Active Software Enters into Multi-Million Dollar Partnership with NTT Software Corporation to Expand Operations in Japan.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 19, 2000

Leading Japanese Software Corporation to Adopt ActiveWorks for

Internal Use and to Provide Rapid eBusiness Integration Solutions

Based on ActiveWorks

Active Software, Inc. (Nasdaq:ASWX), a leading provider of eBusiness integration software products, today announced a multi-million dollar partnership with NTT Software Corporation, the software arm of the world's largest telecommunications company, to increase its presence in the Japanese market. In response to strong global demand for eBusiness integration solutions, Active Software has contracted with NTT Software to be the sole distributor of Active Software's ActiveWorks(TM) Integration System in Japan. Under terms of the agreement, NTT Software will market, sell and support Active Software's suite of integration software products as part of its Electronic Business Solution, enabling Japanese customers to strengthen their competitive position in today's Internet-based economy.

"We're delighted to partner with Active Software to expand our consulting and systems integration services to include Enterprise Application Integration (EAI) solutions that will set the stage for eBusiness," said Dr. Seishiro Tsuroho, CEO, NTT Software Corporation. "After evaluating the technology and identifying early stage customers, we chose to enter into an exclusive partnership with Active Software because of their extensive customer base, technology vision and ability to rapidly deliver eBusiness solutions. These attributes fit well with what we are trying to achieve at NTT Software -- fast creation of integration solutions which enable tangible business benefits."

"As we continue to expand globally, we are partnering with market leaders such as NTT Software to help customers worldwide rapidly integrate business-critical applications within their organization and across their trading networks," said Jim Green, chairman and CEO, Active Software. "We believe that NTT Software's ability to create solutions based on ActiveWorks that address the entire spectrum of a customer's integration requirements will provide a significant competitive advantage for Japanese businesses as well as increase our penetration of the Japanese eBusiness market."

Demands for integration solutions are increasing worldwide. The Hurwitz Group, a leading analyst and advisory firm focused on strategic eBusiness applications, recently published a report, Enterprise Applications Integration (EAI) and eBusiness: Turning Opportunities into Customers, which identified corporate eBusiness transition as a significant challenge companies must resolve to remain competitive in the year 2000 and beyond. Based on a survey of one hundred mid- and senior-level IT and business managers in the high-tech, financial services, manufacturing and telecom industries, the report recommends that companies must have a strong eBusiness strategy in place by the end of next year, to become more strategic, integrated organizations or risk being left behind. The report is available on Active's website at www.activesw.com.

The ActiveWorks Integration System

ActiveWorks is the only eBusiness solution of its kind to offer a flexible, scalable and reusable platform that enables customers to quickly become eBusinesses by linking their front-office, back-office, supply chain and eCommerce operations. This 4th generation Enterprise Application Integration (EAI) technology offers InterActions, Intelligent Adapters and Visual Design Tools, all of which will help accelerate a company's time to market.

About NTT Software Corporation

NTT Software Corporation was founded in July 1985, when Nippon Telegraph and Telephone Corporation (NTT), the world's largest telecommunications company, was privatized. NTT Software started its business by carrying out design and building tasks for the development of advanced and large-scale telecommunications technology for NTT Laboratories and it has developed business for various areas including Internet technology, virtual space technology and packaged software. The company was certified for ISO9001 in February 1998 and acquired international credibility for corporate-wide attention to quality assurance. NTT Software established its Tokyo Headquarters in December 1998 to strengthen sales activities and for collecting and dispatching information. In order to expand the market out of the NTT group and structural reinforcement of merchandise development, NTT Software enforced a modification of organization.

Active Software

Founded in 1995, Active Software, Inc. (Nasdaq:ASWX) 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 150 customers in industries such as telecommunications, financial services, government, technology, utilities, distribution, manufacturing and transportation. Active Software's headquarters are in Santa Clara, CA. 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; delays in development or shipment of the Company's products; the Company's substantial dependence on its ActiveWorks software products; the uncertain market acceptance of eBusiness integration software products; the Company's need to expand its sales and distribution channels; the Company's reliance on system integrators and other strategic relationships, as well as applications made by third parties; and the introduction of new products or services by major competitors. 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.

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.