Ariba Expands Enterprise Spend Management Solution with Merck; Merck Hits One Million Purchase Order Milestone with Ariba Buyer.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 8, 2003

Ariba,(R) Inc. (Nasdaq:ARBA), the leading Enterprise Spend Management (ESM) solutions provider, announced that Merck & Co., Inc. (NYSE:MRK), a leading global research-driven pharmaceutical products and services company, continues its commitment with Ariba to further support its company-wide spend management initiative. Merck complemented its Ariba(R) Buyer(TM) procurement solution with Ariba(R) Enterprise Sourcing(TM), Ariba(R) Analysis(TM), Ariba(R) Contracts(TM) and Ariba(R) Invoice(TM).

An Ariba Buyer user since 1998, Merck has deployed the solution to 30 sites in 11 countries around the globe, and transacts one million purchase orders annually.

Merck's relationship with Ariba and its use of the ESM solution set continues to drive the organization to greater efficiencies. "Merck recognizes the benefit in spend management functionality leveraged via the Ariba platform to effectively capture and manage more global spend, and provide key decision makers with access to data for timely and improved decision support," said Noreen Higgins, director, Global Procurement, Merck.

Ariba Enterprise Sourcing enables professional buyers at Merck to electronically automate and manage the complete sourcing process, including locating suppliers, generating requests for quotations, and negotiating contract terms. Ariba Analysis enables Merck to gain visibility into its spending, determine spend patterns and identify opportunities for savings. Ariba Contracts is designed to automate and streamline Merck's contract management processes.

"Merck is pleased with the results achieved over the past several years utilizing Ariba Buyer and is ready to expand its spend management initiative with additional Ariba Spend Management solutions," said Jeanne Stahl, vice president, Global Procurement. "The integration of the Ariba solutions to each other, and to our back-end systems, enables us to manage spend in many categories and to capture valuable spend data for ongoing analysis, reporting and spend management planning.

"Merck is an excellent example of a company that is embracing spend management," said Kevin Costello, EVP Sales and Solutions, Ariba. "Merck has the right strategy, focus, and people, and these attributes combined with Ariba's success in bringing spend management benefits to the world's top 10 pharmaceutical companies by revenue, makes for a great team poised to achieve significant results."

About Merck

Merck & Co., Inc. is a global research-driven pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures.

Forward-Looking Statements 

This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. The forward-looking statements include statements regarding product development. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned in the cautionary statements in Item 1 of our Form 10-K for the year ended Dec. 31, 2002, and in our periodic reports on Form 10-Q and Form 8-K (if any) which we incorporate by reference.

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 650-390-1000 or at www.ariba.com.

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; 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 our business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-K filed April 10, 2003 and in its Form 10-Q filed August 11, 2003.

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.