UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 5
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
[ ] Check box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue.
[ ] Form 3 Holdings Reported
[ ] Form 4 Transactions Reported
1. Name and Address of Reporting Person(s)
Thatcher, Keith D.
6300 Bridgepoint Parkway
Building Three, Suite 200
Austin, TX 78730
2. Issuer Name and Ticker or Trading Symbol
PSW Technologies, Inc. (PSWT)
3. I.R.S. Identification Number of Reporting Person, if an entity (Voluntary)
4. Statement for Month/Year
12/99
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
[ ] Director [ ] 10% Owner
[X] Officer (give title below) [ ] Other (specify below)
VP, Chief Financial Officer
7. Individual or Joint/Group Filing (Check Applicable Line)
[X] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
Table I Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
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1)Title of Security 2)Trans- 3.Trans- 4.Securities Acquired(A) 5)Amount of 6) 7)Nature of
action action or Disposed of (D) Securities Indirect
Date Code A Beneficially D Beneficial
(Month/ or Owned at or Ownership
Day/Year) Code Amount D Price End of Year I
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<S> <C> <C> <C> <C><C> <C> <C><C>
Common Stock 04/30/99 J 500 A $2.1781 D Direct
Common Stock 10/31/99 J 470 A $3.1875 6,070 D Direct
Common Stock 1,900 I by Spouse
<CAPTION>
Table II (PART 1) Derivative Securitites Acquired, Disposed of, or Beneficially Owned (Columns 1 through 6)
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1)Title of Derivative 2)Conversion 3)Trans- 4)Trans- 5)Number of Derivative 6)Date Exercisable and
Security or Exercise action action Securities Acquired (A) Expiration Date
Price of Date Code or Disposed of (D)
Derivative
Security Code A D Exercisable Expiration
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Non-Qualified Stock Option $1.9375 (1) 09/29/08
(right to buy)
Non-Qualified Stock Option $2.5800 (2) 09/27/06
(right to buy)
Non-Qualified Stock Option $3.8750 (3) 02/09/09
(right to buy)
<CAPTION>
Table II (PART 2) Derivative Securitites Acquired, Disposed of, or Beneficially Owned (Columns 1,3 and 7 through 11)
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1)Title of Derivative 3)Trans- 7)Title and Amount 8)Price 9)Number of 10) 11)Nature of
Security action of Underlying of Deri- Derivative Indirect
Date Securities vative Securities D Beneficial
Amount or Security Beneficially or Ownership
Number of Owned at I
- Title Shares End of Year
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Non-Qualified Stock Option Common Stock 52,000 52,000 D Direct
(right to buy)
Non-Qualified Stock Option Common Stock 7,385 7,385 D Direct
(right to buy)
Non-Qualified Stock Option Common Stock 11,139 11,139 D Direct
(right to buy)
<FN>
Explanation of Responses:
- -
(1) Cancellation of options in connection with grant of replacement options on September 29,1998. The reported transaction
involved the repricing of existing options and a new vesting schedule. 12,000 shares are currently exercisable.4,000 options
become exercisable on September 29, 2005. The remaining 36,000 options become exercisable in three(3) equal annual installments
commencing on September 29, 2000.
(2) 5538 shares are currently exercisable. The remaining 1847 options become exercisable on July 15, 2000.
(3) Options become exercisable in four (4) equal annual installments commencing on February 9, 2000.
</FN>
</TABLE>
SIGNATURE OF REPORTING PERSON
/S/ Thatcher, Keith D.
DATE 02/14/00
