B2C Website--CargoLargo--Deploys Bluestone Software's Application Server Platform to Leverage the Web as a Major Distribution Channel; Bluestone Total-e-ServerTM Provides the Foundation for Securing, Tracking and Selling Millions of Transporation, Manufac.

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--July 17, 2000

Bluestone(R) Software, Inc. (NASDAQ: BLSW), a leader in business-to-Web and wireless technologies, today announced that Recovery Management Corporation (RMC) has deployed Bluestone Total-e-Server(TM), the Application Server component of Bluestone's Total-e-Business(TM) platform, as the infrastructure to power its business-to-consumer (B2C) e-commerce Website--CargoLargo (www.cargolargo.com).

Recovery Management Corporation is a national leader providing inventory management resources to the transportation, manufacturing and retail industries. Its CargoLargo division brings consumers significant savings on lost cargo shipments, manufacturer and distributor overstocks, and closeout merchandise over the Web.

Because RMC and its CargoLargo Website handle more SKUs per year than the world's largest retailers, inventory control is a critical success factor. The Bluestone system ties together RMC's patented inventory control system with a back-end database containing information on millions of different products, thereby providing an automated system for securing merchandise and tracking it through to distribution. Bluestone Total-e-Server also gives RMC scalability and reliability needed for global online sales and the expansion headroom required for meeting future growth targets for Web-based, e-commerce sales to customers and businesses. Bluestone's usage-based pricing enables RMC to upgrade its computing infrastructure at any time, without incurring expensive software rewrites or licensing fees.

CargoLargo, live since June of this year, is RMC's first e-commerce Website developed, deployed and managed using Bluestone's Total-e-Business platform. RMC is now using Bluestone's software to develop several other e-commerce Websites, including a B2C auction Website and a business-to-business (B2B) fixed-price and auction Website.

"To succeed in the world of Web-based e-commerce, we must provide around-the-clock availability and timely response to consumers and businesses alike. To meet this need, we required a robust, scalable, industry-standard Application Server framework to manage all of our business processes and data--inventory, quantities, pricing and other supplemental data for millions of SKUs," said Robert Burcham, chief technology officer for Recovery Management Corporation. "Bluestone's Total-e-Server consistently receives high marks in the trade press, and meets all of our core technological requirements. From a business standpoint, Bluestone's usage-based pricing meshes well with our business model, giving us the ability to cost-effectively upgrade our computer systems as our business grows."

Added John H. Capobianco, senior vice president and chief marketing officer for Bluestone Software, "Bluestone's Total-e-Business platform enables companies like RMC to integrate different data sources into a distributed, scalable, robust Internet Operating Environment(TM) that offers extensibility for future expansion needs. The fact that RMC can successfully handle millions of product SKUs speaks volumes about the scalability and robustness of Bluestone-based solutions."

Total Platform Independence is Key

As a company that recovers freight, lost cargo and other items, RMC accesses server-class computers on a regular basis. The company runs a mixed computing environment, including systems from Dell, Compaq, and Sun Microsystems running the Red Hat Linux operating system. The 100% Pure Java architecture of Bluestone's Total-e-Server provides complete platform independence, enabling RMC to incorporate new hardware and operating systems from virtually any vendor into its data center with minimal effort. Bluestone's interaction-per-year based pricing model allows new systems to be added without increased costs.

"Bluestone maximizes our ability to scale our computing systems--we can deploy a Java Virtual Machine on any platform and instantly incorporate it into our computing infrastructure," added Burcham. "Had we selected another Application Server platform, we would pay a cost penalty per CPU for expanding our computing capacity."

In addition to providing the robustness, high availability and scalability RMC required for expanding global e-commerce sales, Total-e-Server enables rapid application development and deployment. According to Burcham, the learning curve for the company's programmers using Bluestone Total-e-Server was minimal. "Our programmers quickly came up to speed and are now some of the fastest, most expert Total-e-Server programmers in the world," said Burcham. "Web-based e-commerce is rapidly emerging as a major distribution channel for RMC, making time-to-market and rapid development a competitive imperative."

Finally, the fault tolerance and automatic fail-over features of Total-e-Server ensure that, no matter how many shoppers are interacting with RMC's e-commerce Websites, they will be continuously available. "Our aim is to provide consistently great values, the finest customer service and quick, accurate shipping," said Burcham. "Bluestone's Total-e-Server is at the heart of our ability to provide timely, reliable service to customers around-the-clock."

About Bluestone Software

Bluestone(R) Software, Inc., provider of Enterprise Interaction Management software, is a leader in business-to-Web and wireless technologies. Companies deploying e-business applications, like Avnet, CDNow, Food.com, MCI WorldCom, Planalytics, Reliance National, and Time Inc., rely on Bluestone's Total-e-Business(TM) platform to provide comprehensive e-business platforms, Internet-class infrastructures, and robust integration services that e-business success demands. Bluestone is headquartered at 300 Stevens Drive, Philadelphia, Pennsylvania, 19113-1597. For more information, please call 888-Bluestone or 610-915-5000, email [e-mail], or visit http://www.bluestone.com

Bluestone is a registered trademark, and Total-e-Server, Total-e-Business, and Internet Operating Environment are trademarks of Bluestone Software, Inc. All other names, brands or products may be trademarks or registered trademarks of their respective owners.

Certain statements in this press release constitute forward-looking statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements involve known and unknown risks, uncertainties and other factors, including those contained in Bluestone's publicly filed reports with the Securities and Exchange Commission, which may cause Bluestone's actual results, performance, or achievements or those of its customers or its industry to be materially different from the future results, performance or achievements expressed or implied by these forward looking statements. Specifically, the Company's beliefs with respect to the business opportunities presented by e-business and the Company's ability to profitably market and deploy its product solutions may prove to be inaccurate. In light of the significant uncertainties inherent in these forward looking statements, the information in this press release should not be considered a representation by the Company or any other person that Bluestone's objectives and plans will be achieved.