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Press Releases Thursday, February 26, 2004   
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WEBMETHODS ANNOUNCES RFID STARTER PACK TO ACCELERATE IMPLEMENTATION FOR AGENCIES AND SUPPLIERS

webMethods` RFID Solution Drives Down Cost of Supply Chain Operations

FAIRFAX, Va. - February 25, 2004 - webMethods, Inc. (Nasdaq: WEBM), the industry`s first Web services infrastructure company, today announced the availability of the webMethods RFID Starter Pack, which enables faster implementations for Radio Frequency Identification (RFID) initiatives. webMethods RFID enables companies to seamlessly integrate their RFID data with core ERP applications, warehouse management systems and databases in order to automate their supply chain and achieve increased efficiencies in their business processes. It also includes one week of webMethods` professional services and a pre-built sample business process package to accelerate customers` deployment of their RFID projects.

Companies facing mandates from industry leaders such as, Wal-Mart, the U.S. Department of Defense and the U.S. Food and Drug Administration, have looked at RFID hardware solutions as a first step to understanding and implementing this emerging technology. However, much of the ROI to be derived is integrally dependent on improving efficiencies in current supply chain operations webMethods` comprehensive approach to RFID takes costs out of the supply chain by automating a wide range of shipping, receiving, and inventory processes. Companies can more accurately follow the flow of goods from the plant to the store shelf, and in cases where product tracking is critical, such as product recalls or military operations, save critical time and potentially minimize losses.

"As RFID projects begin to take shape, it is becoming increasingly obvious that organizations need to look at more than just implementing hardware solutions," said Shawn Willett, Principal Analyst, Current Analysis. "For companies who are embarking on RFID projects, integration software will play a critical and strategic role. Integration software will not only help send RFID information to back end systems but will help customers identify and automate business processes, and provide higher levels of visibility than is now possible."

Once a company has its RFID systems running, and information is flowing between shipping, receiving, inventory and purchasing applications, it becomes imperative to have a system in place to monitor, manage and capitalize on this information. Executives need real-time intelligence in order to take proactive steps, drive productivity and enhance revenue opportunities. webMethods` Business Activity Monitoring (BAM) solutions coupled with webMethods` RFID solution extract intelligence from the raw RFID data and all the underlying systems that touch the RFID business process to perform predictive analysis. For example, suppliers and retailers can leverage these real-time analytics capabilities provided by webMethods` BAM solutions to monitor business processes that support strategic business activities such as recall and anti-counterfeit measures.

"webMethods is helping companies capitalize on the dynamic nature of RFID business processes by offering a solution that enables them to quickly and cost-effectively develop an integrated RFID project," said Kareen Renaudin, vice president of Industry Solutions, webMethods, Inc. "Coupling webMethods` BAM solutions with webMethods RFID provides even more value by providing real-time intelligence and visibility into the complete supply chain process."

With webMethods RFID, companies have the advantage of running their RFID business processes on a proven, standards-based integration platform, which ensures scalability, reliability and high performance. webMethods` RFID solution is already fully integrated with the market`s leading warehouse management system provided by webMethods` partner Manhattan Associates, enabling customers to quickly move into production and eliminate additional steps in the integration process.

webMethods also enables companies to feed real-time RFID data to mobile devices in the warehouse, delivering business-critical information, such as advanced shipping notices, financial data from ERP applications and accurate order information. In this way, the value of RFID is being extended to warehouse managers on the floor, giving them unparalleled control and visibility of enterprise data in real-time.

webMethods has opened an RFID demo center at its Fairfax headquarters and will also showcase the live pilot project at industry tradeshows. To view a live demonstration of webMethods` RFID capabilities, please contact RFID@webMethods.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 1,050 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. More information about the company can be found at http://www.webMethods.com.

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webMethods is a registered trademark, and Global Business Visibility is a trademark, of webMethods, Inc. in the USA and certain other countries. All other company and product names are the property of their respective owners.

This press release may contain various remarks about the future expectations, plans and prospects of webMethods that constitute forward-looking statements for purposes of the safe harbor provisions of U.S. securities laws. The actual results of webMethods may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed under the heading "Factors That May Affect Future Operating Results" in the Business section of webMethods` Form 10-K for the year ended March 31, 2003, and in the "Management`s Discussion and Analysis" section of webMethods` Form 10-Q for the quarter ended December 31, 2003, which are on file with the U.S. Securities and Exchange Commission and may be accessed at www.sec.gov or webMethods` investor relations web page at www.webMethods.com/investors/. webMethods disclaims any obligation to update or correct any forward-looking statements made herein due to the occurrence of events after the issuance of this press release.
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