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Bluestone Software Acquires Arjuna Solutions to Deliver the Only Commercial Pure JavaTM Transaction Service for Wireless and Internet Commerce; Merged Technology Enables Bluestone to Leapfrog Industry with the First Commercial Pure Java Internet Operating.

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Pioneering the next-generation model of distributed transactioning systems for wireless and Internet applications, Bluestone(R) Software, Inc. (NASDAQ: BLSW), a leader in business-to-Web and wireless technologies, today announced that it has acquired Arjuna Solutions Limited of Newcastle, England for $13.23 million. Arjuna is one of the world's leading centers of expertise in standards-based, distributed transactional and workflow software, and the developers of the industry's first and only commercial transactioning system developed entirely with Java(TM) technology and based on Sun Microsystems' Java Transaction Service (JTS).

The acquisition of Arjuna bolsters Bluestone's Internet Operating Environment(TM) with an embedded, high-performance, pure Java Transaction Service and gives the industry its first commercial, entirely Java technology based, alternative to the currently available, mostly non-Java based, transactioning systems on the market. In doing so, Bluestone is establishing the new standard for easy-to-integrate, easy-to-maintain, and easy-to-scale, distributed transactioning technology, as well as delivering financial service-grade integrity to meet the high volume demands of the Internet and wireless worlds.

"By acquiring Arjuna, we become the only J2EE(TM)/EJB(TM) vendor with a pure Java transactioning system and one of only a few that has transactioning at all--that means we're effectively leapfrogging the entire Application Server industry by delivering the only commercial Java Transaction Service developed entirely with Java technology that is already tightly integrated with our e-business platform," said P. Kevin Kilroy, president and CEO for Bluestone Software. "Our customers are increasingly aggressive in their embrace of business-critical wireless applications, and they are seeking transactional security and performance improvements that lie at the heart of Internet operating environments. With Arjuna's brain trust, Bluestone gains the resources of the industry's preeminent force in the field of distributed transactional and workflow software and brings those resources to bear on our customers' most pressing e-business needs."

Transactioning technology is essential to ensuring the absolute completion and accuracy of business processes when a transaction is performed. Most traditionally associated with financial and telecommunications applications, a transaction engine is now increasingly required for virtually all e-business services to ensure that a company's multiple systems, from order management to shipping to billing, are accurately updated as a single complete transaction, and that the customer is readily informed of the transaction status. "As our customers look toward the next generation of our Internet Operating Environment, they are seeking a new model of distributed transactioning that can meet the high volume demands of Internet e-commerce, and that model will inevitably be Java technology based," added Kilroy.

With the acquisition, Bluestone gains JTSArjuna, the industry's first and only commercial implementation of Sun's Java Transaction Service based entirely on Java technology. A Java Transaction Service is required for J2EE (Java 2 Platform, Enterprise Edition(TM)) and EJB (Enterprise JavaBeans(TM)) specifications, and vital to the successful operation of sophisticated applications, like e-business transactioning. The Arjuna technology epitomizes standards compliance and vendor neutrality by working with virtually any object request broker, Internet protocol, J2EE or EJB platform, operating system, Java Virtual Machine, and compiler. JTSArjuna is also recognized as one of only a small number of commercial transactioning systems approved by the Object Management Group (OMG), an international software consortium responsible for establishing distributed computing specifications. Bluestone plans to embed JTSArjuna into its Total-e-Business(TM) platform, as well as offer it as a standalone product, in the fall of this year.

"We will also license this technology to third party ISVs and systems integrators to expand access to transactioning systems for Internet and wireless applications," added Kilroy. "Together, Bluestone and Arjuna enjoy tremendous synergies that stand to benefit the entire Internet and wireless industry."

According to Sun Microsystems' Gina Centoni, director, Java Platform Product Marketing, "Bluestone was an early J2EE licensee and has always been an innovator in Application Server technology. We are pleased that Bluestone made this important investment in a commercial Java Transaction Service, a core component of our EJB and J2EE specifications. Sun expects to work closely with Bluestone through the Java Community Process in furthering the use of transactions in distributed Web and wireless technologies."

