Active Software Supports XML for Rapid Business-to-Business Integration; New ActiveWorks XML Adapter Represents First Stage of Multi-Phase Business-to-Business Strategy.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 27, 1999--

Active Software, Inc. (Nasdaq:ASWX), a leading provider of eBusiness integration software products, today announced a new Extensible Markup Language (XML) Adapter, enabling customers to quickly and easily integrate XML-based applications with a wide variety of enterprise applications.

Today's announcement represents the first stage of the company's multi-phase business-to-business (B2B) strategy, named "Project Broadband," which will be unveiled over the next two quarters. Upon completion of Project Broadband's final phase, Active Software will provide the industry's only comprehensive solution for dynamically integrating applications within and across the extended enterprise, addressing all aspects of creating and managing Internet-based trading partner communities.

XML has emerged as one of the most significant standards in eBusiness integration as it allows business users to extend their integration systems outside the walls of their company to business partners and customers to support supply chain and eCommerce initiatives. As a result, customers are rapidly embracing XML as a core part of their B2B strategies, while software vendors are rushing to incorporate XML into their next-generation products. Active Software's XML Adapter allows XML and non-XML based enterprise applications to communicate with XML-based systems, enabling a seamless flow of information for organizations engaged in B2B collaboration.

"Competing in today's business environment means being able to rapidly assemble communities of customers, partners and suppliers in a way that allows them to seamlessly interchange information and increase their competitiveness," said Jim Green, chairman and CEO, Active Software. "Project Broadband's support of XML and future B2B integration initiatives, will enable Active Software to provide high bandwidth integration of businesses over the Internet, accelerating the adoption of eCommerce across the entire value chain."

ActiveWorks XML Adapter

Active Software's XML Adapter is one in a family of over 50 Dynamic Adapters that integrate diverse information resources, including packaged and custom applications, databases, mainframes and middleware, through the ActiveWorks(TM) Integration System. The XML Adapter provides a robust, user-configurable pathway between the ActiveWorks(TM) Integration System and XML-based applications. This enables business analysts to rapidly build and implement eBusiness links between enterprise applications, or to extend these links to their customers, partners, and suppliers. -0-

     Product features include:

--   Bi-directional exchange of information with XML data sources and
     targets.
--   Dynamic mapping of XML schemas to other enterprise applications.
--   Support for multiple modes of interaction including file, object
     and Web-based.

Availability

The ActiveWorks XML Adapter will be commercially available in November of 1999 and can be licensed directly from Active Software or through select system integrators and value added resellers.

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 130 customers in industries such as telecommunications, financial services, government, technology, utilities, distribution, manufacturing and transportation. Active Software's headquarters are in Santa Clara, Calif. 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; the introduction of new products or services by major competitors; and uncertainties regarding the impact of the Year 2000 issue. These and other risk factors are described in detail in the Company's prospectus dated August 12, 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.