October 1, 2004

Dear PeopleSoft Customer,

Today, the PeopleSoft Board of Directors announced a series of management changes.  Dave Duffield was appointed as Chief Executive Officer and Kevin Parker and Phil Wilmington as Co-Presidents.  In addition, Aneel Bhusri will assume the role of Vice Chairman.  We want to update you on these changes and what they mean for our customers.

Dave Duffield, in addition to his CEO role, will continue as PeopleSoft's Chairman of the Board.  Kevin Parker will be responsible for internal operations and remain Chief Financial Officer, and Phil Wilmington, currently Executive Vice President of the Americas, will assume responsibility for worldwide field operations.  Aneel Bhusri, currently a director on PeopleSoft's Board, will focus on the company's product and technology strategy as Vice Chairman.

What do these changes mean for our customers?  We will continue to focus on innovation, market leadership, and our relentless commitment to customer satisfaction.  We will continue to drive quality initiatives that have already delivered significant benefit to customers through our Total Ownership Experience initiative.  And we will reaffirm PeopleSoft as a company that is great to do business with.  We pledge this on behalf of PeopleSoft's management team and all of our employees. worldwide.

We are also excited about our third quarter performance.  Based on our preliminary results, license revenues are expected to be in excess of $150 million.  Our performance demonstrates PeopleSoft's continuing competitive strength and ability to execute.  These strong results could not have been possible without the support of customers worldwide.

Thank you for your continued confidence in PeopleSoft.  We are more committed than ever to your success.

Sincerely,