Bluestone Welcomes a Dozen New ISV Partners to Code Blue Developers Program; No Up-Front Licensing Fees for Bluestone's Industrial-Strength, Standards-Based Application Server Frameworks Allow ISVs to Affordably Deliver High-Performance, High Availability Customer Solutions.

Business Editors/Hi-Tech Writers

PHILADELPHIA--(BUSINESS WIRE)--Jan. 10, 2000

Reaffirming the emergence of Application Server technology as the heart of next-generation software solutions, a dozen new independent software vendors (ISVs) have joined Code Blue, the developers program of Bluestone(R) Software, Inc. (Nasdaq: BLSW), a leading provider of Enterprise Interaction Management software. Code Blue gives Java, Web, and XML application developers no-initial-cost access to Bluestone's industry-leading Application Server frameworks for building e-business and data integration applications. The new Code Blue members include Alphonso Informex Pvt Ltd; BAPA, Inc.; Brickhouse Data Systems, Inc.; Cadnetics, Inc.; ClearLogic, Inc.; Creative Sun, Inc.; Database Consulting Group, Inc.; Eden Technology, I.C.E. Wireless; Kanrad Technology; Nichols, and Orchid Systems, Inc.

The Code Blue program encompasses Sapphire/Web(R), the platform-independent, 100% Pure Java Application Server framework that sets the new standard for enterprise-class e-business; and Bluestone XML Suite(TM), the company's revolutionary Integration Server and toolkit that provides a fundamental platform for building, distributing, and deploying XML applications. Leveraging these technologies, the ISVs can build e-business solutions characterized by such hallmark Bluestone properties as extreme scalability and performance, Customer Facing Fault Tolerance, Internet Quality of Service (IQS(TM)), Hot Versioning(TM), and open standards compliance, including Sun's Java 2 Platform, Enterprise Edition (J2EE).

"Our new partners are building the fundamentals of their businesses on Bluestone software, because they share a passion for delivering premier e-business solutions to their customers, and the fundamental foundation of premier solutions is Application Server technology," said John H. Capobianco, senior vice president of worldwide marketing for Bluestone. "As a leader in Application Server technology, Bluestone designed Code Blue for ISVs that otherwise couldn't afford the technology underpinning that we offer. By empowering these ISVs to build robust, high-performance solutions, we help them succeed and usher in a new era of software built on Bluestone."

ISVs Build New Era on Bluestone's Application Server Foundation

The following provides brief descriptions of Bluestone's new ISV partners and the technologies they are developing:

-- Alphonso Informex Pvt Ltd, an India-based Internet start-up

company, selected Bluestone Sapphire/Web to build and deploy a

Web-based application for rendering composite services for the

exchange of information. Businesses addressed by the exchange

will be as varied as job placement, corporate gifts or real

estate.

-- BAPA, Inc. (www.esupervise.com), an Internet application software

company, joined Bluestone's Code Blue program in order to utilize

Bluestone's Sapphire/Web in building and deploying a Web-based

application that provides monitoring and auditing information for

companies running automatic processes.

-- Brickhouse Data Systems, Inc. (www.brickhouse.com) has

traditionally specialized in customer application development for

Microsoft Windows technology. As the company moves its component

architecture forward into the new millennium, it will depend on

Bluestone's 100% Pure Java Sapphire/Web platform to extend its

products and components, such as iManager, to a Java-based open

environment. iManager is an automated help desk application

designed to facilitate a company's field support needs. It

provides companies with the ability to manage problems/incidents

and software defects reported by end users of software

installations. The new version of iManager is expected to be

released in the first quarter of 2000.

-- Cadnetics, Inc. (www.cadneticsinc.com) is a rapidly growing

software development company specializing in designing

client/server, custom, software solutions. The company joined

Bluestone's Code Blue developer program in order to use

Bluestone's Sapphire/Web Application Server framework and

Bluestone's XML integration engine as the development and

deployment foundation for its Universal Merchant Server. This

e-commerce engine provides merchants with all the tools they need

and the security to establish and maintain a complete Web-based

retail/commercial/distribution presence. Universal Merchant

Server is expected to go live in the third quarter of 2000.

