Anchorage, Alaska Selects Ariba Spend Management Solutions; Cooperative Services Authority Plans ''Efficient Infrastructure'' to Help Reduce Deficit.

SUNNYVALE, Calif. -- Ariba(R), Inc. (Nasdaq:ARBA), the leading Spend Management solutions provider, today announced that it has signed an agreement with the Cooperative Services Authority (CSA) of Anchorage, Alaska. Under the terms of the agreement, the CSA will use Ariba(R) Buyer(TM) and Ariba(R) Analysis(TM) solutions as part of the overall strategy to reduce the municipality's deficit. The CSA will also work with other public sector entities within the state to assist them in gaining the same savings and efficiencies they anticipate from this program.

"The Municipality of Anchorage needs a comprehensive solution to establish an efficient procurement program," said Mark Begich, Mayor of Anchorage. Paul Wiltse, the Acting Director of the CSA, added, "We conducted extensive research into the available technologies that would drive enhanced efficiencies and improved results for our taxpayers, and ultimately decided that Ariba's solution was the best choice for increasing our economic efficiency."

The Ariba Buyer and Ariba Analysis solutions will be hosted by USi, an Ariba alliance partner. Under the terms of the agreement, the CSA will use the Spend Management solutions to source and ensure procurement compliance across a wide range of goods and services.

"We are honored and pleased that the CSA is choosing to leverage Ariba solutions as part of their Spend Management initiative," said Michael Schmitt, executive vice president, Ariba. "Ariba's focus on Spend Management is what sets us apart, and we look forward to helping the CSA achieve bottom-line results while providing their community with effective controls to manage spending and improve efficiency. After an intense evaluation of market offerings, we're pleased they had the opportunity to speak with numerous Ariba customers and receive quantifiable evidence of the results our solutions deliver."

About Ariba, Inc.

Ariba, Inc. is the leading provider of Spend Management 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.

Ariba Safe Harbor 

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.