PRESS RELEASE

Contact Information

Raining Data Corporation
17500 Cartwright Rd.
Irvine, CA 92614-5846
Brian C. Bezdek, Chief Financial Officer
Phone: (949) 442-4400
Fax: (949) 250-8187
brian.bezdek@rainingdata.com

RAINING DATA ANNOUNCES
FOURTH QUARTER AND FISCAL YEAR END
MARCH 31, 2003 RESULTS

IRVINE, CA.- May 20, 2003

• Fourth Quarter Year over Year Revenue Increase of 23%
• Fiscal Year over Year Revenue Increase of 9%
• Operating Cash Flow Improvement of $1.0 million Year over Year
• Fourth Quarter EBITDA of $1.2 Million or 19% of Revenue
• Full Fiscal Year over Year EBITDA Improvement of $4.9 Million

Raining Data Corporation (Nasdaq: RDTA) today announced financial results for the fourth quarter and full fiscal year ended March 31, 2003. Revenue for the fourth quarter increased 23% to $6.1 million from $4.9 million for the quarter ended March 31, 2002. Revenue for fiscal year 2003 increased 9% to $21.0 million from $19.3 million the prior fiscal year.

The Company recorded an operating profit of $0.4 million for the quarter ended March 31, 2003 as compared to an operating loss of $3.4 million for the same period in the prior year. The Company recorded break-even operating results for fiscal year 2003 as compared to an operating loss of $16.3 million in the prior fiscal year. Results for the quarter and fiscal year ended March 31, 2002 include goodwill amortization of $2.9 million and $10.6 million, respectively. No goodwill amortization was recorded for the quarter and year ended March 31, 2003 due to the adoption of Statement of Financial Accounting Standards No. 142 on April 1, 2002.

For the quarter ended March 31, 2003, net loss was $0.1 million compared to a net loss of $4.7 million for the same period in the prior fiscal year. Net loss for the year ended March 31, 2003 was $3.4 million compared to a net loss of $20.4 million in the prior fiscal year.

Net loss per share was $0.01 for the quarter and $0.19 for the year ended March 31, 2003 compared to a net loss per share of $0.27 and $1.23 for the quarter and year ended March 31, 2002, respectively.

Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) for the quarter ended March 31, 2003 improved by $1.0 million to positive $1.2 million, or 19% of revenue compared to $0.2 million, or 3% of revenue, for the quarter ended March 31, 2002. EBITDA for the year ended March 31, 2003 improved by $4.9 million to a positive $3.3 million, or 16% of revenue, from a negative $1.6 million for the prior fiscal year. The Company computes EBITDA, as reflected in the table appearing at the end of this press release, by adding depreciation, goodwill and non-goodwill amortization and non-cash stock-based compensation expense to its GAAP reported operating income (loss).

Cash balances increased $0.8 million or 17% to $5.3 million at March 31, 2003 from $4.5 million at March 31, 2002 and increased during the quarter by $2.5 million from $2.8 million at December 31, 2002. Cash flow from operating activities improved to $0.9 million for the year ended March 31, 2003 from a negative $0.2 million in the prior fiscal year.

“The fourth quarter capped off a fiscal year in which the Company saw a significant improvement in its operating results and a strengthening of its balance sheet,” said Carlton H. Baab, President and CEO. “We have been able to achieve this turn-around in the financial results while continuing to invest in our product development efforts. In addition to many updates and new releases of our core Pick and Omnis products, we announced the launch of two new product lines with the Company’s first XML data management server product, TigerLogic XDMS, which includes our own patent-pending technology, as well as our support for the Microsoft .Net development environment and framework with our Pick Data Provider for .Net product line. We are committed to serving the evolving needs of our customers and to the expansion of our intellectual property assets,” added Baab.

About Raining Data

Raining Data Corporation (Nasdaq: RDTA), headquartered in Irvine, California, has been providing reliable data management and rapid application deployment solutions for developers of database applications for more than two decades. Raining Data's flagship products include: 1) high-performance TigerLogic™ XML Data Management Server (XDMS), which provides flexible, scalable and extensible storage and retrieval of critical business data across a variety of structured and unstructured information sources, delivering mid-tier scalability and transactional integrity of enterprise databases as well as dynamic extensibility and ease of use, mostly found in repositories and file systems; 2) D³®, mvEnterprise® and mvBase® family of powerful Pick® based hierarchical multi-dimensional database management systems that are the choice of more than a thousand application developers worldwide; 3) the Pick Data Provider for .Net™ which allows D³, UniData® and UniVerse® database platform users to take advantage of the .Net Framework by utilizing Microsoft Visual Studio® .Net by serving as a bridge between an application and the data source; and 4) Omnis Studio®, a powerful, cross-platform, object-oriented RAD tool for developing sophisticated thick-client, Web-client or ultra thin-client database applications.

The Raining Data customer installed base includes more than 500,000 active users, representing over 20,000 customer sites worldwide with a significant base of diverse vertical applications. With 150 employees in four countries, the company has an extensive distribution channel, 24x7 customer support and a strong international presence. More information about Raining Data Corporation and its products can be found at www.rainingdata.com.

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Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding the Company’s future financial performance. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the success of the Company’s research and development efforts to develop new products and to penetrate new markets, the market acceptance of the Company’s new products and updates, technical risks related to such products and updates, the Company’s ability to maintain market share for its existing products, the availability of adequate liquidity and other risks and uncertainties. Please consult the various reports and documents filed by Raining Data Corporation with the U.S. Securities and Exchange Commission, including but not limited to the Company’s most recent reports on Form 10-KSB and Form 10-QSB for factors potentially affecting the Company’s future financial results. All forward-looking statements are made as of the date hereof and the Company disclaims any responsibility to update or revise any forward-looking statement provided in this news release. The Company’s results for the quarter and year ended March 31, 2003 are not necessarily indicative of the Company’s operating results for any future periods.

Raining Data, Pick, mvDesigner, D³, mvEnterprise, mvBase, Omnis and Omnis Studio are registered trademarks and TigerLogic is a trademark of Raining Data Corporation. Microsoft and Visual Studio are registered trademarks and .Net is a trademark of the Microsoft Corporation. UniData and UniVerse are registered trademarks of International Business Machines Corporation. All other trademarks and registered trademarks are properties of their respective owners.