Joint Customers to Benefit from a Streamlined Process that Brings Increased Information Quality and Accuracy to Leading B2B Marketplaces

FAIRFAX, VA and SUNNYVALE, Calif., August 16, 2000 - webMethods, Inc. (Nasdaq: WEBM), the leading provider of business-to-business integration (B2Bi) solutions, and Interwoven, Inc. (Nasdaq: IWOV), the leading provider of enterprise-class content management solutions, today announced a strategic alliance to provide a full B2B lifecycle solution for Fortune 1000 customers who are creating and participating in B2B marketplaces and exchanges. By integrating the functionality of Interwoven's enterprise-class content management solutions with webMethods' award-winning products, webMethods Enterprise and webMethods B2B, the two companies will provide a streamlined process to bring new levels of information quality and accuracy to leading B2B marketplaces.

"To conduct successful business transactions across B2B trading networks, companies must first ensure that high quality, accurate content is prepared in a timely fashion," said Phillip Merrick, president and CEO of webMethods, Inc. "Interwoven's proven content management technology, and their newly announced B2B Content Interchange Framework, will ensure that our mutual customers can improve the success of their B2B e-commerce initiatives by preparing targeted, relevant content that is ready to be integrated into the online transaction environment."

webMethods provides Global 2000 organizations with the first and only end-to-end B2Bi solution suite that rapidly integrates business applications within the enterprise and extends business functionality and processes out across corporate boundaries to customers, partners and suppliers. Initially, Interwoven's content management solutions will be integrated with webMethods Enterprise (formerly the ActiveWorks Integration System, which was attained through webMethods' recent acquisition of Active Software) to enable the retrieval of legacy data and content into Interwoven's XML-based TeamSite Templating.

With XML based TeamSite Templating, users can prepare and exchange marketplace-ready data using a variety of XML industry standards including cXML and xCBL. By leveraging this properly formatted content and the open architecture of webMethods B2B, companies will benefit from fast and efficient external business integration between customers, partners and suppliers. The combination of Interwoven content management technology and webMethods B2Bi solutions provides increased automation in content preparation and enhanced quality control through approval workflow.

"Our blue-chip customers, both those transforming their sites into private exchanges and those participating in marketplaces, will benefit greatly from the strength of the combined Interwoven/webMethods full life cycle B2B solution," said Martin Brauns, president and CEO of Interwoven. "Interwoven is dedicated to providing its customers solutions which meet their end-to-end needs for building effective B2B sites, and our alliance with webMethods will be a key component of our strategy moving forward."

The webMethods/Interwoven solution is targeted to be available in the fourth quarter of 2000..

(See separate announcements detailing Interwoven's New B2B Division and its Content Interchange framework ).

webMethods, Inc. (Nasdaq: WEBM) is the leading provider of software solutions for business-to-business integration (B2Bi). As the only company providing seamless B2Bi across the firewall and throughout the extended enterprise, webMethods provides Global 2000 companies and B2B marketplaces with a complete, end-to-end solution for integrating customers, suppliers and partners into real-time B2B trading networks, while also increasing internal operational efficiencies. The webMethods product family allows companies to create new revenue opportunities, strengthen relationships with customers, substantially reduce supply chain inefficiencies and streamline internal business processes.

Founded in 1996, webMethods is based in Fairfax, Va., with offices across the U.S., Europe and Asia. With an emphasis on key vertical markets such as chemicals, financial services, high-tech manufacturing and telecommunications, webMethods has more than 425 customers worldwide--from Global 2000 leaders such as Citibank, Dell, Eastman Chemical Company, Fidelity Investments, Grainger, Motorola, Teligent and Starbucks to major B2B marketplaces like ChemConnect, e-STEEL and Ventro. webMethods' strategic partners include Ariba, Commerce One, Deloitte Consulting, EDS, i2 Technologies, KPMG, Microsoft, Oracle Corp., SAP AG and Vantive. More information about the company can be found at www.webMethods.com.

Interwoven, Inc. (Nasdaq: IWOV) is the leading provider of enterprise-class content management solutions. Its flagship product, TeamSite, controls the development, management and deployment of business-critical Web sites. Interwoven solutions are based on an inclusive content architecture that empowers all content contributors and leverages diverse Web assets including XML, Java, rich html, multimedia and database content. TeamSite is available for the Sun Solaris operating system and Microsoft NT and Windows 2000 platforms. For more information on the company and its software solutions, visit the Interwoven Web site at www.interwoven.com.tw or e-mail info@interwoven.com