Cisco Selects webMethods' B2B Integration Solution to Streamline Internet Commerce.

Business/Technology Editors

FAIRFAX, Va.--(BUSINESS WIRE)--Feb. 26, 2001

AT&T, Ariba Customers and Other Top Trading Partners to

Use Integration Platform to Streamline the Purchasing

Process and Enable Real-Time Transactions

webMethods, Inc. (NASDAQ: WEBM), the leading provider of business-to-business integration (B2Bi) solutions, today announced that Cisco Systems Inc., the world-wide leader in networking for the Internet, has selected webMethods' technology as the business integration platform for enabling the real-time exchange of inventory and product request information with AT&T, Ariba(R) customers and other top trading partners. webMethods will provide a technology platform for Cisco to process cXML and RosettaNet transactions.

"Integrating our business processes using webMethods' solutions will enable Cisco to effectively and rapidly connect with the business systems of our partners and customers," says Peter Solvik, Senior Vice President and CIO of Cisco. "This solution allows us to provide trading partners such as AT&T and customers on the Ariba Commerce Services Network with a more advanced level of service through an automated procurement process."

The successful deployment of webMethods' B2Bi solution and the integration with AT&T marks the completion of the first phase of Cisco's project. As part of the solution, webMethods has implemented RosettaNet PIPs for processing purchase order submissions and order status. This process allows AT&T to benefit from real-time purchasing and instant product pricing from Cisco. The fully automated, secure and real-time view of transactions enables both Cisco and AT&T to quickly track all steps of the order process and reduce inefficiencies throughout the entire supply chain.

webMethods also provides Cisco with a platform for connecting to the Ariba Commerce Services Network. It allows Cisco to integrate its front-end web-based system with its customers' Ariba procurement systems, resulting in real-time cXML based business document exchange with its customers.

"The webMethods and Cisco implementation is another example of how high-technology leaders are building stronger e-business processes using RosettaNet standards, strengthening their trading partner relationships and benefiting from operational efficiencies including reduced inventory, improved time to market and enhanced productivity," said Jennifer Hamilton, CEO of RosettaNet.

As a RosettaNet partner, webMethods has long recognized the potential of RosettaNet's e-business standards and its ability to improve core processes associated with the information technology supply chain. Specifically, RosettaNet focuses on streamlining the flow of critical information between trading partners by defining an e-business framework for products, partners and business transactions. webMethods has completed more implementations than any other RosettaNet Solutions Partner. To date, webMethods has worked with several leading companies including Avnet, Converge, Compaq, eConnections, Dell, Hewlett Packard, Micron Technology, NEC Technologies, SAP Labs, SYNNEX Information Technologies, VEBA Electronics Group and Viacore, Inc.

"As the first solution provider to join RosettaNet, webMethods has built a foundation of success by completing implementations for 60% of the RosettaNet market," says Kim Trudel Vice President, Industry Solutions for webMethods, Inc. "Cisco's decision to work with both webMethods and RosettaNet supports their position as an industry leader and also validates webMethods' reputation as the leading provider of RosettaNet-based business integration solutions."

About webMethods, Inc.

webMethods, Inc. (Nasdaq: WEBM) is the leading provider of software solutions for business-to-business integration (B2Bi). As the only company providing seamless B2Bi across the Internet and throughout the extended enterprise, webMethods provides Global 2000 companies and B2B marketplaces with a complete, end-to-end solution for integrating customers, suppliers and partners into real-time B2B trading networks, while also increasing internal operational efficiencies. The webMethods product family allows companies to create new revenue opportunities, strengthen relationships with customers, substantially reduce supply chain inefficiencies and streamline internal business processes.

Founded in 1996, webMethods is based in Fairfax, Va., with offices across the U.S., Europe and Asia Pacific. With an emphasis on key vertical markets such as chemicals, financial services, high-tech manufacturing and telecommunications, webMethods has more than 550 customers worldwide--from Global 2000 leaders such as Citibank, Dell, Eastman Chemical Company, Grainger, Motorola and Starbucks to major B2B exchanges like ForestExpress, eHITEX/Converge and PetroCosm. webMethods' strategic partners include Ariba, Commerce One, Deloitte Consulting, EDS, i2 Technologies, J.D. Edwards, KPMG, Microsoft, Oracle Corp., SAP AG and Siebel. More information about the company can be found at www.webMethods.com.

webMethods and webMethods B2B are trademarks of webMethods, Inc. All other company and product names are property of their respective owners.

This press release contains various remarks about the future expectations, plans and prospects of webMethods that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. The actual results of webMethods may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of webMethods' recent Form 10-Q for the quarter ended September 30, 2000, as amended, which is on file with the Securities and Exchange Commission.