Barrack Rodos Files Suit Against Mercator Software, Inc. Alleging Misrepresentations.

Business Editors/Legal Writers

PHILADELPHIA--(BUSINESS WIRE)--Sept. 8, 2000

Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:

Barrack, Rodos & Bacine announces that a class action lawsuit was filed on behalf of purchasers of the securities of Mercator Software, Inc. ("Mercator" or the "Company") (Nasdaq: MCTR) between April 20, 2000 and August 21, 2000, inclusive. A copy of the complaint filed in this action can be viewed on our website at: http://www.barrack.com.

To sign up online: http://www.barrack.com/NewCases/NewCases.htm.

The action is pending in the United States District Court, District of Connecticut, against defendants Mercator Software, Inc., Constance F. Galley (Chairman and Chief Executive Officer of the Company), Kevin McKay (former Chief Financial Officer) and Ira Gerard (former Vice President - Finance and former Chief Financial Officer).

The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 20, 2000 and August 21, 2000, thereby artificially inflating the price of Mercator common stock.

Specifically, the statements issued by the defendants, among other things, under-reported the Company's expenses, thereby falsely inflating its earnings in violation of Generally Accepted Accounting Principles. When the Company announced on August 21, 2000, after the close of the market, that it would be restating and lowering its earnings for the first and second quarters of 2000 to account for approximately $2.4 million of under-reported expenses, its stock fell approximately 20% when trading resumed the next day.

The Plaintiff seeks to recover damages on behalf of all purchasers of Mercator securities during the Class Period. He is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 25 years.

The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex cases. For more information about Barrack, Rodos & Bacine, please visit their website at http://www.barrack.com.

If you are a member of the Class described above, you may, no later than October 23, 2000, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this case or your rights or interests, please contact Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number 888-417-7306 or 215-963-0838 or by e-mail at [e-mail].