Bluestone Software Enhances E-business Advantage At United Guaranty Corporation; Mortgage Insurance Company Counts on Sapphire/Web, Bluestone XML Suite To Expedite Delivery of Scalable, Cross-Platform, Data Transfer Solutions.

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--May 2, 2000

Bluestone(R) Software, Inc. (Nasdaq:BLSW), a leading provider of Enterprise Interaction Management software, today announced that United Guaranty Corporation has selected Bluestone's award-winning Sapphire/Web(R) Application Server framework and Bluestone XML Suite(TM) Integration Server as its next-generation e-business infrastructure.

Using the Bluestone technologies, United Guaranty will adopt a component-based application architecture to expedite delivery of new Web-based and internal e-business applications and services. United Guaranty will also use Bluestone's software to design new applications and to enhance a number of existing solutions, including RAPid Linksm, the company's flagship e-business service. Key to the Bluestone selection was the scalable, platform-independent infrastructure created by the 100% Pure Java Sapphire/Web Application Server. In addition, Bluestone's robust support for XML aligns with United Guaranty's vision of standardizing data access on XML.

"As the housing finance industry moves toward a highly competitive, Web-driven business, United Guaranty will continue to offer the best products and fastest solutions to customers in response to their market challenges," said Stephen Thomas, vice president-systems and technology at United Guaranty. "With Bluestone at the heart of our component architecture, we'll be able to build better software, and build it cheaper and faster than we could before. Within 24 months, we should be able to cut our development time by 50 percent or more."

Added John H. Capobianco, senior vice president and chief marketing officer at Bluestone Software, "United Guaranty epitomizes the challenges facing a successful, brick-and-mortar company that aggressively embraces e-business opportunities. With Sapphire/Web, United Guaranty can establish an application infrastructure that delivers high-performance, Web-based customer services without compromising the proven, legacy systems it has deployed on an array of server platforms. Meanwhile, Bluestone XML Suite lets the company expand and simplify data interchange with customers by using next-generation XML data integration technologies, without sacrificing the power of its current solutions."

Addressing the Criteria for Next-Generation Architecture

To select its next-generation e-business infrastructure, United Guaranty compiled a list of more than 40 evaluation criteria for judging vendors' solutions. The number one priority was cross-platform support. In addition to its IBM AS/400s and RS/6000s, the company's server platform mix includes several flavors of Unix, Linux, and Windows NT. "We want to transparently move data to - or scale applications across - whatever platforms we want, which is why we chose Bluestone," said United Guaranty's Thomas. "We looked at a lot of products and Bluestone fared better than others tested."

Scalability was the second key consideration at United Guaranty. Again, Bluestone was judged superior. In particular, company evaluators were impressed with Sapphire/Web's unlimited scalability and features, such as multiple deployment modes, zero-feedback loop load-balancing, database connection caching, independent state server, and application isolation.

Other Bluestone advantages, such as Sapphire/Web's unique Internet Quality of Service (IQS(TM)) will enable United Guaranty to establish service level differentiation, giving its best users the highest application performance possible. Bluestone's implementation of JavaBeans and Enterprise JavaBeans was also deemed superior, as was its agent-based, real-time monitoring facilities, and its advanced security console, which provides a point-and-click interface for security administration.

Bluestone also offered comprehensive XML-based data integration with its Bluestone XML Suite, which will let the company move from EDI- to XML-based data exchange and integration. Ultimately, United Guaranty plans to transition from EDI data transactions to XML. "We believe that XML is a logical `next step' following traditional EDI," said Thomas. "Bluestone XML Suite will give us far better cost-effectiveness and speed to develop applications, allowing us to reach smaller financial institutions that can't afford EDI."

About United Guaranty

Subsidiaries of United Guaranty Corporation write mortgage guaranty insurance for first- and second-mortgage loans. Mortgage insurance provided by triple-A-rated United Guaranty Residential Insurance Company (UGRIC) enables home buyers to purchase homes with low down payments, expanding home affordability for Americans in all income ranges. Based in Greensboro, NC, both United Guaranty and UGRIC are member companies of American International Group, Inc. (AIG), the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial coverages in the United States. All United Guaranty media releases may be viewed on United Guaranty's Web site at www.ugcorp.com.

About Bluestone Software

Bluestone(R) Software, Inc. is a leading provider of Enterprise Interaction Management software. Companies deploying e-business applications, like Avnet, CDNow, Food.com, MCI WorldCom, Reliance National, Planalytics, and Time Inc., rely on Bluestone Total-e-Business(TM), Bluestone Sapphire/Web(R), and Bluestone XML Suite(TM) 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 and Sapphire/Web are registered trademarks, and Total-e-Business, Bluestone XML Suite, and IQS are trademarks of Bluestone Software, Inc. RAPid Link is a service mark of United Guaranty Corporation. 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.