Bluestone Software Jumps the Pond to Establish European Office in United Kingdom; Steve Bale, Industry Veteran Who Spearheaded European Assaults for BEA and Oracle, To Head Up Bluestone's Europe, Middle East and Africa Operations.

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PHILADELPHIA--(BUSINESS WIRE)--Feb. 22, 2000

Bluestone(R) Software, Inc. (Nasdaq: BLSW), a leading provider of Enterprise Interaction Management software, announced that it has established its first office abroad with the appointment of Steve Bale as managing director of Bluestone's Europe, Middle East and Africa (EMEA) operations.

Bale brings a wealth of experience, industry connections and in-depth customer understanding to Bluestone, along with a track record of consistently delivering operational results. Prior to Bluestone, Bale headed up BEA's Northern Europe business activities, as managing director. During his three years at BEA, he established and built a sales-focused company which achieved all targets. Bale grew BEA's European organization substantially, both with regard to personnel and revenues, achieving 100% year-on-year growth. Previously, Bale spearheaded Oracle's Applications Division in the UK and Ireland, which similiarly expanded under his tutelage.

"Steve's appointment and the opening of our first office outside of North America is a milestone for Bluestone and an indicator that we continue to meet our corporate growth targets," said P. Kevin Kilroy, president and CEO of Bluestone. "Steve's wide-ranging experience in the European market and proven ability to boot-strap new operations and grow them to profitable business units, will enable Bluestone to establish a firm footing in this crucial market. In addition, Steve's superb strategic abilities will enable him to play a key role in managing current and future partner relationships and acquisition activities for Bluestone. I expect Steve to be a real asset to our management team."

Commenting on his appointment, Steve Bale added, "Bluestone's entry into the European market is timely as companies in Europe, the Middle East and Africa are rapidly gearing up for e-business. This represents enormous potential for Bluestone, since we are supremely capable of offering fault tolerant, integrated, proven solutions for building scalable Web-facing applications and Web Application Servers, and enabling back-end integration with existing and legacy systems and across company boundaries. I'm looking forward to accelerating Bluestone's momentum in this region, and personally meeting Bluestone's customers and partners."

Bluestone's EMEA office is located at 6th Floor Marble Arch, 55 Bryanston Street, Marble Arch, London, W1H 8AA.

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, Strategic Weather Services, 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 fault tolerant 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 Bluestone XML Suite and Total-e-Business 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.