51 New Customers Added Brings World-class Customer Base to 1,100

SUNNYVALE, Calif., October 16, 2002 - Interwoven, Inc. (Nasdaq: IWOV), a world-leader in Enterprise Content Management (ECM), today reported third quarter results, with revenues for the quarter ended September 30, 2002 of $30.0 million, a decrease of 31% from revenues of $43.8 million for the quarter ended September 30, 2001 and a 9% sequential decline from revenues of $33.0 million for the quarter ended June 30, 2002. License revenues represented 41% and service revenues were 59% of the total revenues for the quarter ended September 30, 2002. Interwoven signed 51 new license customers in the quarter ended September 30, 2002 bringing the total count to 1,100.

For the quarter ended September 30, 2002, pro forma net loss was $7.3 million, or $0.07 net loss per share on a basic and diluted basis, compared with a pro forma net loss of $3.7 million, or $0.04 net loss per share on a basic and diluted basis, for the quarter ended September 30, 2001. On a GAAP basis, net loss was $86.6 million, or $0.85 net loss per share on a basic and diluted basis for the quarter ended September 30, 2002, compared with net loss of $39.1 million, or $0.39 net loss per share on a basic and diluted basis, for the quarter ended September 30, 2001.

For the nine-months ended September 30, 2002, revenues were $95.7 million, a decrease of 40% from revenues of $160.1 million for the comparable period in 2001. Pro forma net loss, which excludes the effect of amortization of intangibles, stock-based compensation, restructuring costs, and a charge associated with goodwill impairment associated with past acquisitions, was $22.4 million, or $0.22 per share on a basic and diluted basis, for the nine months ended September 30, 2002, compared with a net loss of $769,000, or $0.01 loss per share on a basic and diluted basis, for the nine month period ended September 30, 2001.

The Company believes that the pro forma results better reflect its operating performance as they exclude the effects of non-cash charges associated with acquisitions and non-recurring operating expenses. Total expenses included in the GAAP results that were excluded from the pro forma results were $79.4 million and $35.4 million for the quarters ended September 30, 2002 and 2001, respectively and were $93.6 million and $101.1 million for the nine months ended September 30, 2002 and 2001, respectively.

"Despite the challenging IT spending environment, there has been a fundamental market shift to IT centralization, requiring the support of all content initiatives - both internal and external - and the management and sharing of all content enterprise-wide," said John Van Siclen, president and CEO of Interwoven. "Interwoven's award-winning, open, scalable, and proven platform for managing all content is tailor-made to address this mission critical need and validated by our 1,100 world-class customers."

Q3 Highlights
Interwoven signed 51 new license customers in the quarter ended September 30, 2002, bringing the licensed customer count to 1,100.

Key new global customers include: Allianz Life Insurance Company of North America, Altera, Ben (T-Mobile Netherlands), Bayerischer Rundfunk, Chiron Corporation, Federal Emergency Management Agency (FEMA), Futbol Club Barcelona, Halliburton, New York Mercantile Exchange, Nokia, NTT Advanced Technology, Sharp, Starhub, and University of New South Wales.

Interwoven also saw customer reorders which included: ABN Amro Bank, AT&T Wireless, British Telecommunications, BP, Cox Communications, DirecTV Broadband, E.I. du Pont, Farmers Group, Ford Credit, HSBC, John Hancock, Siemens AG, Samsung Electronics, Toyota Motor Sales, U.S.A., and Washington Mutual.

Industry Awards and Accolades
- Interwoven was ranked as a market leader in META Group's META spectrum for Web Content Management

- Interwoven was listed, once again, as a leader in Gartner's Web Content Management (WCM) Magic Quadrant report for 2002

- Interwoven was recognized for its ECM vision, broad range of technologies, strong partnerships, and stellar customer base by the Butler Group, Europe's leading independent IT Research and Advisory organization

Appointments
During Q3, John Van Siclen was promoted to CEO, Thor Culverhouse was appointed as senior vice president of sales and Frank Fanzilli, former CIO of Credit Suisse First Boston, joined the board of directors.

Interwoven, Inc. (Nasdaq: IWOV) a world-leading provider of Enterprise Content Management software. The Interwoven 5 platform provides complete content lifecycle services, including Content Processing, Content Management, Content Intelligence, Content Production and Content Distribution. Its products are the de facto standard for more than 1000 global companies including British Airways, Cisco Systems, General Electric, General Motors and Singapore Airlines. Interwoven teams with the leading best-of-breed enterprise application providers to provide customers complete, collaborative business enterprise solutions. Interwoven won Transform Magazine's "2001 Product of the Year" award for Enterprise Content and Collaboration Technology. For more information on Interwoven and its proven XML-based ECM solutions, visit the Interwoven Website at www.interwoven.com.tw.

Interwoven, TeamSite, MetaTagger, OpenDeploy, the taglines, logo and service marks are trademarks of Interwoven, Inc., which may be registered in certain jurisdictions. All other trademarks are owned by their respective owners. Copyright 1996-2002 Interwoven, Inc. All rights reserved.

This press release contains "forward-looking" statements, including statements about new customers and new products that may suggest trends for our business. These statements are based on information available to us at the time of the release; we assume no obligation to update any of them. Statements in this release are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including: customer spending on web initiatives may be reduced during the current economic downturn, which may be longer than anticipated; the market for our products is relatively new and customer acceptance of our products is not proven; our dependence on large customer orders makes our results potentially volatile; and our international expansion poses special difficulties and creates extra expenses. 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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