Arbortext Delivers 40% Revenue Growth in Third Quarter 2004; Increasing Market Interest in Enterprise Publishing Software Fuels 13 Consecutive Record Quarters.

ANN ARBOR, Mich. -- Arbortext, Inc., the leading provider of Enterprise Publishing Software, today reported its 13th consecutive record revenue quarter ending September 30, 2004, fueled by a 55% increase in new business bookings. Growing interest in Enterprise Publishing Software from organizations like Cypress Semiconductors (NYSE:CY), Eclipse Aviation, Honeywell Aerospace Electronics Systems (NYSE:HON), HP Services (NYSE:HPQ), LexisNexis, and the Norwegian Ministry of Defense are continuing to drive Arbortext's growth.

Only Arbortext offers a complete set of capabilities for Enterprise Publishing Software, including multiple authoring software for different types of users, a publishing server product that automatically assembles information, and development tools that streamline application development and maintenance. Using Arbortext Enterprise Publishing Software, organizations can create and automatically publish large amounts of information, such as technical manuals, product information and software documentation, to multiple audiences, in different languages and in any media format, all from a single source of content.

"Our continued leadership is reflective of our strategy to focus efforts around Enterprise Publishing," said Raymond Schiavone, President and CEO at Arbortext. "We have a great opportunity as organizations move away from the inefficient traditional desktop publishing software to seek the benefits that automation has to offer. I think our strategy continues to position us as the leader in the Enterprise Publishing market."

Third Quarter Highlights

--Closed 13th consecutive quarter of record revenue

--Reported double digit growth in every component of revenue, including licenses, maintenance and services

--Posted 55% growth in new business bookings globally

--Released Arbortext 5.1, expanding DITA support and providing enhancements to Styler, DCAM, Epic Editor and E3

--Expanded strategic partnerships with AVIC Information Technology Co., Ltd (Beijing, China) and CAC Corporation (Japan)

--Appointed Yoshifumi Hyodo as Country Manager for Japan, most recently as General Manager at Hummingbird Japan and Sales Director at Adobe Systems Japan

--Appointed Albert Leong as Country Manager for Asia Pacific and based in Singapore, most recently as President and CEO for SAP Learning Solutions

--Received KMWorld's "Trend Setting Product for 2004" award

About Arbortext

Arbortext is the leading provider of Enterprise Publishing software that enables organizations to create and automatically publish large amounts of information, such as technical manuals, pharmaceutical product information, legal information and software documentation. Enterprises around the world use our software to publish in multiple languages to multiple audiences in multiple hardcopy and electronic output formats. Arbortext's software is installed at over 1,400 organizations worldwide.

Current customers include American Express Financial Services, Audi, Boeing, Bombardier, British Aerospace, Caterpillar, DaimlerChrysler, Ericsson Telecom, Ford, General Electric, GM, IBM, International Thomson Publishing, Lucent, Nokia, Nortel Networks, PeopleSoft, Pfizer, Ricoh, Sun Microsystems, Toyota, United Airlines, Volkswagen and Volvo. Arbortext is a founding member and active participant in both the XML Activity of the World Wide Web Consortium (W3C) and the Organization for the Advancement of Structured Information Standards (OASIS). Headquartered in Ann Arbor, Michigan, USA, Arbortext has offices around the world. For more information, please visit www.arbortext.com.