Bluestone Consulting Helps CDNOW Build Its Cosmic Music Network in Less Than Four Months to Bring Dynamic Music Community to 2.7 Million Customers -- Cosmic Music Network, CMN, Powered by Bluestone Software's Award-Winning Sapphire/Web Application Server.

Business Editors/Hi-Tech Writers

MOUNT LAUREL, N.J.--(BUSINESS WIRE)--Dec. 20, 1999

Bluestone Consulting(TM), Inc. (BCI), a premier provider of Internet services, and Bluestone(R) Software, Inc. (Nasdaq: BLSW), a leading provider of Enterprise Interaction Management software, today announced that Bluestone Consulting helped CDNOW(TM) (Nasdaq: CDNW) build its Cosmic Music Network (CMN) in less than four months using Bluestone Software's award-winning Sapphire/Web(R) Application Server.

Up and running since November 18, CMN is the ultimate resource for unsigned bands. The Internet's most dynamic music community, CMN brings together eclectic musicians from all over the world, giving fans the music they want, and bands the audiences and resources they need.

CDNOW, a leading online music destination, created CMN to unite independent artists and music lovers through a comprehensive and innovative online community. CMN provides bands with a wealth of free information and resources to promote their music, as well as access to an audience of 2.7 million CDNOW music-loving customers. Music fans can use CMN to discover new and emerging artists and meet other fans with similar musical interests. Bands interested in joining CMN can register online for free at cosmic.cdnow.com.

"To foster the spirit of community, CMN was conceived as an interactive environment, with personalization, chat, and page building center stage," said Russ Cherry, vice president of technology at CDNOW. "BCI fused technology with function through their D2R(TM) Methodology to build an environment that sets a standard for digital communities."

Added Joe Bilman, CMN senior product manager, "CMN is an extension of CDNOW's goal of leveraging the Internet to the benefit of bands and their fans. Bluestone Consulting furthered that goal by helping build a cutting-edge, scaleable site that provides an ultimate sense of community."

To support the high level of activity at CMN, Bluestone Consulting developed and deployed the site on Sapphire/Web to take advantage of the platform's proven fault tolerance and scalability. Key to the selection of Sapphire/Web were the persistent-state and the load balancing features, which ensure superior performance as site traffic surges during peak usage hours. Sapphire/Web's implementation of JavaBeans and Servlets also allowed Bluestone Consulting to tightly integrate CMN with custom-built content management solutions and several third-party components, including chat software, a message board, and an advertising package.

"The next wave of Internet usage will revolve around digital communities," said Chuck Patrick, managing director, Bluestone Consulting. "CDNOW's Cosmic Music Network is an innovative community environment fostering intimate user experiences. We are proud to be a part of CDNOW's CMN initiative."

About Bluestone Software, Inc.

Bluestone(R) Software, Inc. is a leading provider of Enterprise Interaction Management software. Companies deploying Internet Commerce applications like ARI, Conexant (formerly Rockwell Semiconductor), Dreyfus Corp., Eli Lilly, MCI WorldCom, Reliance National, and Time Inc. depend on Bluestone Sapphire/Web(R) and Bluestone XML Suite(TM) Application Server frameworks to integrate business applications into Web-enabled environments, manage information interactions, and exchange data with employees, partners, and customers. Bluestone is headquartered at 1000 Briggs Road, Mount Laurel, New Jersey, 08054-4101, [phone]. For more information about Bluestone, please call 888-Bluestone, visit http://www.bluestone.com, or e-mail [e-mail].

About Bluestone Consulting, Inc.

Bluestone Consulting (BCI) is a leading, boutique eServices firm providing consulting, project management and technology solutions to global businesses. Drawing upon diverse capabilities and robust technologies, BCI helps companies enhance customer relationships in the digital economy and is revolutionizing the Internet services industry with its customer needs continuum and D2R(TM) Methodology. BCI is headquartered in Mt. Laurel, NJ, with regional offices throughout the United States, and can be found on the Web at http://www.bci-bluestone.com.

The Bluestone Consulting name, logo, and D2R Methodology are trademarks of Bluestone Consulting, Inc. Bluestone and Sapphire/Web are registered trademarks, and Bluestone XML Suite is a trademark, of Bluestone Software, Inc. CDNOW is a trademark of CDNOW, 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 Software's publicly filed reports with the Securities and Exchange Commission, which may cause Bluestone Software'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 Software's objectives and plans will be achieved.