change
the way we run city government, and ultimately to improve service to the
public." Pittsburgh's goal is to transition all systems to a client/server
environment at all levels within three years. Quantitative analysis has
revealed that PeopleSoft applications could recoup the City of
Pittsburgh's entire investment within three years of implementation.

PEOPLESOFT AND ANDERSEN CONSULTING TEAM FOR COMPLETE SOLUTIONS

Since October 1993, PeopleSoft and Andersen Consulting have worked together
to deliver enterprise application products and services to state and local
governments as part of a unique partnership. These comprehensive
client/server solutions include PeopleSoft Financials for Public Sector
and PeopleSoft Human Resources software coupled with extensive
implementation, change management and business process re-engineering
services from Andersen Consulting.

ABOUT PEOPLESOFT FOR PUBLIC SECTOR

PeopleSoft is a leading application software provider whose mission is to
provide innovative software solutions that meet the changing business
demands of large, enterprise organizations. The company's public sector
strategy is to serve the industry through a dedicated business unit
staffed with tailored sales, marketing, product strategy, development, and
service initiatives.

PeopleSoft Financials for Public Sector includes: General Ledger, Payables,
Receivables, and Purchasing. These software products are tailored to meet
the specific needs of provincial, state, and local governments as well as
non-profit institutions and publicly funded entities. Additional
commercially available applications include Inventory, Asset Management,
Project Costing, Billing and Budgets.

PeopleSoft HRMS includes: Human Resources, Benefits Administration,
Flexible Spending Accounts (FSA) Administration, Payroll, Payroll
Interface, Time and Labor, and Pension Administration. These applications
take a fresh approach to traditional human resources, payroll, and
benefits, and provide rich functionality to handle HR management.

ABOUT ANDERSEN CONSULTING

Andersen Consulting is an international management and technology
consulting organization whose mission is to help its clients change to be
more successful. The organization works with clients from a wide range of
industries to integrate their people, processes, strategies, and
technologies. Andersen Consulting has more than 38,000 people across 150
offices in 48 countries.

In its administrative and financial systems practice for government
agencies, Andersen Consulting has worldwide experience and deep skills in
providing customized solutions for state, provincial, national, and local
governments. Worldwide, Andersen Consulting's government practice has
generated nearly $400 million in revenue in 1995 with a base of more than
600 public service agency clients.

ABOUT PEOPLESOFT, INC.

PeopleSoft, Inc. (NASDAQ: PSFT) was established in 1987 to provide
innovative software solutions that meet the changing business demands of
enterprises worldwide. A client/server applications pioneer and market
share leader, PeopleSoft develops, markets, and supports a complete suite
of enterprise solutions for accounting, materials management,
distribution, manufacturing, and human resources. With more than 1,000
customers around the world, the company has been recognized for both its
award-winning customer service and remarkable growth. PeopleSoft was
listed by Fortune Magazine as one of the fastest growing companies in
America in 1995. PeopleSoft product and service information is located on
the World Wide Web at http://www.peoplesoft.com, via fax-on-demand at
1-800-296-0937 or by calling 1-800-947-7753.
 
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