-- ClearLogic, Inc. (www.clearlogic.com) was founded in early 1997

to bring together technologies and markets that will work

hand-in-hand: multimedia, Web, and software. To offer a highly

scaleable and manageable architecture to medium to larger

organizations through Enterprise JavaBean technology, ClearLogic

is basing the third generation of its premier online proofing

system, NetProof(TM), on Bluestone's Sapphire/Web Application

Server platform. Netproof accelerates the revision/approval

process of projects by eliminating time lost to shipping and

printing, and errors resulting from verbal communication. The new

version of NetProof and NetProof Online(TM) (www.netproof.com)

are expected to debut in the first quarter of 2000.

-- Creative Sun, Inc. (www.creativesun.com) offers powerful

Enterprise-class Internet publishing applications. The company

offers Author! Author!(TM) an Application Server product that is

designed for large-scale Web communities, news services, and

publishers. Bundled with Bluestone's Sapphire/Web Application

Server framework as a deployment engine, Author! Author! supports

large volumes of content, multi-user authoring, workflow, and

e-commerce. The application is expected to ship on the Bluestone

platform in February 2000.

-- Database Consulting Group, Inc. (www.dbcg.com), Internet

Applications Integrators, develop solutions that solve today's

most crucial supply chain issues and enable its customers to stay

competitive in the constantly changing Internet economy. Focusing

on U.S. and European markets, the company is using Bluestone's

Sapphire/Web Application Server platform and Bluestone XML Suite

integration engine to build and deploy a transaction portal that

integrates ERP services with sales order and inventory management

systems for remote warehouse and pervasive users. The portal is

expected to be announced in late spring, 2000.

-- Eden Technology, (www.edentechnology.co.uk), a Scotland-based,

Application Service Provider in the business-to-business,

e-commerce market, is using Bluestone's Sapphire/Web to develop

and deploy LinkB2B, a new software product delivered via the

Internet that enables business organizations to achieve

significant cost benefits through electronic trading. For a low

monthly cost, standard and non-standard business documents, such

as purchase orders and invoices, will be able to flow securely

and seamlessly between trading partners. LinkB2B is anticipated

to be available in the last quarter of 2000.

-- ICE Wireless, (www.icewireless.com), a leading provider of

business-to-business, wireless communications, is using

Bluestone's Sapphire/Web architecture for its development of

Recommengine(TM), an exclusive recommendation tool for wireless

service plans that allows customers to input information and

receive unbiased recommendations based on their needs. 6

Recommengine is expected to debut in April, 2000.

-- Kanrad Technology (www.kanrad.com), based in Cupertino,

California, is a software service and consulting company 

providing viable e-commerce solutions to clients worldwide by

helping companies to leverage business-to-business and

business-to-consumer applications. Kanrad is developing the next

generation of its Purchase Tracker, a state-of-the-art,

business-to-business alliance tool, on Sapphire/Web, Bluestone's

100% Pure Java Application Server framework. Purchase Tracker

will integrate the vendor and the enterprise by automating buying

and selling through an online process, thus reducing shared

latency and inventory cycles.

-- Nichols (www.nichols.com), an information technology company

headquartered in Alabama, specializes in information solutions

and services. Using Bluestone's Sapphire/Web Application Server

framework and Bluestone XML Suite integration engine, Nichols is

building a Web-based application that allows school districts and

health departments to access and integrate student and teacher

health records across multiple systems.

-- Orchid Systems, Inc. (www.orchidsys.com) was founded in 1994 to

develop wireless data systems. Today, Orchid wireless systems are

installed around the world with portable terminals and wireless

browsers accessing enterprise applications from the point of

action. Through Bluestone's Code Blue program, the company is

relying on Bluestone's Sapphire/Web for the enhancement of

WebShaper, an Application Server that Web-enables legacy

applications, such as public service and sales management for use

through browsers, pagers and other wireless Internet appliances.

WebShaper is available today.

Developers can register for Bluestone's Code Blue developers program online at http://www.bluestone.com/code-blue/.

About Bluestone Software

Bluestone(R) Software, Inc. is a leading provider of Enterprise Interaction Management software. Companies deploying e-business applications, like 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 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, Total-e-Business, Hot Versioning, and IQS are trademarks of Bluestone Software, Inc. NetProof and NetProof Online are trademarks of ClearLogic, Inc. Author! Author! is a trademark of Creative Sun, Inc. Recommengine is a trademark of I.C.E. Wireless. 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, its industry, or its Code Blue developers 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.