AMS, SilverStream Announce Multi-Million Dollar Partnership Agreement; SilverStream Products to be Used for Upcoming AMS Development Efforts.

Business/Technology Editors

BURLINGTON, Mass.--(BUSINESS WIRE)--Jan. 20, 2000

SilverStream Software, Inc. (NASDAQ:SSSW), today announced that it has entered into a long-term, multi-million dollar corporate partnership with American Management Systems' Federal Defense Group (NASDAQ:AMSY) to supply software and support services for the development of a variety of AMS Web-enabled products.

AMS, a premier enterprise integrator for the Defense Department, currently develops several paperless acquisition applications such as Acquiline and Procurement Desktop - Defense (PD2), as well as workflow systems such as EMAAR/ENBOSS for the Army. Applications such as these can benefit from the extensive Web functionality provided by the SilverStream Application Server and other SilverStream products. Adding Web-based capabilities to these important AMS products will help reduce the number of onsite visits for deployment projects, increase sharing of enterprise-wide data without requiring database replication, and enhance communication between disparate data sources using standards such as XML, EDI and others.

&uot;We chose SilverStream because its advanced J2EE-based development and deployment environment enables us to seamlessly integrate the system with our existing environment,&uot; said Al Rogers, vice president of AMS' Federal Defense Group. &uot;The SilverStream application server's platform independence enables us to use multiple server platforms, and its XML integration will communicate with legacy systems still in use.&uot;

Robust security was also an important consideration for AMS in its selection of SilverStream Software. SilverStream's ability to deploy both HTML and Java clients at the desktop without use of JavaScript, ActiveX, or Applets was a critical feature, as was support for encryption and digital certificates (PKI).

Under the terms of SilverStream's agreement with AMS, AMS is expected to make periodic payments to SilverStream over the next 12 months.

About AMS

AMS is a world-class international business and information technology consulting firm. As one of the 20 largest consulting firms worldwide, AMS provides a full range of services and solutions: eCommerce, customer value management, business re-engineering, change management, knowledge management, systems integration, and systems development and implementation. Founded in 1970, AMS is headquartered in Fairfax, Virginia, with over 8,000 employees and 57 offices worldwide. AMS had 1998 revenues of $1.06 billion, with eCommerce-related revenues representing 20%, an increase of almost 150% over 1997. Forbes magazine ranked AMS number 94 out of 400 of the best-performing big companies in the U.S. in their &uot;Best of the Biggest.&uot; AMS can be found on the World Wide Web at www.amsinc.com.

About SilverStream

SilverStream Software, Inc., a global Internet infrastructure company, provides software and services for building, deploying and managing large-scale Internet, e-commerce, business-to-business, enterprise portal and intranet applications. The SilverStream Application Server offers customers a proven, scalable and reliable platform with comprehensive support for the Java2 Enterprise Edition (J2EE) standard, plus value-add features for rapid application development and deployment. Used in corporations throughout the world, the SilverStream Application Server is changing the way business is being conducted in Fortune 2000 companies such as ARCO, Associated New Media, Ameritech, Bell Atlantic, Chevron and the Chicago Stock Exchange.

SilverStream Software http://www.silverstream.com is publicly traded on the NASDAQ national market under the symbol (SSSW) and is based in Burlington, Massachusetts.

SilverStream is a registered trademark of SilverStream Software, Inc. All other names are trademarks or registered trademarks of their respective owners.

This release contains information about management's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, uncertainty related to consummation of binding agreements with AMS and other prospective business partners, competition, development of the market place, product development and enhancement, technological changes and other factors that are discussed in the Company's most recent quarterly report on Form 10-Q and other documents that are periodically filed with the SEC.