Exhibit 99.1

FOR IMMEDIATE RELEASE May 12, 2003

Group 1 Software Reports Fourth Quarter and Fiscal Year Results

Fiscal Year Revenue Increases 17% and Net Income Up 98% Over Prior Year;
Fourth Quarter Revenue up 21%; 71% Increase in Net Income

Lanham, MD — Group 1 Software (Nasdaq: GSOF) today reported results for its fourth fiscal quarter and fiscal year ended March 31, 2003. The Company reported record fourth quarter revenue of $29.2 million, up 21% vs. the prior year’s fourth quarter. Net income available to common stockholders increased 72% to $3.5 million, up from $2.0 million for the prior year’s fourth quarter. Fully diluted earnings per share for the quarter increased to $0.22 per share from $0.14 per share the prior year.

For the entire 2003 fiscal year, the Company reported record revenue of $104.3 million, a 17% increase from $89.4 million the prior year. Net income available to common stockholders was $8.7 million, an increase of 99% from $4.4 million reported for the prior year. Fully diluted earnings per share were $0.59 as compared with $0.32 in the prior year, an 84% increase. All earnings per share data have been adjusted for the two-for-one split in the Company’s common stock for shareholders of record as of November 15, 2002.

Total revenue for the quarter from Enterprise Solutions software and services was $19.8 million, a 19% increase over the prior year’s fourth quarter. Total revenue from DOC1 Customer Communications Management software and services was $9.4 million, a 26% increase over the prior year’s fourth quarter.

Fourth quarter license fee revenue for the Company increased 53% to $14.7 million vs. the prior year. License fees in the Enterprise Solutions division were up 46% to $10.3 million. License fees in the DOC1 division increased 70% to $4.4 million.

Group 1’s cash position grew even stronger in the quarter. Cash and short-term investments totaled $64.2 million at March 31, 2003 compared with $55.3 million at December 31, 2002 and $47.6 million at March 31, 2002.

“We are obviously pleased with the very strong results we saw for the quarter and full year in both of our operating segments, especially in light of the depressed IT spending environment,” said Group 1’s CEO, Bob Bowen. “Our traditional and new products all contributed to our growth both in the fourth quarter and over the full year.”

“We’ve entered the new fiscal year having announced our intent to acquire the key assets of Sagent Technology, Inc.,” continued Bowen. “We are very enthusiastic about this acquisition, as it will enable us to provide an even more comprehensive array of data quality and data enrichment technologies to the marketplace, and, as well, add the ability to integrate enterprise information from multiple databases. The transaction will also bring us a number of highly talented people, increase our customer base substantially, and expand our global distribution channels.”

At a recent meeting, Group 1’s Board of Directors approved the acquisition. Closing is subject to approval by Sagent’s shareholders.

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“Excluding the potential impact of the pending Sagent acquisition, our guidance for the fiscal year ending March 31, 2004 remains unchanged,” said Group 1’s CFO, Mark Funston. “The Company projects revenue growth in the range of 10% to 12% over fiscal 2003 and net earnings growth in the range of 24% to 28%. Additionally, we project that Sagent acquisition will contribute approximately $30 million in revenue the first year and will be accretive within twelve months following the completion of the transaction.”

The Company will hold a conference call at 8:30 AM EST today to discuss these results. Interested parties are invited to listen to the call, which will be broadcast via the Internet at www.g1.com or by dialing 800-374-0565.

Group 1 Software (Nasdaq: GSOF) is a leading provider of software solutions for data quality, marketing automation, customer communications management and direct marketing applications. Group 1’s software systems and services enable over 2,000 customers worldwide to market smarter by helping them find, reach and keep customers. Founded in 1982 and headquartered in Lanham, Maryland, Group 1’s solutions are utilized by leaders in the financial services, banking, retail, telecommunications, utilities, e-commerce, and insurance industries. The company’s customer base includes such recognized names as Charles Schwab, Entergy, GEICO, L.L. Bean, Wal-Mart and Wells Fargo. For more information about Group 1, visit the company’s Web site at http://www.g1.com.

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation reform Act of 1995. Words like “are enthusiastic”, “announced our intent”, “guidance” and “projects” are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Readers are cautioned not to place undue reliance of these forward-looking statements, which address the conditions as they are found on the date of this press release. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances that arise after the date of this press release or to reflect the occurrence of unanticipated events. For additional information regarding these and other risks and uncertainties associated with the Company’s business, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission. Group 1 Software and DOC1 are registered trademarks of Group 1 Software, Inc.

