Ariba Delivers Improved Functionality to Market-Leading Strategic Sourcing Solution; Solution Combines the Best of Recently Merged Ariba and FreeMarkets.

SUNNYVALE, Calif. -- Ariba(R), Inc. (Nasdaq:ARBA), the leading Spend Management solutions provider, today announced the release and delivery of a Visibility and Sourcing Solution "feature pack" representing the unification of FreeMarkets and Ariba technological capabilities on a single Spend Management platform. Ariba merged with FreeMarkets in July of this year. The release contains increased functionality in each of Ariba's Strategic Sourcing modules including: Ariba(R) Sourcing(TM), Ariba(R) Analysis(TM), Ariba(R) Category Management(TM), and Ariba(R) Contracts Workbench(TM).

The new release integrates leading functionality from both Ariba and FreeMarkets, as well as functionality from Covisint, LLC, which FreeMarkets acquired last year, and Softface, Inc., which Ariba acquired earlier this year. The new solutions provide customers with unmatched sourcing expertise, delivering sustainable sourcing results with broad category experience, full closed-loop process coverage and deep penetration in global markets.

"We leveraged the QuickSource product to help create strong, successful sourcing initiatives, and we are very pleased with Ariba's thorough integration efforts," said Bill Northup, director of sourcing, Hubbell, Inc. "Now, having seen the Ariba sourcing solution and the added functionality of the unified platform, it's clear that a combination bringing together the best features from both solutions could enhance our Spend Management processes even further. Easy integration to our legacy systems also makes it possible for us to source direct materials with the enhanced solution, creating additional value for the company and our customers, world wide."

In the past year, Ariba has grown its Spend Management capabilities through organic development efforts, strategic acquisitions and its recently completed merger with FreeMarkets. The resulting mix of domain knowledge and extended expertise in sourcing and supply management has enabled Ariba customers to benefit from a comprehensive set of software and services, designed to create greater savings while driving efficiencies across operations.

"This release is yet another illustration of Ariba's emergence as the leader in the Spend Management solution category," said Dave McCormick, president, Ariba. "Ariba has consistently been hearing from our customers and partners, as well as from industry analysts, that the company is well positioned to capitalize on the growing Spend Management market. With these new product capabilities, Ariba is now able to serve the needs of our Ariba Sourcing customers even more effectively, helping them establish and maintain effective Spend Management practices ultimately creating bottom-line savings."

About Ariba, Inc.

Ariba, Inc. is the leading provider of Spend Management solutions to help 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.