IXOS Signs Contract for Management Buy-Out Of Its Leipzig Subsidiary; The Spin-Off is a Component of the Announced IXOS Restructuring Plan.

Business and Technology Editors

MUNICH/GRASBRUNN, Germany--(BUSINESS WIRE)--Aug. 30, 2000

The Leipzig business, under the name forcont business

technology gmbh, will continue close ties with IXOS

IXOS SOFTWARE AG, a leading provider of solutions for the management of eBusiness documents in inter-enterprise system environments, today announced the successful achievement of the first milestone of the IXOS restructuring program. IXOS signed a contract that seals a management buy-out of its Leipzig subsidiary, IXOS Anwendungs-Software GmbH.

Retrospective to July 1, 2000, two managers of the subsidiary will purchase complete ownership of the Leipzig business. Matthias Kunisch and Christa Gaudlitz will hold together a 100% stake and operate the new company as owning directors. This transaction involves the transfer of 47 existing employees.

"From the very beginning, the Leipzig subsidiary was organized as an independent unit," explained the new CEO of IXOS, Robert Hoog. "The company-wide restructuring plan would have called for the disbandment of the Leipzig organization in its current form for integration into the German sales region or into the headquarters. We are pleased to have found a solution in the form of a management buy-out that allows the Leipzig organization to remain intact as a motivated, independent unit. At the same time, our cooperation will continue in the areas of sales, support and development," continued Hoog.

This spin-off of the Leipzig subsidiary is a component of the IXOS restructuring program announced in July 2000 and contributes approximately EUR 3.0 million to the total cost reductions of EUR 20.0 million planned in fiscal year 2000/2001. The management buy-out will be immediately effective upon approval of the IXOS Supervisory Board, whose next regular meeting is scheduled for September 14, 2000.

"With the management buy-out, we realize an important milestone even earlier than planned," commented Robert Hoog. "I am confident that we will have implemented all of the restructuring measures by the end of September and that we will see the positive effects as soon as in the first quarter." The CEO of IXOS regards a quick implementation of the restructuring program as key to profitable growth.

Both companies will cultivate a sales and technology partnership going forward. forcont will continue to market and sell IXOS archiving solutions in the German market. forcont will also serve the customers of the former IXOS Anwendungs-Software GmbH and support IXOS product installations. Furthermore, the companies will continue to work together on joint development projects of various product components.

IXOS Anwendungs-Software GmbH Leipzig was founded in May 1990 as a subsidiary of IXOS SOFTWARE AG. From the outset, the goal was to support independent and entrepreneurial operations in the heart of the former East Germany to locally serve customers in eastern and central Germany. Over the last 10 years, the Company has become a leading service provider for archiving solutions in this region. More than 30 regional customers primarily in the industry sectors of health services, utilities and real estate are supported from Leipzig and an additional office in Berlin. In fiscal year 1999/2000, IXOS Anwendungs-Software GmbH Leipzig generated EUR 3.7 million in revenues.

Matthias Kunisch, Managing Director of the new forcont business technology gmbh, sees the management buy-out as a chance to rapidly expand its range of service offerings and to leverage the business potential. "We are well-positioned in eastern Germany as an IXOS reseller partner and expect strong growth potential through an enhanced presence in Germany. With our motivated and talented sales, support and development team we will continue to grow profitably and rapidly expand our business - including Internet-based document management projects."

About IXOS

IXOS is a worldwide leading provider of solutions for the management of eBusiness documents in inter-enterprise system environments. The IXOS product portfolio is based on Internet technologies such as Java and XML. IXOS products ensure companies a seamless integration of eBusiness documents in business processes and allow customers the secure archiving of eBusiness Documents and their dynamic management. The highly scalable product line, IXOS-ARCHIVE, digitalizes, archives and manages large document and data volumes enterprise-wide. The internet document portal, IXOS-eCON, is a leading-edge solution for the management of dynamic business documents, which continuously change in inter-enterprise business processes. IXOS-ExchangeARCHIVE enables efficient management of eBusiness Documents and mailboxes for the Microsoft Exchange platform. To complement the product portfolio, IXOS offers an extensive set of services including 24x7 technical support and a global team of highly qualified consultants.

IXOS shares are listed on the Neuer Markt segment of the Frankfurt Stock Exchange and trade under the symbol "XOS". IXOS's American Depositary Shares (ADSs) trade on the NASDAQ National Market under the symbol "XOSY".

IXOS(R) is a registered trademark and IXOS-ARCHIVE(TM) is a trademark of the Company. Trade names and trademarks of other companies mentioned herein are the property of their respective owners.