SUNNYVALE, Calif., July 17, 2001 - Interwoven, Inc. (Nasdaq: IWOV), the leading provider of Content Infrastructure, today reported second quarter results, with revenues for the quarter ended June 30, 2001 of $55.0 million, an increase of 127% over revenues of $24.3 million for the quarter ended June 30, 2000 and a 9% sequential decline from revenues of $60.5 million for the quarter ended March 31, 2001. License revenues represented 56% and service revenues were 44% of the total revenues for the quarter ended June 30, 2001. Interwoven signed 50 new license customers in the quarter ended June 30, 2001 bringing the total count to over 790.

Pro forma net income, which excludes the effect of non-cash charges related to stock-based compensation, acquisition-related expenses and a special charge related to facilities relocation, was $552,000, or $0.01 per share on a basic and diluted basis, compared with a net loss of $755,000, or $0.01 loss per share on a basic and diluted basis, for the quarter ended June 30, 2000.

"We had a good second quarter, beating expectations, despite some strong economic headwind," said Martin Brauns, president and CEO of Interwoven. "With the introduction of the Content Infrastructure product suite, the rollout of eight new products in Q2, the support of all the leading eBusiness application providers and a recognized strong management team, Interwoven is positioned to continue its market leadership."

Interwoven signed 50 new license customers in the quarter ended June 30, 2001. New customers included Aventis Pharmaceuticals, Borland Software, Farm Credit Canada, Franchise Tax Board, McLeodUSA, Oakland County (MI), PeopleSoft, Qualcomm CDMA, Rogers Communications, Sun Trust Banks, Synopsys, Toronto-Dominion Bank, Toshiba America Business Solutions, University of Pennsylvania Health System and William M. Mercer. With these additions, Interwoven's total customer count is now over 790. The Interwoven customer list includes 43 of the Fortune 100.

Interwoven also saw significant reorders from many of its larger customers including AT&T Broadband, Credit Suisse First Boston, Deere & Company, Philip Morris, Toyota and US Bancorp.

17 new international customers were added in the quarter ended June 30, 2001, including Boral, France Telecom Multimedia Services (Wanadoo), Fuji Xerox, Hutchison Telecom, Louis Vuitton Moet Hennessy, New South Wales Department of Fair Trading, Swedish Postal Service, Telecom Italia and T-Motion plc.

Alliance and product highlights during Q2 2001

-- Interwoven announced Content Infrastructure, which not only includes products for content management but also content aggregation, content collaboration, content intelligence and content distribution.

-- Interwoven's new products include TeamSite 5.0, TeamSite Templating 5.0, OpenDeploy 5.0, MetaTagger 2.1, OpenChannel, TeamXML, OpenSyndicate software and the PortalReady Software Development Kit.

-- Interwoven announced the PortalReady Partner Program which includes partners such as BEA, Bowstreet, Corporate Yahoo!, DataChannel, Epicentric, IBM, PeopleSoft, Plumtree, Sun/iPlanet, Sybase and TIBCO.

-- -- Interwoven announced John Van Siclen as Chief Operating Officer; Frank Florence as Senior Vice President of Business Development and Anurag Srivastava as Vice President of Asia Pacific.

Interwoven, Inc. (Nasdaq: IWOV) is the world's leading provider of Content Infrastructure software. Its content infrastructure product suite includes content aggregation, content collaboration, content management, content intelligence and content distribution. Its products are the de facto standard for over 700 Global 2000 companies including British Airways, Cisco Systems, General Electric, General Motors and Philips. Interwoven teams with the leading best-of-breed eBusiness application providers to provide customers an end-to-end platform for eBusiness. For more information on one of the fastest growing software companies in Silicon Valley and its proven XML-based solutions, visit the Interwoven Web site at www.interwoven.com.tw .

This press release contains "forward-looking" statements, including projections about our business growth. For example, statements in the future tense, and statements including words such as "expect," " plan", "estimate," "anticipate" or "believe," are forward-looking statements. These statements are based on information available to us at the time of the release; we assume no obligation to update any of them. The statements in this release are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of numerous factors, including the fact that our market is new and customer acceptance of our products is not proven, our growing dependence on large customer orders, special difficulties associated with international expansion, the extent to which we incur stock based compensation charges and potential unexpected difficulties with integration of recent acquisitions. These and other risks and uncertainties associated with our business are described in our most recent annual report on Form 10-K and subsequent Forms 10-Q and 8-K, which are on file with the SEC and available through www.sec.gov .

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