webMethods and OATSystems to Deliver Integrated RFID Solution

Partnership Delivers End-to-End Supply Chain Visibilty

INTEGRATION WORLD 2003 - Orlando, FL. - October 29, 2003 webMethods, Inc. (Nasdaq: WEBM), the industry's first Web services infrastructure company, and OATSystems, provider of high-end transactional systems and high volume RFID solutions, today announced a partnership agreement to bring to market an integrated solution for Radio Frequency Identification (RFID). Together, webMethods and OATSystems will enable customers to leverage RFID technology to derive strategic operational benefits from their automated supply chain operations.

"RFID technology will revolutionize the way products are manufactured, tracked, sold and bought, and enterprise level integration will be a critical component of RFID projects," said Kareen Renaudin, vice president of Industry Solutions, webMethods, Inc. "By partnering with OATSystems, webMethods will be able to deliver an out-of-the-box solution that enables our customers to reduce the time, cost and effort of their RFID projects."

RFID eliminates the line-of-sight requirements of current bar code systems and automatically provides basic, yet critical pieces of information about products, such as the item number and the item location. Integrating basic data points like these with a company's back-end enterprise systems allows them to achieve tremendous new business benefits, including better asset management, more accurate and efficient supply chain execution and speedy payment transactions.

webMethods provides the integration needed to increase the benefits of RFID on an enterprise-wide scale. With the webMethods Integration Platform, companies can connect the OATSystems' RFID application, Senseware, with their core back-end systems to receive the full business benefits and the promise of RFID technology. Senseware tracks all assets and inventory with RFID tags, automates data capture to eliminate manual count, bar code scanning and data entry.

"OATSystems is working with Fortune 500 companies to implement RFID in their business, and the new partnership with webMethods adds to the value that we bring to our customer base," said Karl Waldman, president of OATSystems. "Our customers will now have the ability to incorporate their RFID initiatives on top of an integration infrastructure to take advantage of the benefits of both Senseware and the webMethods Integration Platform."

Current webMethods offerings like Item Synchronization will play an essential role in corporate RFID strategies. Companies must have access to accurate data about items, cases and pallets from their back-office applications before RFID technology can deliver on its value. Therefore, building an integration infrastructure will help companies improve their return on investments from RFID projects by ensuring that product data is synchronized and managed throughout the automated supply chain.

About OATSystems

Founded in 2001, OATSystems, Inc. is the developer of the world's most widely deployed standards-based RFID solutions. The company has played an integral role in developing RFID standards and technologies and has deployed its flagship Senseware platform to help many of the world's largest retail, consumer packaged goods and pharmaceutical companies reap the economic benefits of RFID. Headquartered in Watertown, Mass., OATSystems is a privately held company backed by Matrix Partners
and Greylock. For more information, please visit the company's Web site at
www.oatsystems.com.

About webMethods, Inc.

webMethods (Nasdaq: WEBM) is the industry's first Web services infrastructure company. webMethods' innovative integration, Web services, portal and analytic solutions enable more than 1,000 enterprise customers worldwide to run, measure and optimize their business. Recognized in 2003 as the fastest growing software company in North America by Deloitte, webMethods is headquartered in Fairfax, Va., with offices throughout the U.S., Europe, Asia Pacific and Japan.