Interwoven Receives NASDAQ Notice of Non-Compliance

SUNNYVALE, Calif. - May 18, 2007 - Interwoven, Inc. (NASDAQ: IWOV), a global leader in content management solutions, today announced that it has received an additional notice of non-compliance from the staff of the NASDAQ Stock Market, pursuant to NASDAQ Marketplace Rule 4310(c)(14), due to the delay in filing its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007. Timely filing of periodic reports is a requirement for continued listing under NASDAQ Marketplace Rule 4310(c)(14).

As previously announced, Interwoven received a notice of non-compliance from NASDAQ on March 20, 2007 as a result of the delayed filing of Interwoven's Annual Report on Form 10-K for the year ended December 31, 2006. In response to this notice, Interwoven requested a hearing before a NASDAQ Listing Qualifications Panel, which occurred on May 3, 2007. At the hearing, Interwoven presented its plan to regain compliance with NASDAQ's filing requirements. Interwoven is currently awaiting a response from the Panel.

The late filings resulted from Interwoven's previously announced voluntary review of the company's historical stock option grant procedures. Interwoven initiated the review, which is being conducted under the supervision of the Audit Committee of the Board of Directors with the assistance of independent counsel. At this time, the Audit Committee has neither completed its review, nor reached any preliminary or final conclusions about the company's stock option practices and the related accounting treatment, if any. Until the Audit Committee's review is complete, Interwoven will be unable to file its periodic reports as required by the NASDAQ Stock Market. Interwoven intends to file its Annual Report on Form 10-K and Quarterly Report on Form 10-Q as soon as practicable after the completion of the review.

About Interwoven