Driving a New Model of Transactioning for the Internet

Initially launched as a think tank at the University of Newcastle, and later funded by Hewlett-Packard, IBM, Marconi, and Nortel, Arjuna researched and developed the first, world-class, distributed object systems for transactioning and workflow in 1989. Its first commercially-available object transactioning system comprised over 30 man-years of development and debuted in early 1997, followed by the Java-based system in the first half of 1998. Arjuna became an independent software company in 1998, operating out of Newcastle and London. The highly reputed core team of post-doctoral technologists has worked together for ten years and has issued over 100 technical publications on the topic of distributed transactioning systems.

Explained Steve Caughey, managing director at Arjuna Solutions, "The high-volume demands of Internet and wireless applications require a new generation of transaction service that improves upon the non-Java technology based transaction monitors that currently dominate legacy services. As part of Bluestone, we bring a new model of transactioning to life by uniting our industrial-strength Java Transaction Service with Bluestone's pure Java Internet Operating Environment. Because it is Java technology based, we can deliver a next-generation Internet platform that is easier to integrate, maintain and scale to growing e-business requirements."

In the traditional transactioning world in which companies are managing transactions for thousands of client workstations or applications, a front-end, non-Java based transaction monitor essentially manages two processes: one that handles high volume concurrent access to the transactioning system, and the other that provides transactional integrity. These processes are generally not fully integrated with other corporate systems, and therefore, are resource-intensive to operate and maintain.

In the new transactioning environment in which companies are managing transactions for millions of Internet users, an embeddable, Java Application Server replaces the traditional transaction monitor. Bluestone believes that Application Server technology based entirely on Java architecture is better suited for the new world of transactioning, because unlike front-end transaction monitors, Java technology based Application Servers are tuned to the protocols of the Internet and can embed distributed transaction service within a single architecture, running on a single Java virtual machine, to ensure the highest level of transactional integrity and performance for multiple users and processes.

A transactioning system based entirely on Java technology offers a number of advantages. First, by virtue of Java's inherent platform independence, it provides businesses with a platform that easily integrates with back-end office systems and databases, while also providing compatibility with systems from other companies, no matter what hardware platform or operating system is used--this is essential to efficient business-to-business (B2B) and business-to-consumer (B2C) interaction. Beyond traditional platforms, databases and browsers, Java technology and XML based systems are growing in importance for the new wireless and mobile Internet interfaces by being easy to use as a basis of communication in the diverse device marketplace. Lastly, Java technology based systems are dramatically improving programmer productivity and reducing opportunities for error, thereby hastening time-to-market for the development and upgrade of e-business platforms.

About Bluestone Software

Bluestone(R) Software, Inc., provider of Enterprise Interaction Management software, is a leader in business-to-Web and wireless technologies. Companies deploying e-business applications, like Avnet, CDNow,, MCI WorldCom, Planalytics, Reliance National, and Time Inc., rely on Bluestone's Total-e-Business(TM) platform, to provide comprehensive e-business platforms, Internet-class infrastructures, and robust integration services that e-business success demands. Bluestone is headquartered at 300 Stevens Drive, Philadelphia, Pennsylvania, 19113-1597. For more information, please call 888-Bluestone or 610-915-5000, email, or visit

Editor's Note: Artwork depicting "Bluestone's New Model for Transactioning for the Internet" is available from Business Wire or directly from Bluestone's press relations.

Bluestone is a registered trademark, and Internet Operating Environment and Total-e-Business are trademarks of Bluestone Software, Inc. Sun; Sun Microsystems; the Sun logo; Java; Enterprise JavaBeans; EJB; Java 2 Platform, Enterprise Edition; and J2EE are trademarks or registered trademarks of Sun Microsystems, Inc., in the United States and other countries. All other names, brands or products may be trademarks or registered trademarks of their respective owners.

Certain statements in this press release constitute forward-looking statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements involve known and unknown risks, uncertainties and other factors, including those contained in Bluestone's publicly filed reports with the Securities and Exchange Commission, which may cause Bluestone's actual results, performance, or achievements or those of its customers or its industry to be materially different from the future results, performance or achievements expressed or implied by these forward looking statements. Specifically, the Company's beliefs with respect to the business opportunities presented by e-business and the Company's ability to profitably market and deploy its product solutions may prove to be inaccurate. In light of the significant uncertainties inherent in these forward looking statements, the information in this press release should not be considered a representation by the Company or any other person that Bluestone's objectives and plans will be achieved.

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Publication:Business Wire
Geographic Code:1USA
Date:Jul 10, 2000
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