-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 LU5QKWpjf9d5Z73gZDpTq1+Tu/qhNdkHO2jUZJyER3PnZXachsBdPs/1IwKJOqeB
 HWjEQHzlFDmiz6dti85Fdg==

<SEC-DOCUMENT>0000919574-04-002997.txt : 20041110
<SEC-HEADER>0000919574-04-002997.hdr.sgml : 20041110
<ACCEPTANCE-DATETIME>20041109184720
ACCESSION NUMBER:		0000919574-04-002997
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20041105
FILED AS OF DATE:		20041109
DATE AS OF CHANGE:		20041109

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			NEEDHAM GEORGE A
		CENTRAL INDEX KEY:			0001215611

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25857
		FILM NUMBER:		041131042

	MAIL ADDRESS:	
		STREET 1:		445 PARK AVE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PERSISTENCE SOFTWARE INC
		CENTRAL INDEX KEY:			0001084400
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				943138935
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1720 SOUTH AMPHLETT BLVD., 3RD FLOOR
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94402
		BUSINESS PHONE:		6503417733

	MAIL ADDRESS:	
		STREET 1:		1720 S. AMPHLETT BLVD, 3RD FLOOR
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94402
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>p524556_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-11-05</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0001084400</issuerCik>
        <issuerName>PERSISTENCE SOFTWARE INC</issuerName>
        <issuerTradingSymbol>PRSW</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001215611</rptOwnerCik>
            <rptOwnerName>NEEDHAM GEORGE A</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>445 PARK AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2004-11-05</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F4"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>15156</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>5.70</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Footnote 1</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrant (Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>7.50</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-11-05</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F2"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>4816</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2007-11-26</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>4816</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Footnote 3</value>
                    <footnoteId id="F3"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">This amount includes the pecuniary interest of George A. Needham for shares which are beneficially owned by Needham Capital
Partners III, L.P., Needham Capital Partners IIIA, L.P., Needham Capital Partners III (Bermuda), L.P., Needham Contrarian
Fund, L.P. and Needham Contrarian QP Fund, L.P., which Mr. Needham may be deemed to have a pecuniary interest by virtue of
his position as Manager of Needham Capital Management, L.L.C. (the general partner of Needham Capital Partners III, L.P. and
Needham Capital Partners IIIA, L.P.), Manager of Needham Capital Management (Bermuda) L.L.C. (the general partner of Needham
Capital Partners III (Bermuda), L.P.) and Managing General Partner of Needham Management Partners, L.P. (the general partner
of Needham Contrarian Fund, L.P. and Needham Contrarian QP Fund, L.P.).</footnote>
        <footnote id="F2">These warrants were immediately exercisable and expired unexercised.</footnote>
        <footnote id="F3">This amount included warrants to purchase shares which are beneficially owned by Needham Capital Partners III, L.P., Needham
Capital Partners IIIA, L.P. and Needham Capital Partners III (Bermuda), L.P., which Mr. Needham may be deemed to have a
pecuniary interest by virtue of his position as Manager of Needham Capital Management, L.L.C. and Manager of Needham Capital
Management (Bermuda) L.L.C.</footnote>
        <footnote id="F4">All the shares of the Issuer were purchased by Progress Software Corporation on November 5, 2004, pursuant to an all-cash
transaction for a purchase price of $5.70 per share.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By: /s/ George A. Needham</signatureName>
        <signatureDate>2004-11-09</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----