Quarterly Results include Basic and Diluted Net Income of $0.32 per Share and Approximately $1.4 Million of Positive Cash Flows from Operating Activities

Versant Corporation (NASDAQ:VSNT), an industry leader in specialized data management, today announced its operating results for the second fiscal quarter ended April 30, 2006.

For the quarter, Versant reported revenues of $3.8 million from its continuing operations, compared to $3.2 million for the comparable period last year, representing an increase of approximately 18%. Net income for the quarter was $1.2 million and diluted net income per share was $0.32, compared to a net loss of $1.1 million and net loss per share of $0.30 for the comparable period last year.

Versant also reported positive net cash flows from its operating activities of approximately $1.4 million for the quarter, resulting in a cash and cash equivalents balance of approximately $5.9 million as of April 30, 2006.  This cash and cash equivalents position represents an increase of $1.9 million compared to $4.0 million in cash and cash equivalents at the Company’s most recent fiscal year end at October 31, 2005.

During the quarter, Versant also completed its multi-element restructuring plan with the sale of the assets of its WebSphere consulting practice on February 1, 2006.  Versant’s restructuring plan, which it announced on June 14, 2005, was designed to refocus the Company on its core object database business, obtain significant cost savings and operating expense reductions and improve its operating results. The proceeds from the sale of the WebSphere consulting practice are reflected as gain from sale of discontinued operations of $468,000 in the Company’s Statement of Operations for the three months ended April 30, 2006.

“We are pleased to report another quarter of strong net income for Versant", said Jochen Witte, CEO of Versant Corporation.  “Our net income and net income per share and strong positive cash flows from operating activities clearly reflect that we have successfully achieved the objectives of our restructuring plan”.

“Our net income for the first two quarters of fiscal 2006, inclusive of the gain from sale of our WebSphere practice, has nearly met the top end of our previously announced range of targeted net income for fiscal 2006. We are therefore raising our net income guidance by approximately $1.0 million to be within the range between $2.6 million and $2.9 million for fiscal 2006”, added Jochen Witte.

About Versant Corporation

Versant Corporation (NASDAQ: VSNT) is an industry leader in specialized data management software. Using Versant's solutions, customers cut hardware costs, speed and simplify development, significantly reduce administration costs, and deliver products with a strong competitive edge. Versant’s solutions are deployed in a wide array of industries including technology, telecommunications, financial services, transportation, manufacturing, and defense. With over 50,000 installations, Versant has been a highly reliable partner for over 15 years for Global 2000 companies such as Ericsson, Verizon, Sagem, U.S. Government, and Financial Times.  For more information, call 510-789-1500 or visit www.versant.com.

Forward Looking Statements Involve Risks and Uncertainties 

This press release contains 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, and is subject to the safe harbor created by those sections. These forward-looking statements include the statements regarding our current range of estimated net income in fiscal 2006 and our statements regarding the achievement of objectives of our restructuring plan.  Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties.  There are many important factors that could cause our actual results to differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, without limitation; the inability to achieve revenue expectations or net income as a result of delays in the sales cycle for our products and services, changing market demands or perceptions of our products and technologies, the performance of our resellers and the impact of our recent restructuring on our organization; the possibility that existing value added resellers may not remain committed to our software or that their sales activity may not keep pace with their historical results; that future sales levels will not meet expectations or may be delayed; adverse impacts on the prices we charge for our products and services due to competitive conditions; the impact of potentially reduced cash flows as a result of the sale of our WebSphere consulting practice; the impact of potential sales losses to customers not within our core database management business; the uncertainty as to the impact and duration of the current market reductions in corporate IT spending; the possibility that additional restructuring actions or similar events may be required, resulting in charges that would adversely affect net income or increase net loss; and the Company’s ability to successfully manage its costs and operations and maintain adequate working capital.  The forward-looking statements contained in this press release are made only as of the date of this press release, and the Company assumes no obligation to publicly update any forward-looking statement. Investors are cautioned not to place undue reliance on forward-looking statements.  Additional information concerning factors that could cause results to differ can be found in the Company’s filings with the Securities and Exchange Commission, including without limitation the Company’s most recent Annual Report on Form 10-KSB for the year ending October 31, 2005, its Quarterly Report on Form 10-Q for the quarter ended January 31, 2006 and its reports on Form 8-K and 8-K/A.

Versant is a registered trademark or trademark of Versant Corporation in the United States and/or other countries. All other products are a registered trademark or trademark of their respective company in the United States and/or other countries.

Conference Call Information

Versant will host a teleconference today to discuss the above after markets close. The details for the call are as follows:

Date: Tuesday May 30, 2006
Time: 1:30 PM Pacific (4:30 PM Eastern)
Dial-in number: +1-877-692-2590
International: +1-973-935-8508

Internet Simulcast*: http://viavid.net/dce.aspx?sid=00003141

^{* Windows Media Player needed for simulcast. Simulcast is voice only.}

Dial in 5-10 minutes prior to the start time. An operator will request your name and organization and ask you to wait until the call begins. If you have any difficulty connecting, please call the Liolios Group at +1-949-574-3860.

