SUNNYVALE, Calif., October 18, 2001 - Interwoven, Inc. (Nasdaq: IWOV), the leading provider of Content Infrastructure, today reported third quarter results, with revenues for the quarter ended September 30, 2001 of $43.2 million, an increase of 10% over revenues of $39.4 million for the quarter ended September 30, 2000 and a 21% sequential decline from revenues of $55.0 million for the quarter ended June 30, 2001. License revenues represented 48% and service revenues were 52% of the total revenues for the quarter ended September 30, 2001. Interwoven signed 59 new license customers in the quarter ended September 30, 2001 bringing the total count to more than 850.

Pro forma net loss, 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 $4.3 million, or $0.04 per share on a basic and diluted basis, compared with a net income of $548,000, or $0.01 income per share on a basic and diluted basis, for the quarter ended September 30, 2000.

"I'm very pleased with these results in a very tough economic environment," said Martin Brauns, president and CEO of Interwoven. "Our laser focus on customer satisfaction, innovation and technology leadership continues to attract the world's leading firms to choose Interwoven's Content Infrastructure. I remain optimistic about the business going forward and I am happy to see us continue to penetrate new markets throughout the world."

Interwoven signed 59 new license customers in the quarter ended September 30, 2001 bringing the customer count to more than 850. Interwoven's customer list now includes 42 of the Fortune 100. New customers included American Stock Exchange L.L.C., Blue Cross Blue Shield of Michigan, Citgo Petroleum Corporation, Commonwealth of Massachusetts, Environmental Protection Agency, IBM, Idaho Power, Motorola, Seagate Removable Storage Solutions, Sun Chemical, U.S. Patent and Trademark Office, Willamette Industries and WYETH Pharmaceuticals.

Interwoven also saw significant reorders from many of its larger customers including American Airlines, Best Buy, Cisco, Citibank, Network Associates, Siemens and Sun Microsystems.

20 new international customers were added in the quarter ended September 30, 2001, including Airbus, Ajinomoto System Techno, British Telecom (UK), Friends Provident Management, Western Australia Department of Justice, Defense & Science Technology Agency of Singapore, Infotech, Korea Chamber of Commerce & Industry, Medical Benefit Fund (Dimension Data Australia Pty Ltd), Visa Singapore, Vivendi CGEA and Wipro Technologies.

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 more than 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 Interwoven and its proven XML-based content infrastructure solutions, visit the Interwoven Website 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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