Lenovo LJ5700 and LJ7600 Printers Ship With Peerless’ Imaging Technology

EL SEGUNDO, CA -- 01/12/2005 -- Peerless Systems Corporation (NASDAQ: PRLS), a provider of imaging and networking controllers to the digital document markets, announced the incorporation of Peerless’ core imaging technology in two Lenovo monochrome laser printers, the LJ5700 and LJ7600. Both products were developed using Peerless’ software development kits (SDKs), under the company’s Partner-to-Develop™ program, and are shipping in the commercial market in the People’s Republic of China.

The new Lenovo LJ5700 is a 20 page per minute printer while the LJ7600 is a 30 page per minute printer. Lenovo licensed a variety of Peerless imaging technologies including PeerlessPrint® PCL emulation, PeerlessPage™, and PeerlessDriver™ for use across a family of products.

The scalability of Peerless imaging technologies enables Lenovo to leverage a single board and architecture across a family of products -- reducing time to market and increasing the efficiency of development resources. In addition to the SDKs used in the development, both the LJ5700 and the LJ7600 incorporate the Peerless QuickPrint® QP+405 ASIC, a “system on a chip” solution that integrates a powerful processor and co-processor on a single chip. The QP+405 delivers the processor power and co-processor functionality in a cost-effective package with excellent performance characteristics that enable Lenovo to address the market for low-cost office, mid-range monochrome or color printers and MFPs.

“Lenovo is rapidly expanding and building on our success to deliver leading imaging solutions to businesses throughout China,” said Mr. Liu Hong, assistant president of Lenovo Group and general manager of Lenovo’s Peripheral Equipment Business Division. “Peerless and its Partner-to-Develop program are fundamental to accomplishing this goal.”

“Our Partner-to-Develop program, which included development support, technical training and software development kits (SDKs) licensing, allowed Lenovo to have complete control over the development process in a very collaborative environment, and they leveraged this development across a family of products, resulting in both the LJ5700 and the LJ7600,” said Steve Robinson, vice president of marketing, Peerless. “By maximizing Lenovo’s development resources, Peerless helps strengthen Lenovo’s imaging prominence in the PRC commercial market.”

Peerless imaging technologies are licensed to OEMs, like Lenovo, to develop unique product features customized to their customers’ needs. Over the last 12 months, printer and copier OEMs have incorporated Peerless’ technology in approximately 1 million units shipping worldwide. Peerless’ Partner-to-Develop program gives OEMs greater access to unique technologies and complete control over the development process, so they can maximize market opportunities. For OEM customers who want to learn more about the Peerless family of imaging and networking products, please contact info@peerless.com.

About Lenovo

Lenovo Group Limited (formerly named “Legend Group Limited”) (0992.hk) is the largest IT corporation in the PRC. Its own brand PC has been the country’s best seller since 1997 and had a market share of about 27.0% in 2003, according to International Data Corporation. Lenovo is also the number one PC brand in the Asia Pacific market (excluding Japan), with a market share of 12.6% in 2003.

Lenovo’s business performance has proved that the group has deep insight into the PRC IT market and clear grasp of user needs. The major shareholder of Lenovo is the Chinese Academy of Sciences, providing Lenovo with strong technological support and broad connection in the PRC. Lenovo has also built up strategic alliances with international technology giants such as Intel and Microsoft. The Group engaged in manufacture and sales of desktop PCs, notebook computers, mobile handsets, servers and peripherals, etc. Lenovo was listed on the Hong Kong Stock Exchange in 1994 and is a constituent stock of the Hang Seng Index. Its American Depositary Receipts (OTC: LNVGY) are also being traded in the United States. For more information on Lenovo, please refer to our Web site -- www.lenovo.com.

About Peerless Systems Corporation

Founded in 1982, Peerless Systems Corporation is a provider of imaging and networking controllers 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 enable 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, Lenovo, OkiData, Ricoh, RISO, Seiko Epson and Xerox. Peerless also maintains strategic partnerships with Adobe and Novell. For more information, visit the Company’s Web site at www.peerless.com.

Editor’s Note: Peerless, PeerlessPrint and QuickPrint are registered trademarks of Peerless Systems Corporation. PeerlessDriver, PeerlessPage and Partner-to-Develop are trademarks of Peerless Systems Corporation. All other trademarks are the property of their respective owners. This news release refers to various products and companies by their trade names which designations are claimed as trademarks or registered trademarks by their respective companies.

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

This Release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The use of forward-looking statements in connection with or related to any discussion of or reference to future operations, opportunities or financial performance sets apart forward-looking statements. In particular, statements regarding the Company’s outlook for future business, financial performance and growth, profitability, product availability and potential applications and successes and the impact on future performance of organizational and operational changes all constitute forward-looking statements.

These forward-looking statements are just predictions and best estimations consistent with the information available to the Company at this time. Thus they involve known and unknown risks and uncertainties such that actual results could differ materially from those projected in the forward-looking statements made in this Release. Risks and uncertainties include those set forth in Peerless’ public filings with the Securities and Exchange Commission, including but not limited to the Company’s most recent Annual Report on Form 10-K dated January 31, 2004, in the Section called Certain Factors And Trends Affecting Peerless And Its Business at pages 16 through 23, inclusive, filed on April 30, 2004, and the Company’s most recent Quarterly Report on Form 10-Q dated October 31, 2004 in the Section called Certain Factors and Trends Affecting Peerless and Its Business at pages 21 through 29, inclusive, filed on December 15, 2004.

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