A replay of the conference call will be available until June 6, 2006 **
Replay number: +1-877-519-4471
International Replay number: +1-973-341-3080
Replay Pass Code: 7076009

^{** Enter the playback pass code to access the replay}

                     VERSANT CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                                (in thousands)

                                                         April 30, October 31,
                                                           2006        2005
                                                        ----------  ----------
    ASSETS                                              (unaudited)
    Current assets:
      Cash and cash equivalents                          $  5,902    $  3,958
      Trade accounts receivable, net of allowance of
       $20 and $114 at April 30, 2006 and October 31,
       2005 respectively                                    1,410       2,529
      Other current assets                                  1,027         744
                                                        ----------  ----------
      Total current assets                                  8,339       7,231

    Property and equipment, net                               407         489
    Goodwill                                                6,720       6,720
    Intangible assets, net                                  1,354       1,512
    Other assets                                              310         294
      Total assets                                       $ 17,130    $ 16,246
                                                        ==========  ==========
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                                   $    254    $    779
      Accrued liabilities                                   2,159       2,667
      Deferred revenues                                     3,107       2,779
      Deferred rent                                           142         136
                                                        ----------  ----------
      Total current liabilities                             5,662       6,361

    Long term restructuring accrual                           112         448
    Deferred revenues                                         144         184
    Deferred rent                                              60         128
    Variable interest entity liability                         --         137
                                                        ----------  ----------
      Total liabilities                                     5,978       7,258
                                                        ----------  ----------

    Stockholders' equity:
      Common stock, no par value                           94,820      94,755
      Deferred stock-based compensation                        --         (44)
      Other comprehensive income, net                         518         396
      Accumulated deficit                                 (84,186)    (86,119)
                                                        ----------  ----------
         Total stockholders' equity                        11,152       8,988
                                                        ----------  ----------
         Total liabilities and stockholders' equity      $ 17,130    $ 16,246
                                                        ==========  ==========

                     VERSANT CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except for per share amounts)
                                 (unaudited)

                                        Three Months Ended  Six Months Ended
                                        ------------------ ------------------
                                       April 30, April 30, April 30, April 30,
                                         2006      2005     2006       2005
                                         ----      ----     ----       ----
    Revenues:
      License                          $ 1,745   $ 1,575   $ 4,258    $ 5,067
      Maintenance                        1,457     1,543     3,090      3,135
      Professional services                578        92     1,057        290
                                       --------  --------  --------  --------
  Total revenues                         3,780     3,210     8,405      8,492

    Cost of revenues:
      License                               58        55       162        111
      Amortization of intangible assets     79       200       158        395
      Maintenance                          345       360       729        778
      Professional services                291       216       625        495
                                       --------  --------  --------  ---------
      Total cost of revenues               773       831     1,674      1,779
      Gross profit                       3,007     2,379     6,731      6,713
                                       --------  --------  --------  ---------

    Operating expenses:
      Sales and marketing                  765     1,630     1,711      3,350
      Research and development             702       955     1,571      2,036
      General and administrative           871     1,242     1,924      2,559
      Restructuring                         84      (122)      218       (122)
                                       --------  --------  --------  ---------
      Total operating expenses           2,422     3,705     5,424      7,823

    Income (loss) from operations          585    (1,326)    1,307     (1,110)
    Outside shareholders' loss from
     VIE                                    --        --       138         --
    Other income, net                       34       122        46        203
    Gain on the disposal of Variable
     Interest Entity                       131        --       131         --
                                       --------  --------  --------  ---------
    Income (loss) from continuing
     operations before taxes               750    (1,204)    1,622       (907)
    Net provision for income taxes          99        22       182         67
                                       --------  --------  --------  ---------
    Net income (loss) from continuing
     operations                        $   651   $(1,226)  $ 1,440   $   (974)
    Gain from sale of discontinued
     operations                            468        --       468         --
    Earnings from discontinued
     operations, net of income taxes        35       167        22        260
                                       --------  --------  --------  ---------
  Net income (loss)                    $ 1,154   $(1,059)  $ 1,930   $   (714)
                                       ========  ========  ========  =========

    Basic income (loss) per share:
      Net income (loss) from
       continuing operations
       attributable to common
       shareholders                    $  0.18   $ (0.35)  $  0.40   $  (0.28)
      Earnings from discontinued
       operations, net of income
       tax                                0.14      0.05      0.14       0.08
                                       --------  --------  --------  ---------
      Net income (loss) attributable
       to common shareholders          $  0.32   $ (0.30)  $  0.54   $  (0.20)
    Diluted income (loss) per share:
      Net income (loss) from
       continuing operations
       attributable to common
       shareholders                    $  0.18   $ (0.35)  $  0.40   $  (0.28)
      Earnings from discontinued
       operations, net of income
       tax                                0.14      0.05      0.14       0.08
                                       --------  --------  --------  ---------
      Net income (loss) attributable
       to common shareholders          $  0.32   $ (0.30)  $  0.54   $  (0.20)
    Shares used in per share
     calculation:
      Basic                              3,569     3,514     3,564      3,496
      Diluted                            3,578     3,514     3,570      3,496
    Non-cash stock-based compensation
     included in the above expenses:
      Cost of revenues                 $    14   $     6   $    25   $      8
      Sales and marketing                   12         7        20         10
      Research and development              20         5        37          9
      General and administrative            18         6        39         23
                                       --------  --------  --------  ---------
      Total                            $    64   $    24   $   121   $     50
                                       ========  ========  ========  =========