[0] Bluestone Software Poised for Continued Growth Boom; Executive Promotions Expand Managerial Depth and Breadth to Capitalize on Rapid Growth, Increasing Demand.

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--August 3, 2000

Bluestone(R) Software, Inc. (NASDAQ: BLSW), a leader in business-to-Web and wireless technologies, today announced promotions of several key Bluestone executives, as well as the building of a deeper management infrastructure. The moves position the company to take optimal advantage of its continuing rapid growth by establishing the organizational structure needed to increase operational control and depth.

At the helm, P. Kevin Kilroy has been appointed by Bluestone's board of directors to chairman of the board and retains his position as CEO. He succeeds Mel Baiada, founder and prior chairman of the company. Kilroy will continue to lead the company as its chief visionary.

The executive promotions include:

-- Andre Pino, who has been promoted from director of product management to
senior vice president of marketing.

-- Al Smith, who has been promoted from vice president of products to senior
vice president of engineering.

-- S. Craig Huke, who has been promoted to executive vice president

and retains his position as chief financial officer. He was

formerly senior vice president. Huke will continue to oversee the

administrative, financial and legal operations of the company.

-- Joseph K. Krivickas, who has been promoted to executive vice

president and chief operating officer. He was formerly senior

vice president, worldwide sales. Krivickas will oversee the

day-to-day operations of the company.

"Bluestone continues to grow rapidly as we deliver Bluestone's Total-e-Business(TM) platform and the robust, standards-based Internet Operating Environment(TM) it creates," said P. Kevin Kilroy, chairman and CEO of Bluestone Software. "We've hired 80 people since the beginning of the year, bringing us to a staff of 270. The executive group and internal promotions prepare us for sustained, aggressive growth by expanding the depth and breadth of our senior management team with seasoned Bluestone veterans. We refuse to let our growth distract us from our core competencies of listening closely to customer and market demands and responding with leading-edge Internet and wireless technologies."

To supplement its executive group, Bluestone has promoted several proven managers to senior management positions, reinforcing the company's organizational control and management capabilities. The promotions include:

-- Andre Pino, who has been promoted from director of product management to
senior vice president of marketing.

-- Al Smith, who has been promoted from vice president of products to senior
vice president of engineering.

-- Frank Naccarati, who has been promoted from vice president of

professional services to senior vice president of professional

services.

-- Andre Pino, who has been promoted from director of product management to
senior vice president of marketing.

-- Al Smith, who has been promoted from vice president of products to senior
vice president of engineering.

-- Tom Stiling, who has been promoted from vice president of sales

operations to senior vice president of Americas sales.

Concluded Kilroy, "By promoting from within, we've bolstered our management team with executives who helped to establish and continue to embody the Bluestone culture at the heart of our success and dramatic growth. Our focus and commitment to our customers have carried us to a leadership position in business-to-Web and wireless technologies. These organizational fortifications ensure that we maintain that position."

About Bluestone Software

Bluestone(R) Software, Inc., provider of Enterprise Interaction Management software, is a leader in business-to-Web and wireless technologies. Companies deploying e-business applications, like Avnet, CDNow, Food.com, MCI WorldCom, Planalytics, Reliance National, and Time Inc., rely on Bluestone's Total-e-Business(TM) platform to provide comprehensive e-business platforms, Internet-class infrastructures, and robust integration services that e-business success demands. Bluestone is headquartered at 300 Stevens Drive, Philadelphia, Pennsylvania, 19113-1597. For more information, please call 888-Bluestone or 610-915-5000, email [e-mail], or visit http://www.bluestone.com

Bluestone is a registered trademark, and Total-e-Business and Internet Operating Environment are trademarks of Bluestone Software, Inc. All other names, brands or products may be trademarks or registered trademarks of their respective owners.

Certain statements in this press release constitute forward-looking statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements involve known and unknown risks, uncertainties and other factors, including those contained in Bluestone's publicly filed reports with the Securities and Exchange Commission, which may cause Bluestone's actual results, performance, or achievements or those of its customers or its industry to be materially different from the future results, performance or achievements expressed or implied by these forward looking statements. Specifically, the Company's beliefs with respect to the business opportunities presented by e-business and the Company's ability to profitably market and deploy its product solutions may prove to be inaccurate. In light of the significant uncertainties inherent in these forward looking statements, the information in this press release should not be considered a representation by the Company or any other person that Bluestone's objectives and plans will be achieved.