Ariba Spend Management Solutions Selected by Caterpillar; Leading Manufacturing Company Selects Ariba to Develop a Customized Global Indirect Purchasing System.

SUNNYVALE, Calif. -- Ariba,(R) Inc. (Nasdaq:ARBA), the leading Spend Management solutions provider, today announced that Caterpillar Inc. has selected Ariba(R) Spend Management solutions to manage Caterpillar's global procurement cycle. Caterpillar is the world's leading manufacturer of construction and mining equipment, clean diesel and natural gas engines and industrial gas turbines.

The company will use Ariba(R) Buyer(TM), Ariba(R) Contracts(TM), Ariba(R) Invoice(TM) and Ariba(R) eForms(TM) to streamline its purchasing process for more visibility, optimization and control of its enterprise-wide spending.

Ariba designed and developed a customized global indirect purchasing system that will manage Caterpillar's full spending lifecycle -- from planning to payment -- and will put spend management at the front lines of the business. The Ariba solutions are expected to reduce processing time and costs, improve contract efficiency, and provide better control and visibility into the entire procurement lifecycle.

"Ariba's tightly integrated indirect procurement solutions are built on a single, closed-loop process," said Michael Schmitt, executive vice president and chief marketing officer, Ariba. "Our solutions provide strong content management features, a common requisition interface, robust approval routing, tightly controlled ordering and receiving functions, and the ability to interface with legacy financial systems."

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 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.