Ariba Announces Agreement to Acquire Softface.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--March 31, 2004

Latest Acquisition Adds Advanced Spend Visibility Technology to

Enterprise Spend Management Solution, Enabling Companies to Identify

Hidden Savings Opportunities

Ariba, Inc. (Nasdaq:ARBA), the leading Enterprise Spend Management (ESM) solutions provider, today announced that it has agreed to acquire Softface, Inc., a privately-held spending performance management company. Ariba, already recognized as the industry leader in sourcing and procurement solutions, now moves into a leadership position in the spend visibility segment as well.

The acquisition, which is expected to close in early April, extends Ariba Solutions Delivery services and Ariba Analysis software capabilities in the areas of spend data cleansing, enrichment and classification. This technology allows organizations to take problematic, largely unclassified data from multiple, disparate systems and convert it into actionable spend information that can be leveraged to gain significant organization-wide savings.

Ariba and Softface have been in a strategic relationship since July 2003 and have six joint customers, including PPG Industries - which was recently recognized for its industry leading initiatives in spend visibility (Purchasing Magazine Award, March 2004).

"This acquisition brings highly advanced spend-visibility technology into Ariba, enhancing our ability to address a common, complex problem faced by most large corporations today - cleansing and classifying spend data across multiple enterprise systems," said Michael Schmitt, Executive Vice President and Chief Marketing Officer, Ariba. "Combining Ariba solutions and domain expertise with Softface technology, Ariba can provide an automated, repeatable approach that allows customers to begin with the cleanest, most reliable spend data possible - information that is essential to successful spend analysis and sourcing efforts."

Industry Analysts Cite the Costs of Unusable Spend Data

Industry analysts have long emphasized the need for a sustainable solution that addresses the problem of unusable spend data across the enterprise.

"Spending visibility and analysis are the critical first steps in any successful spend management initiative," said Tim Minahan, VP of Supply Chain Research, Aberdeen Group. "Unfortunately, few companies truly know how much they spend and with whom -- and it's costing businesses $260 billion in missed savings opportunities annually. Combining Softface's advanced data cleansing, classification, and enrichment technologies with Ariba's growing force of consultants and spend category experts, will provide a compelling arsenal to attack this pervasive business challenge."

Customers Find Significant Savings through Spend Data Visibility

"After an extensive search of available spend analysis solutions, we selected Ariba and Softface to help us get more value from spend data coming from 20 different data sources and representing more than $5 billion of annual spend," said Jim Polak, Director of General Purchasing at PPG. "The combination of Ariba's spend management solutions and expertise, with Softface's advanced technology for data cleansing and classification is great news for PPG, and we expect the combined solution will help us identify and save millions annually due to data quality issues alone."

About Ariba, Inc.

Ariba, Inc. is the leading Enterprise Spend Management (ESM) solutions provider. Ariba helps companies develop and leverage spend management as a core competency to drive significant bottom line results. Ariba Spend Management software and services allow companies to align their organizations with a spend-centric focus and deploy closed-loop processes for increased efficiencies and sustainable savings. 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; the impact of recent workforce reductions on Ariba's operations; lengthening 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 legal proceedings relating to the restatement of our financial statements; the possibility that stockholders or regulatory authorities may initiate additional proceedings against Ariba and/or our officers and directors as a result of the restatements; the impact of acquiring Alliente and entering into an agreement to acquire FreeMarkets, including the disruption or loss of customer, business partner, supplier or employee relationships; the level of costs and expenses incurred by Ariba as a result of such transactions; and the level of professional fees and expenses incurred by Ariba in connection with its previously disclosed accounting review and associated regulatory and litigation proceedings. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-K/A filed January 28, 2004 and in its Form S-4 filed February 12, 2004.