Versata Expands System for Automating E-Business Transactions Unique Rules-Based Approach Solves Commerce Change Management Issues.

Business Editors/High Tech Writers

OAKLAND, Calif.--(BUSINESS WIRE)--May 22, 2000

Versata, Inc. (Nasdaq:VATA) today announced the expansion of the Versata E-Business Automation System(TM), software that automates the transactions and complex business processes that power today's e-business applications. For unmatched business flexibility, the Versata System delivers transaction automation through a unique rules-based approach required for complex commerce changes found in B2B e-commerce sites and digital marketplaces. With this release, the Versata System adds broadened platform support for both EJB and CORBA, a new XML repository, integration adapters for key elements of B2B commerce sites like XML and application integration, and support for dynamic, offline transactions. The EJB edition is available now in limited release and both the EJB and CORBA editions will become generally available in the next 30 days.

With today's announcement, Versata also introduces a joint technical and marketing relationship with Active Software, a Web integration provider, to deliver an integrated approach for transaction automation with back-office applications. Finally, Versata is steadily expanding its presence in the e-commerce exchange market among its new customers, more than 20 e-marketplaces or trading exchanges are now automating transactions and business logic with Versata.

"Delivering on the critical requirements of commerce change management is more important than ever with this next generation of e-business applications. Companies can't afford the staffing and maintenance issues around manual approaches to keeping applications current. This is key especially in the business-to-business marketplace where the site is continuously deployed and updated," said Mike DeVries, Vice President of Marketing and Business Development at Versata.

What's New: The Versata E-Business Automation System

The Versata E-Business Automation System allows customers to easily manage the change requirements in complex, transactional business processes found in e-business commerce applications like dealer supply chains and digital marketplaces. With this release, Versata adds to its flagship rules-based development and deployment environment by:

-- Expanding the Versata System to support both EJB and CORBA

application server environments. The first EJB-Edition

includes IBM's WebSphere Application Server, Advanced Edition

delivering on a strategic, cross OEM relationship forged with

IBM last year.

-- Enhancing the broader use and interchange of business rules

across large commerce sites through a new XML repository,

-- Introducing the new Versata Presentation and Design Adapters

as part of its core system to more seamlessly operate with

other key elements found in a B2B commerce site such as

content delivery systems, modeling environments, XML and

application integration. The first of these will be

integration with Active Software and Rational Rose, and

-- Adding to the performance of B2B offline transactions with new

dynamic rules.

Quickly Building Momentum as an Exchange Solution

With more than 20 e-commerce exchange customers to its name including, Netfreight.com, ITT, Xpede, First Union Bank, Groupama, Twin Modal and ePMI.com, Versata plans to become the standard for e-business transaction automation. Already, more than 500 customers and 200 partners around the globe rely on the Versata System to build and manage their businesses on the Web. Complex, transaction-based, business-to-business sites built using the Versata System include electronic marketplaces, on-line asset management sites, private channel portals, demand-chain automation sites, customers service on-line and employees self-service systems.

"We were behind on our launch schedule, and Versata's rules-based approach slashed our development and deployment time dramatically, ultimately helping us meet our original target date," said Dolf Starreveld, Netfreight's Vice President and Chief Technology Officer. A business-to-business e-marketplace for the transportation business, Netfreight connects the domestic trucking industry with domestic shippers. "We went from never having heard of Versata to beta in four weeks and made our first business launch of the production system in eight to ten weeks from ground zero."

Why E-Businesses Need the Versata Solution

Industry analysts such as Forrester Research predict that skyrocketing revenues will pass through B2B exchanges and digital marketplaces in the next few years. This will depend upon the successful exchange of huge transaction volumes through multiple, interactive supply and distribution chains, and will require the expedient deployment and frequent updating of Web applications. Moreover, companies doing business on the Web are quickly finding that some "brick and mortar" features carry over to success on the Internet. Emerging B2B and e-Marketplace enterprises must address both brand and customer satisfaction, as well as, incorporate flexibility and efficiency in changing applications to suit customer demand.

"There's about to be a crisis in e-commerce that no one is talking about yet," said Vernon Keenan, President, Keenan Vision. "There simply aren't enough programmers to build the applications required, and even if there were, manually modifying the applications will be woefully inadequate to handle the terrific pace of change in e-business. Versata has astutely inserted its e-commerce software at a key juncture, that of transactional exchange, and delivers a solution that dissolves the bottleneck caused by traditional programming."

About Versata E-Business Automation System

Versata automates the transactions that power complex, e-business applications through its unique rules-based approach. The Versata E-Business Automation System is a complete, rules-based solution that enables companies to easily create, deploy and change transaction-based, complex B2B web applications.

The Versata E-Business Automation System consists of: the Versata Logic Server(TM), which hosts the business rules and logic that automate transactions for e-business; the Versata Studio(TM), which defines applications, user interfaces and automates business rules; and the Versata Connectors(TM), which connects e-business application data sources and legacy systems. New to the Versata System this quarter are the Versata Presentation Server and Adapters, which will extend logic to any interface or presentation client in the form of dynamic HTML, Java, XML, JSP or other 3rd party interfaces; and the Versata Design Adapters, which allow integration with modeling source code controls and content management tools streamlining the design and development environment.

About Versata

Versata provides software and services that enable customers to automate their e-business transactions. Powered by unique rules-based technology, the Versata E-Business Automation System significantly reduces the time needed to develop and evolve e-business applications, as business needs change.

Innovative Fortune 1000 and corporate customers such as MCI, Sanwa Bank, Union Bank of California, ITT Fluid Technologies, Hilton Hotels, JP Morgan and United Defense as well as new Internet exchanges, including yet2.com, NetFreight.com, e-BondTrade.com, uWork.com and FirstSource.com, have all benefited from the Versata solution.

Incorporated in 1995, and publicly-traded, Versata (Nasdaq:VATA) is headquartered in Oakland, California with offices throughout the United States and Europe and in Hong Kong. For more information, please contact Versata at www.versata.com, or call 800/984-7638 or email us at [e-mail].

Versata has filed for several trademarks, including the Versata E-Business Automation System(TM), the Versata Logic Server (TM), the Versata Studio (TM), and the Versata Connector (TM), as well as the Versata logo. All other company and product names mentioned are property of the respective holders.

This release may contain forward-looking statements based on Versata's current expectations. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include the widespread market acceptance of the E-Business Automation System and related service offerings, Versata's ability to expand or grow the service offerings that compliment its E-Business Automation System, its ability to compete in the Internet infrastructure software market, responsiveness to technological and industry changes, loss of a major customer, ability to maintain and expand relationships with systems integrators and third-party distributors and the acceptance of commerce over the Internet by consumers and businesses. These factors, as well as other factors that could cause actual results to differ materially, are discussed in more detail in Versata's filings with the Securities and Exchange Commission, including its recent filing on Form S-1 and Form 10-Q for the quarter ending March 31,2000.

NOTE TO EDITORS: Camera-ready artwork of the Versata logo can be obtained on the Versata media relations Web site at http://www.versata.com. Copies of previous Versata press releases and additional corporate and product information are also available on the Web site www.versata.com.