Ariba and Epylon Announce Global Strategic Alliance to Serve Public Sector with Integrated eCommerce Solution.

Business Editors/High-Tech Writers

SAN FRANCISCO and MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--July 19, 2000

Ariba, Inc. (Nasdaq:ARBA), the leading business-to-business (B2B) eCommerce platform provider and Epylon Corporation, the leading provider of hosted eBusiness solutions for education and government institutions, today jointly announced a global strategic alliance to develop an integrated platform specifically designed to meet the needs of public sector procurement.

The public sector demands robust procurement solutions combined with functionality tailored to their specific needs, delivered in a hosted environment that is fully integrated to their existing financial systems. Epylon has teamed with Ariba and enlisted Andersen Consulting to fulfill these needs. Ariba brings core capabilities in B2B eCommerce designed for large scale implementations; Epylon delivers technology designed around the public sectors' unique operating and workflow environment; and Andersen Consulting offers world-class expertise in public sector business processes, eCommerce and business integration. Epylon, together with Ariba and Andersen Consulting, is poised to become a leading B2B eCommerce solution capable of meeting the public sector's complex requirements as well as delivering these solutions in a fully hosted environment.

Epylon's set of tailored public sector procurement tools include eQuote, which produces a price quote to buyers based on the criteria they specify; Audit Trail, which provides the necessary archive capability for data such as quote and bid responses and purchase orders; and eDocument Center, which enables the sharing of bid documents, product specifications and policy manuals among the public sector community. In addition, Epylon's fast-growing supplier network consists of public sector suppliers, products and catalogs.

As part of the alliance, Epylon has licensed the Ariba(R) B2B Commerce Platform, including Ariba Buyer, Ariba Marketplace and Ariba Dynamic Trade. The Ariba B2B Commerce Platform helps companies realize greater economies of scale and commerce process efficiencies, resulting in lower costs and competitive advantage.

As the global leader in B2B eCommerce and the forerunner for eCommerce in the public sector, Ariba brings expertise in large procurement software solutions. "By providing public sector institutions and agencies with access to an open Internet marketplace, procurement and commerce practices stand to change dramatically," said Keith Krach, chairman and CEO of Ariba, Inc. "We have already witnessed the dramatic shift to Internet-based eCommerce in the private sector, but a similar movement in the public sector is still at infancy. Epylon's compelling business model, strong management team and continued momentum make it a leader in public sector eBusiness. Our joint solution is positioned to revolutionize the way governments around the world conduct business."

Epylon has worked successfully with the education and government communities on co-development of its solutions for more than a year. "Ariba has continuously demonstrated its unmatched leadership in B2B eCommerce solutions. Together we plan to offer an unbeatable and practical value proposition to the public sector," said Stephen George, founder and CEO of Epylon. "Epylon will overlay our tailored public sector product features onto the Ariba B2B Commerce Platform, resulting in barrier-free access to a best-of-class eBusiness solution tailored to meet the stringent requirements of the public sector. Our alliance with Andersen Consulting completes the team necessary to add real value to the public sector. It's an exciting win-win-win proposition."

About Ariba, Inc.

Ariba, Inc. is the leading business-to-business (B2B) eCommerce platform provider. Through the Ariba B2B Commerce Platform an open, end-to-end infrastructure of interoperable software solutions and hosted Web-based commerce services the company enables efficient online trade, integration and collaboration between B2B marketplaces, buyers, suppliers and commerce service providers. The global reach and best-of-breed functionality of the Ariba B2B Commerce Platform creates Internet-driven economies of scale and process efficiencies for leading companies around the world, including more than 20 of the FORTUNE 100. Ariba can be contacted in the United States at +1.650.930.6200 or at www.ariba.com.

About Epylon Corporation

Epylon Corporation is the leading provider of hosted eBusiness solutions for education, government and other public sector institutions. Epylon's eProcurement solution is designed entirely around the needs of public sector purchasing professionals. The company currently has more than 1,200 registered school districts and government agencies, representing over $7 billion in annual spending, and more than 1,400 registered supply partners including Office Depot, Grainger, Virco, Staples, J.L. Hammett, Xerox, Wesco and Barnes & Noble.com. Headquartered in San Francisco, Calif., Epylon is privately held and can be found on the Web at www.epylon.com.