Convera Restructures Operations to Focus on Enterprise Class Information Infrastructure Software; Projected to Result in Annual Savings of $15 Million.

Business Editors/Hi-Tech Writers

VIENNA, Va.--(BUSINESS WIRE)--Oct. 3, 2001

Convera Corporation (Nasdaq:CNVR), a leading provider of software products that access unstructured information for the enterprise and government markets, today announced that it will restructure its operations to consolidate all operations around the development, marketing, sales and support of its enterprise class information infrastructure software products, Convera RetrievalWare(R) and Convera Screening Room(R).

In addition, Convera will reduce or eliminate operations supporting the digital content security and interactive services business units, including the operations formerly supporting the NBA's interactive services, and close offices in Hillsboro, Oregon and Lafayette, Colorado.

Consequently, approximately 17% of Convera's total workforce will be subject to a reduction in force while certain other employees will be relocated to other Convera offices. As a result of the restructuring, Convera expects to take a one-time restructuring charge of approximately $6 million and realize an annual expense reduction of approximately $15 million.

Convera also announced that it is withdrawing its prior financial guidance for the current fiscal quarter as a result of the deepening economic downturn and the weak outlook other companies in the technology sector are reporting.

Patrick C. Condo, president and CEO of Convera said, "The increasing uncertainty in the economy is affecting our traditional sales cycle and has reduced visibility to the point where we are unable to rely on established models for forecasting revenue. Should visibility improve, we'll update our guidance when we report our FY '02 third quarter results in November."

About Convera

Convera, the company formed when Excalibur Technologies combined with Intel's Interactive Media Services division, is a leading provider of innovative software products that manage multimedia digital content.

Convera's advanced technologies, products, services and solutions empower content owners to extract value from their high-worth digital content--text, images and video--over the Internet, intranets, set top boxes and wireless devices. Convera serves nearly 750 customers in 29 countries from its offices throughout the U.S. and Europe.

For more information, contact Convera at 800/788-7758, via e-mail at [e-mail] or on the Web at www.convera.com.

The following are worldwide trademarks of Convera Corporation or its subsidiary Convera Technologies, Inc.: Convera(TM), RetrievalWare(R), Screening Room(R) and their respective logos.

This release contains comments about Convera's future expectations, performance, plans and prospects as well as assumptions about future events.

The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, business and economic conditions, continued success in technological advances, and the risk that the businesses that were merged to create Convera, the Interactive Media Services Division of Intel Corporation and Excalibur Technologies, Inc., will not be integrated successfully.

Actual results may differ materially from our expectations as the result of these and other important factors relating to Convera's business and product development efforts, which are further described in Convera's and Excalibur's filings with the Securities and Exchange Commission. These filings can be obtained from the SEC's website located at www.sec.gov.

Any forward-looking statements are based on information available to Convera on the date of this release, and Convera assumes no obligation to update such statements.