Ariba Settles Patent Infringement Litigation; Resolution Means Ariba C

    Business Editors/High-Tech Writers

    SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 14, 2005--Ariba(R), Inc. (Nasdaq:ARBA), the leading Spend Management solutions provider, today announced that it has reached a settlement with ePlus, Inc. in connection with the companies' recent patent infringement litigation. Ariba has scheduled a conference call for 7:30 a.m. PT/10:30 a.m. ET today to discuss both the settlement and the completion of its accounting for its recent transactions with Softbank.
    Under terms of the settlement, Ariba will pay to ePlus an aggregate of $37.0 million during the quarter ending March 31, 2005. The litigation, which has been pending in a federal court in Virginia, will be dismissed in its entirety, and the companies have agreed to a mutual release of claims, including claims for damages for past infringement. In addition, Ariba and ePlus have entered into a broad cross-license of their respective patent portfolios, which will ensure that Ariba's customers and partners will be unaffected by ePlus's infringement claims against Ariba.
    "I'm glad that we were able to quickly reach an agreement in order to keep this litigation from affecting our customers and partners," said Bob Calderoni, Chairman & CEO, Ariba. "We continue to believe that the jury's findings were erroneous, but because of the time and cost of the appeals process and the associated distraction to our business, we believe that pursuing that course would not have been in the best interests of our customers, partners, investors, or employees. We look forward to putting this case behind us and to reaffirming Ariba's commitment to delivering the leading spend management solutions to the market."
    On Monday, February 7, Ariba was found liable by a jury in the United States District Court for the Eastern District of Virginia for infringing three U.S. patents held by ePlus. At that time, Ariba announced its intention to provide its customers with software updates designed to avoid the alleged infringement. Because of the settlement, such software updates will not be necessary.
    ePlus had originally claimed royalty damages of $76.0 million to $98.0 million, and the trial judge had the discretion to enhance any actual damages award by up to three times. In addition, Ariba was subject to a potential injunction against future infringement, which could potentially have diminished its ability to provide certain elements of its spend management solutions to its customers.

    Conference Call Information

    Ariba will host an investor conference call today, February 14 at 7:30 a.m. PT/10:30 a.m. ET to discuss both the settlement and the completion of Ariba's accounting for its recent transactions with Softbank. Presentation materials will be available for download in the investor relations section of the Ariba website at www.ariba.com.

    To participate in the call via telephone:

Dial-in numbers: US/Canada Dial-In Number: 877-375-2162 International/Local Dial-In Number: 973-582-2734

    Please dial in ten minutes in advance to facilitate an on-time start.

    To listen to the call via the Internet:

    Please visit the investor relations section of our website at www.ariba.com or log in at www.vcall.com.

    To listen to a replay of the call:

    A replay of the conference call will be available on February 14 shortly following the conclusion of the live call. The replay will be available until February 21, 2005.

Replay numbers: US/Canada Dial-In Number: 877-519-4471 International/Local Dial-In Number: 973-341-3080 Conference ID: 5717881

    About Ariba, Inc.

    Ariba, Inc. is the leading provider of Spend Management solutions to help companies realize rapid and sustainable bottom line results. Successful companies around the world in every industry use Ariba Spend Management software and services. Ariba can be contacted in the U.S. at 650-390-1000 or at www.ariba.com.

    Copyright (C) 1996 - 2005 Ariba, Inc.

    Ariba and the Ariba logo are registered trademarks of Ariba, Inc. Ariba Spend Management, Ariba Spend Management. Find it. Get it. Keep it., Ariba. This is Spend Management, Ariba Solutions Delivery, Ariba Analysis, Ariba Buyer, Ariba Category Management, Ariba Category Procurement, Ariba Contract Compliance, Ariba Contracts, Ariba Contract Management, Ariba Contract Workbench, Ariba Data Enrichment, Ariba eForms, Ariba Sourcing, Ariba Invoice, Ariba Travel & Expense, Ariba Workforce, Ariba Supplier Network, Ariba Supplier Performance Management, Ariba PunchOut, Ariba QuickSource, PO-Flip, Ariba Settlement and Ariba Spend Management Knowledge Base are trademarks or service marks of Ariba, Inc. Ariba Proprietary and Confidential. All rights reserved. Patents pending. All other trademarks are property of their respective owners.

    Ariba Safe Harbor

    Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba's expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba's operating and financial results to differ materially from its current expectations include, but are not limited to: delays in development or shipment of new versions of Ariba's products and services; lack of market acceptance of Ariba's existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the ability to attract and retain qualified employees; difficulties in assimilating acquired companies; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions; inability to control costs; changes in the company's pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. For example, Ariba recently settled patent infringement filed against it by ePlus, Inc. for $37.0 million and incurred significant related legal expenses. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-K filed December 14, 2004.

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CONTACT: Ariba John Ederer, 650-390-1617 (Investor) Kevin Brooks, 650-390-1988 (Media) PRrequest@ariba.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: SOFTWARE CLASS ACTION LAWSUITS CONFERENCE CALLS SOURCE: Ariba

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