Active Software Delivers Rapid eBusiness Solutions to Telecommunications Industry.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 31, 2000

Alliances with Industry Leading Application

and Consulting Providers Offer Fast Time-to-Market

and Proven Solutions

Active Software, Inc. (Nasdaq:ASWX), a leading provider of eBusiness integration software products, today announced the results of a key marketing initiative focused on the telecommunications industry.

The initiative has resulted in a series of new customers and industry alliances with leading application and consulting providers, who have found the ActiveWorks(TM) Integration System to be the ideal integration platform for the telecommunications industry.

Active Software Provides Proven Results

Active Software has worked with its partners to successfully deliver eBusiness integration solutions to more than a dozen leading global telecommunications companies such as Lucent, Concert Systems, Ipulsys, Level 3 Communications, Mannesmann Arcor, MediaOne, RCN, Telecel, Telenordia, Teligent, Time Warner and others.

Recent results from customers using Active Software's Telecommunications eBusiness Integration Solutions include:

--   Reduced wireless telecommunications service provisioning from
     three days to one minute.

--   Reduced the time to bill 50,000 new customers from 30 days to
     less than one day.

--   Implemented Web-based self-service cable modem provisioning for a
     joint venture between cable and telecommunications companies in
     90 days.

--   Non-Y2K compliant customer billing system replaced and integrated
     with existing accounts receivable and customer systems in 6
     weeks.

--   Automatic processing of network equipment trouble tickets
     eliminating all manual processing in four weeks.

Active Software Expands Telecommunications Industry Initiative

Active Software also announced today that it has expanded its telecommunications industry initiative to deliver integration solutions to customers within and between the following three mission critical areas: customer facing applications, network and service operations, and the telecommunications back-office.

Active Software has formed strategic alliances with Siebel Systems, Hewlett-Packard Company, and American Management Systems (AMS) to specifically address these three mission critical areas, and will work with a number of additional partners to bring these solutions to market.

For additional information on Active Software's partnerships with HP and AMS, see separate press releases, &uot;Active Software and HP Partner to Provide eBusiness Solutions to the Telecommunications Industry,&uot; and &uot;AMS and Active Software Expand Telco Partnership to Speed OSS Integration for Communications Service Providers,&uot; issued January 31, 2000.

&uot;The telecommunications market accounted for over 20 percent of our 1999 revenues, which supports our position that many companies in this industry have an immediate need for eBusiness integration solutions,&uot; said Jim Green, chairman and CEO, Active Software.

&uot;The expansion of our telecommunications industry initiative will further enable Active Software and its partners to deliver complete business solutions to help telecommunications companies more rapidly solve the difficult problems involved in becoming eBusinesses.&uot;

Rapid Delivery of Integration Solutions

Active Software and its partners offer eBusiness solutions that integrate the following three categories of mission-critical telecommunications applications and automate business processes such as flow through provisioning, cross-selling and Web-based customer service:

--   Customer facing - Customer Relationship Management (CRM), sales,
     eCommerce and service management applications.

--   Network and service operations - Network management, order
     gateway, service activation, and asset/inventory applications.

--   Operational - Order management/provisioning, billing and
     financial/Enterprise Resource Planning (ERP) applications.

By making information immediately available throughout the organization and executing business processes electronically, telecommunication companies can realize faster time-to-market, increase sales, and improve customer retention.

--   Customer Facing Application integration solutions are being
     delivered in conjunction with a partnership with Siebel Systems,
     the leader in the Enterprise Relationship Management software
     market. In tight concert with Siebel's Communications and Energy
     Business Unit, Active Software and Siebel have successfully
     delivered solutions to a number of joint customers, and continue
     to partner very closely. In addition, the ActiveWorks Adapter for
     Siebel has been certified through the Siebel Certification
     Program.

--   Network and Service Operation solutions for integrated Operations
     Support System (OSS) solutions are being developed as a part of
     an expanded alliance with Hewlett-Packard Company. These
     solutions will enable customers to rapidly deploy and integrate
     their various OSS and network operation applications through
     enterprise-scale business processes, such as Service Delivery,
     Usage and Assurance.

--   BackOffice/Operational Application integration solutions are
     being developed through a partnership with AMS. Under the
     expanded partnership, Active Software and AMS will work together
     to develop Adapters and Integration Solutions for key
     telecommunications applications in billing and order provisioning
     applications from vendors such as Kenan Systems and MetaSolv.

&uot;The new competitive landscape in telecommunications has made integration of eBusiness with operations support and billing systems a key requirement,&uot; said Richard Campione, vice president and general manager, Siebel Communications and Energy. &uot;We have had great success working with Active Software to deliver customer solutions that coordinate disparate business processes and provide fast implementation.&uot;

&uot;Modern telecommunications firms can't afford to have their billing and order management applications be `stovepipes' of information,&uot; said Dave Nestler, vice president, AMS Telecommunications Industry Group.

&uot;By building and delivering solutions with the ActiveWorks Integration System we know we have a scalable and secure platform that can enable us to implement solutions up to 10 times faster than other methods--that's a real time-to-market advantage.&uot;

In addition, Active Software continues to expand its alliances with telecommunications software and consulting firms such as MetaSolv Software and Portal Software, which were announced in December 1999. Active Software also has alliance agreements and successful joint customers with Enterworks, Ernst &Young, IGS, Siemens Business Services, and Staffware.

Active Software's Telecommunications eBusiness Integration Solutions

Active Software's Telecommunications eBusiness Integration Solutions are designed in a modular fashion for rapid results. These solutions consist of the following modules:

Dynamic Adapters have recently been announced for several popular telecommunications applications such as Kenan, MetaSolv, and Portal. These Adapters expand the company's industry leading suite of Adapters, which includes other applications such as HP Changengine, Siebel, Clarify, and Vantive, bringing the total number of ActiveWorks Adapters to more than 50.

In addition, Adapters for Architel, Cambio, HP OpenView Element Management Framework (OEMF) and other systems are expected to be available in the second quarter of 2000. By expanding its Dynamic Adapter product line, Active Software enables telecommunications customers to more rapidly implement their eBusiness solutions.

ActiveWorks InterActions are reusable integration solutions that enable telecommunications companies to automate business processes both inside their organization and with B2B trading partners. InterActions are made up of two main parts: Integration Components and Integration Processes. Once defined, InterActions can be used as-is or easily customized, enabling customers to deploy solutions up to 10 times faster than other methods.

About Active Software, Inc.

Founded in 1995, Active Software, Inc, is a leading provider of eBusiness integration software products that enable the integration of enterprise software applications within and across the extended enterprise.

Active Software has more than 160 customers in industries such as telecommunications, financial services, government, technology, utilities, distribution, manufacturing and transportation. Active Software's headquarters are in Santa Clara. For more information, visit the company Web site at www.activesw.com.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, without limitation, Active Software's limited operating history, potential fluctuations in operating results, the company's substantial dependence on its ActiveWorks software products, the company's need to expand its sales and distribution channels, and the uncertain market acceptance of eBusiness integration software products. These and other risk factors are described in detail in the Company's prospectus dated August 12, 1999, in its Form 10-Q for the quarter ended September 30, 1999, and in its other filings with the Securities and Exchange Commission.

Note to Editors: The Active Software logo, Active Software and ActiveWorks, are trademarks or registered trademarks of Active Software Inc. All other trademarks mentioned herein are the property of their respective owners.