Contacts

Mark Funston, CFO, Group 1 Software at 301.918.0381 or mark_funston@g1.com

David Peikin, Corporate Communications Manager, Group 1 Software at 301.918.0818 or pr@g1.com

Charles Messman, MKR Group at 626-395-9500 or cmessman@mkr-group.com

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GROUP1 SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Adjusted to reflect the 2 for 1 stock split approved by the Board of Directors on November 5, 2002)
(In thousands, except per share data)
(Unaudited)

	For the Three Month Period Ended March 31,						For the Twelve Month Period Ended March 31,
	2003			2002			2003			2002
Revenue:
Software license and related revenue	$	14,749		$	9,666		$	48,480		$	32,996
Maintenance and services		14,414			14,448			55,772			56,432
Total revenue		29,163			24,114			104,252			89,428
Cost of revenue:
Software license expense		4,080			3,747			15,293			12,051
Maintenance and service expense		4,413			4,516			17,094			20,802
Total cost of revenue		8,493			8,263			32,387			32,853
Gross profit		20,670			15,851			71,865			56,575
Operating expenses:
Research and development		3,214			2,537			11,800			10,345
Sales and marketing		9,235			6,912			32,947			28,845
General and administrative		3,758			3,107			14,626			11,255
Total operating expenses		16,207			12,556			59,373			50,445
Income from operations		4,463			3,295			12,492			6,130
Non-operating income
Interest income		278			289			1,157			1,589
Interest expense		(12	)		(118	)		(301	)		(372	)
Other non-operating income (expense)		236			—			14			(69	)
Total non-operating income		502			171			870			1,148
Income before provision for income taxes		4,965			3,466			13,362			7,278
Provision for income taxes		1,490			1,433			4,602			2,852
Net income		3,475			2,033			8,760			4,426
Preferred stock dividend requirements		(2	)		(14	)		(44	)		(56	)
Net income available to common stockholders	$	3,473		$	2,019		$	8,716		$	4,370
Basic earnings per share	$	0.26		$	0.16		$	0.67		$	0.35
Diluted earnings per share	$	0.22		$	0.14		$	0.59		$	0.32
Basic weighted average shares outstanding		13,543			12,552			13,029			12,474
Diluted weighted average shares outstanding		15,586			14,028			14,734			13,798

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GROUP1 SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)

	March 31, 2003			March 31, 2002
ASSETS
Current assets:
Cash and cash equivalents	$	56,475		$	22,936
Short-term investments, available-for-sale		7,712			24,669
Trade and installment accounts receivable, less allowance of $1,755 and $2,058		18,834			17,551
Deferred income taxes		2,130			1,718
Prepaid expenses and other current assets		4,067			3,219
Total current assets		89,218			70,093
Installment accounts receivable, long-term		39			263
Property and equipment, net		4,707			5,797
Computer software, net		23,490			22,873
Goodwill		12,716			12,686
Other assets		206			167
Total assets	$	130,376		$	111,879
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,358		$	1,198
Current portion of note payable and capital lease obligation		371			3,496
Accrued expenses		7,033			5,857
Accrued compensation		9,454			3,732
Current deferred revenues		31,241			28,833
Total current liabilities		49,457			43,116
Notes payable, net of current portion		350			3,630
Deferred revenues, long-term		315			197
Deferred income taxes		4,694			4,534
Total liabilities		54,816			51,477
Commitments and contingencies		—			—
Stockholders’ equity: 6% cumulative convertible preferred stock $0.25 par value; 1,200 shares authorized; 0 and 48 shares issued (aggregate involuntary liquidation preference $950)		—			916
Common stock $0.50 par value; 50,000 shares authorized; 14,902 and 13,836 shares issued		7,451			6,918
Additional paid in capital		34,951			29,620
Retained earnings		37,619			28,903
Accumulated other comprehensive income (loss)		184			(1,368	)
Less treasury stock, 1,246 and 1,240 shares, at cost		(4,645	)		(4,587	)
Total stockholders’ equity		75,560			60,402
Total liabilities and stockholders’ equity	$	130,376		$	111,879

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