Aberdeen Group Selects Two Ariba Customers as ''Best Practice'' Leaders for Excellence in Spending Analysis.

SUNNYVALE, Calif. -- Limited Brands and PPG Industries Are Recognized as Spend Management Innovators 

Two customers of Ariba(R), Inc. (Nasdaq:ARBA), the leading Spend Management solutions provider, have been named as "best practice" leaders in spending analysis by Aberdeen Group, a Boston-based research firm. Limited Brands and PPG Industries were named in a new report titled "Best Practices in Spending Analysis," which highlights the spend analysis strategies and successes of eight companies through detailed case studies demonstrating best practices in spend data management.

Aberdeen estimates that enterprises are losing more than $260 billion a year because supply managers and executives cannot effectively organize and analyze spend data. To better understand the strategies required for successful spend data management, Aberdeen examined spend analysis strategies and practices at more than 30 leading enterprises before selecting the eight winners.

"Today, PPG Industries has 95 percent of indirect spending under central visibility and control with the help of our data warehouse initiative and Ariba solutions," said Jim Polak, director of general purchasing at PPG. "Every PPG professional buyer can access spending data to support improved strategic decision making. More than $200 million has been sourced through our Ariba solutions to date, resulting in 90 percent supplier reduction and 10 percent savings in overall costs."

According to the Aberdeen report, "few companies clearly understand the extent of the problem that inaccurate spend data poses to their companies. Even fewer understand what procedures are required to fix this problem." The report also states that companies lacking timely and consistent data fail to uncover significant cost savings and performance opportunities within their products, inventories, and supply bases. By contrast, "accurate spend data provides factual insight and direction for sourcing and business strategies."

"Ariba Analysis customers are among the most strategy-focused and innovative companies in their industries," said Dave McCormick, president, Ariba. "We have worked closely with both Limited Brands and PPG Industries to help each increase their spend visibility and put spending controls in place so they can drive significant cost savings enterprise-wide. We are proud that Aberdeen has recognized two Ariba customers who have incorporated our solutions into their spend data management initiatives as best practice leaders."

Aberdeen determined that the most successful spend data management initiatives:

--Audit existing spend data management capabilities

--Access all spend-data sources within and outside the enterprise

--Adopt a common classification schema enterprise-wide

--Establish efficient and repeatable data cleansing and classification capabilities through the use of software or services

--Augment category expertise to ensure data and classification accuracy and validation

--Classify spending at a detailed level

--Enhance core spend data with vital business intelligence

--Increase frequency and coverage of spending analyses

--Utilize advanced reporting and decision support tools

--Continuously expand uses and scope of spend data management program

To access Aberdeen's complete report, please visit www.aberdeen.com/summary/report/other/spendAnalysis_093004.asp.

About Ariba, Inc.

Ariba, Inc. is the leading provider of Spend Management (SM) solutions. Ariba helps companies realize rapid and sustainable bottom-line results. Successful companies around the world in every industry use Ariba Spend Management software and services. Ariba can be contacted in the U.S. at 1-650-390-1000 or at www.ariba.com.

Ariba and the Ariba logo are registered trademarks of Ariba, Inc. Ariba Spend Management, Ariba Analysis, Ariba Buyer, Ariba Category Management, Ariba Contracts, Ariba Travel & Expense, Ariba Workforce, Ariba Invoice, Ariba eForms, Ariba Enterprise Sourcing, Ariba Supplier Network, BPM Services, Power Sourcing, Total Spend Capture and PO-Flip are trademarks or service marks of Ariba, Inc. All other trademarks are property of their respective owners.

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Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba's expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba's operating and financial results to differ materially from its current expectations include, but are not limited to: delays in development or shipment of new versions of Ariba's products and services; lack of market acceptance of Ariba's existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the ability to attract and retain qualified employees; difficulties in assimilating acquired companies; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions, including a recession; inability to control costs; changes in the company's pricing or compensation policies; inability to successfully manage a reduction in the company's workforce; significant fluctuations in our stock price; the outcome of pending or potential future regulatory or legal proceedings relating to the restatement of our financial statements and the level of associated professional fees and expenses; the impact of acquiring Alliente, Softface and FreeMarkets, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-Q filed August 13, 2004 and in its Form S-4 filed May 13, 2004.