IXOS SOFTWARE Commits to Deliver Comprehensive Solutions for Regulatory Compliance.

Business Editors/High-Tech Writers

COPENHAGEN, Denmark--(BUSINESS WIRE)--Nov. 11, 2003

First Solution Addresses Most Stringent Requirements for SEC 17a-4,

NASD Rules 3010/3110 and NYSE Rule 440

IXOS SOFTWARE (NASDAQ: XOSY and TecDAX: XOS), a global leader in Enterprise Content Management (ECM), today unveiled its commitment to deliver a complete set of regulatory compliance solutions that will address the most relevant requirements of leading corporate governance regulations including, Sarbanes-Oxley, Basel II and SEC 17a-4, as well as emerging European standards. Building on its advanced knowledge of compliance, leadership in the document and e-mail management markets, and extensive relationships with Fortune 500 companies, IXOS is poised to deliver solutions that meet the rapidly growing market concerns for compliance while meeting business-critical storage, security and scalability requirements.

The company's initial solution offering, the IXOS e-mail Compliance Solution for SEC 17a-4 is built for the Securities Industry and aimed specifically at dealer brokers. Available immediately, the solution is designed to help companies comply with specific regulatory requirements focused on the use and retention of e-mail. This scalable solution will help businesses properly manage, search and retain e-mails that have real business, legal and compliance implications, while controlling the costs associated with email management. Today's announcement follows IXOS' recent agreements with leading storage companies Hitachi Data Systems and StorageTek, positioning IXOS as a leader in both compliance and ECM solutions.

"Compliance with rules and regulations for the review, retention and retrieval of electronic communications is a must have," explained Hartmut Schaper, CTO of IXOS SOFTWARE AG. "As e-mail continues to grow as a primary business tool, the management of it has vaulted from an IT concern to a board-room discussion. The IXOS solution enables companies to address the most stringent regulatory requirements while decreasing the cost and effort of e-mail management." Estimated by AMR Research to be a $2.5 billion market this year in the US alone, corporate governance and compliance issues continue to rapidly gather momentum, taking on greater magnitude worldwide.

Driving New Solutions for the Securities Industry

The IXOS e-mail Compliance Solution is an integrated ECM solution that will help companies meet securities industry regulations such as SEC 17a-4, NASD Rules 3010/3110 and NYSE Rule 440. The solution enables a structured process to search, sample, review and track e-mail according to compliance policies. Currently available for the Microsoft Exchange environment, a Lotus Notes version will be available in 2004.

At the center of the IXOS e-mail Compliance Solution is the IXOS-eCONserver, a single content repository for e-mail and document management that serves as the common foundation and core of all IXOS' ECM offerings. This scalable production-class server delivers secure document archiving, user authentication and document distribution and can manage millions of documents in a live system. Solutions packages designed for specific compliance issues will plug directly into the IXOS-eCONserver backbone. This modular and elegant approach positions IXOS to rapidly and effectively address a multitude of ECM and compliance solutions to meet evolving market needs. Customers will quickly be in line with business and regulatory requirements by simply adding IXOS solutions packages that seamlessly integrate with the core IXOS repository.

"The technology at the core of IXOS compliance solutions has been independently evaluated to comply with both the letter and spirit of relevant requirements in SEC Rule 17a-4," states a report published jointly by market experts at Kahn Consulting, Inc. and Cohasset Associates.

This announcement of IXOS' first solution to address e-mail compliance and regulatory requirements coincides with the new product release of e-CONserver for Microsoft Exchange version 2, the first e-mail management solution to support Microsoft Exchange 2003.

Ensuring Enterprise-level Archival Security and Inalterability 

The IXOS solution archives all data securely and unalterably for specified periods on optical media or specific storage hardware. It also easily enables companies to discover and retrieve specific messages in case of an audit, as well as dispose of documents in accordance with best practices. Time stamping, indexing and duplicate copies of all e-mail are fully supported and allow for effective generation of reports for review and inspection by regulators. An audit system provides for accountability of record input and changes made to every original and duplicate e-mail. The IXOS solution also incorporates a supervisory module with a powerful and flexible workflow engine that allows firms to readily build highly accurate sampling procedures that are customized to the company's unique business practices and operating structure.

Organizations that practice poor document and records management procedures face devastating risks including litigation, costly and time-consuming discovery and potential liability for lost information or information that cannot be validated as unaltered from its original state. Recent reports from Kahn Consulting, Inc. and Cohasset Associates reveal the cost of discovery to be in excess of $1million and the largest uncontrolled cost in business today.

Proven Gains in Operating Efficiencies

In addition to meeting regulatory compliance requirements, IXOS e-mail management solutions control spiraling e-mail management costs and offer proven, unmatched scalability. With IXOS e-mail Compliance Solution, customers can also achieve key operating efficiencies through:

-- Significant reduction in database size - up to 90%

-- Reduction in number of servers - up to 75%

-- Backup times cut from 24+ hours to less than 2 hours

Known for highly-scalable, enterprise-level solutions that effectively manage high volumes of information, customers requiring large-scale implementaions frequently turn to IXOS. The quality and value of IXOS solutions continues to be validated daily by customers who have mission-critical security, document management and enterprise content needs. With a massive implementation of 65,000 seats of IXOS-eCONserver for Exchange, the US Airforce's Air Mobility Command has realized vastly improved operations, lower cost of ownership, and a robust fail-over and storage strategy.

Please contact your local IXOS sales office for pricing and availability of the IXOS e-mail Compliance Solution for SEC 17a-4.

About IXOS

IXOS SOFTWARE AG is Europe's leading vendor of solutions for Enterprise Content Management (ECM). The IXOS offering ranges from solutions for the efficient management and display of web information, to optimization of business processes, all the way to the secure, long-term archiving of all business documents in a dependable document repository. A global team of highly qualified consultants and worldwide 7x24 hour support complement the wide range of available IXOS solutions. IXOS partnerships with leading international hardware and software vendors, as well as system integrators, guarantee the deployment of innovative technology and comprehensive industry expertise. Its financial stability makes IXOS a stable, long-term partner. Major corporations from a wide variety of industries have already installed over 3000 IXOS installations worldwide - enabling them to reduce their costs and simultaneously enhance their productivity and competitiveness. More than 2 million users around the world already work with ECM solutions from IXOS. Shares of IXOS SOFTWARE AG are traded under the symbol "XOS" in the Prime Standard segment of the Frankfurt Stock Exchange (ISIN: DE0005061501). In the U.S., American Depository Shares (ADS) are traded on NADSAQ under the symbol "XOSY". Fore more information, please see www.ixos.com.

IXOS Software AG and IXOS are registered trademarks of IXOS Software AG. All other names, brands or products may be trademarks or registered trademarks of their respective owners.