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 CORPORATION ANNOUNCES
FISCAL 2005 FIRST QUARTER RESULTS

IRVINE, CA.- August 3, 2004 –

• Operating Cash Flow Improvement of $1.0 million Year over Year
• Cash Balance increased to $8.3 million
• First Quarter EBITDA improvement of 21% Year over Year

Raining Data Corporation (Nasdaq: RDTA) today announced financial results for the first quarter of fiscal year 2005. Net revenues for the quarter ended June 30, 2004 were $5.2 million as compared to $5.4 million for the same period in the prior year. The Company improved its operating loss for the first quarter to $0.1 million compared to a loss of $0.2 million for the first quarter in the prior year. Loss per share for the quarter improved to $0.02 for the three months ended June 30, 2004 as compared to a loss per share of $0.03 in the same period in the prior year.

Cash balances increased to $8.3 million at June 30, 2004 from $7.8 million at March 31, 2004. Cash flow from operating activities improved by $1.0 million to $0.6 million for the year three months ended June 30, 2004 compared to negative $0.4 million for the same period in the prior fiscal year.

Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) for the three months ended June 30, 2004 was $0.7 million or 13% of revenue as compared to $0.6 million or 11% of revenue for the same period in the prior year. The Company computes EBITDA, as reflected in the table appearing at the end of this press release, by adding depreciation, intangible and non-goodwill amortization and non-cash stock-based compensation expense to its GAAP reported net loss. The Company also reconciles EBITDA to the GAAP disclosure of net cash provided by (used for) operating activities.

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 .NETTM 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 approximately 145 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 may contain forward-looking statements. 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 ended June 30, 2004 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. All other trademarks and registered trademarks are properties of their respective owners.