Press Releases

Solutions Acquisition of eGrail Delivers Vital WCM Capabilities to FileNET Customers with a Focus on Ease-of-Use and Low Cost of Ownership

COSTA MESA, Calif.--(BUSINESS WIRE)--April 2, 2002 -- FileNET Corp. (Nasdaq:FILE), the leader in Enterprise Content Management (ECM), today announced it has signed a definitive agreement to acquire the core assets of privately held eGrail Inc., a provider of enterprise Web Content Management solutions.

This strategic acquisition enhances FileNET's position as the market-leading ECM supplier through the addition of next-generation Web Content Management products for managing Web sites of the Global 2000. The purchase of eGrail is an all cash transaction valued at approximately $10 million. Effective immediately, the eGrail product line will be made available and supported through FileNET global sales and professional services organizations.

Founded in 1997 and based in Bethesda, Md., eGrail has developed a next-generation Web Content Management system that offers enterprise scalable capabilities that are easy-to-use, empowering authors across the enterprise to contribute to and manage Web site content dynamically. eGrail serves customers in numerous industries including communications, insurance, government, medical and publishing.

"With the addition of the eGrail product line, FileNET is immediately able to offer a sophisticated, yet easy-to-use, Web Content Management solution to support our vision of extended Enterprise Content Management," said Lee Roberts, FileNET Chairman and CEO.

"It has become clear that large global customers are looking to well-established software firms to provide end-to-end ECM solutions. This mandate is driving industry consolidation and favors companies like FileNET.

"With today's announcement, we believe we are the only company that can provide Document Management, Image Management, Web Content Management, Business Process Management and Enterprise Application Integration as part of an extended ECM solution. We also expect to make additional announcements in the coming months that further extend our capabilities across this broad market," added Roberts.

Conference Call

FileNET will host a conference call and simultaneous audio webcast scheduled for Tuesday, April 2nd, 2002 at 11 a.m. EST to discuss the eGrail core asset acquisition. Those interested in participating may call U.S./Canada dial-in number 877/356-0535 or international dial-in number 706/634-7555 10 to 15 minutes prior to the scheduled start time and ask for the FileNET's acquisition of eGrail Conference Call.

Alternatively, participants may attend by webcast at www.filenet.com. A replay of the conference call will be available until midnight, April 9, 2002 at the above listed site or by dialing 800/642-1687 or 706/645-9291. The conference call ID number for all calls is 3624358.

About FileNET

FileNET provides "The Substance Behind eBusiness"(TM) by delivering Enterprise Content Management solutions that improve operational efficiency and leverage information resources.

FileNET's solutions are designed to enable organizations to realize increased productivity, customer satisfaction and profitability by empowering customers, business partners, suppliers and employees to engage in business processes and exchange relevant content.

With headquarters in Costa Mesa, the company markets its innovative solutions in more than 90 countries through its own global sales, professional services and support organizations, as well as via its ValueNET(R) Partner network of resellers, system integrators and application developers.

To put more substance into your eBusiness, visit FileNET's Web site at http://www.filenet.com/ or call 800/FileNET.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements regarding the company's future performance and market dynamics. Those statements and the company's future results of operations are subject to risks and uncertainties. Such risk factors and uncertainties include, but are not limited to, the company's ability to integrate the eGrail product team and complete software development related to the eGrail product platform, customer acceptance of the eGrail product, the timing of, and fluctuations in orders for the company's products, the mix of products and services sold by the company; general conditions in the worldwide economy and the software/technology sector; timely development and introduction of new products to respond to customer demands; announcements of technological innovations, new products or product enhancements by the company or its competitors; the emerging nature of the Enterprise Content Management market; key management changes; changes in joint marketing and development programs; developments relating to patents or other intellectual property rights or disputes; developments in the company's relationships with its customers, distributors and suppliers; and other factors discussed in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2001.

Note to Editors: FileNET, eGrail and ValueNET are registered trademarks of FileNET Corp. and "The Substance Behind eBusiness" is a trademark of FileNET Corp. All other named products mentioned in this release may have been identified by trademarks or registered trademarks of their respective holders.