Documentum Reports Record Fourth Quarter Revenue and Year-Over-Year License Revenue Growth of 45 Percent

Record Number of New Customers for Fourth Quarter and 2002

PLEASANTON, Calif. - January 28, 2003 - Documentum, Inc. (NASDAQ: DCTM), the leading provider of enterprise content management (ECM) and extended enterprise collaboration (EEC), today announced financial results for the fourth quarter and fiscal year ended December 31, 2002. Total revenue for the fourth quarter 2002 was a record $66.0 million, representing a 30 percent increase over the same period last year and a 17 percent sequential increase over the third quarter -- exceeding the company`s fourth quarter guidance of $62.5 to $64.5 million. On a non-GAAP basis, diluted earnings per share for the fourth quarter 2002 were a record $0.12, compared to earnings per share of $0.02 for the same period last year. On a GAAP basis, loss per share for the fourth quarter 2002 was $0.03, compared to loss per share of $0.04 for the same period last year, and diluted earnings per share of $0.05 in the third quarter.

On a non-GAAP basis, net income for the fourth quarter 2002 was a record $5.2 million, as compared to net income of $0.8 million reported for the same period last year. On a GAAP basis, net loss for the fourth quarter 2002 was $1.1 million or $0.03 loss per share, compared to a net loss for the same period last year of $1.6 million or $0.04 loss per share and net income of $2.0 million for the third quarter.

In the fourth quarter of 2002, the company recorded a charge of $5.8 million resulting from costs associated with the acquisitions of TrueArc and eRoom as well as a non-cash charge of $1.19 million to capture the depreciation of leasehold improvements for which depreciation expense of $30,000 per month had not been previously recorded.

Revenue for the fiscal year ended December 31, 2002 was a record $226.9 million, a 21 percent increase as compared to $188.0 million for 2001 -- exceeding the company`s full year 2002 guidance for total revenue of $223.5 to $225.5 million. License revenue for 2002 was $117.1 million, a 35 percent increase over 2001. On a non-GAAP basis, net income for 2002 was $6.0 million, as compared to net loss of $29.4 million for the prior year. Diluted earnings per share for 2002 was $0.14, as compared to a loss per share of $0.78 for 2001. On a GAAP basis, net loss for 2002 was $1.2 million or $0.03 loss per share, compared to a net loss for the prior year of $38.3 million.

A reconciliation of all non-GAAP and GAAP numbers is attached at the end of this news release.

"Documentum`s strong performance reflects the tremendous efforts and focus on the part of all Documentum employees," said Dave DeWalt, president and chief executive officer of Documentum. "We continued to build momentum throughout 2002, keeping a laser focus on improving operation efficiencies and driving top line revenue growth. As Documentum continues to expand its product offerings, diversify its sales model, and expand its global presence, we continue to gain market share, as evidenced by our strong 2002 fourth quarter and fiscal year results."

Fourth Quarter and Fiscal Year 2002 Highlights
• Fourth quarter represents all-time record in terms of total revenue, non-GAAP net income and earnings per share, new customers, and number of transactions
• Fourth quarter represents fifth consecutive quarter of revenue growth
• Fourth quarter represents fifth consecutive quarter exceeding Wall Street expectations
• Exceeded fourth quarter guidance provided for recently acquired Documentum eRoom product, booking $4.2 million in eRoom revenue within 21 days
• Full year 2002 year-over-year license revenue growth of 35 percent
• Full year 2002 year-over-year total revenue growth of 21 percent
• Completed the acquisition of three companies - Boxcar, TrueArc and eRoom - delivering fully integrated products within 90 days of closing each acquisition
• Full year 2002 year-over-year growth in EMEA revenue of 45 percent
• Full year 2002 year-over-year growth in government channel revenue of 176 percent
• Added 21 new products, expanding revenue stream and increasing cross-sell opportunities
• Continued strong execution across all regions, channels and industry segments and with all

Fourth Quarter and Fiscal Year 2002 Results Conference Call and Webcast
Investors can listen to a teleconference of Documentum`s Fourth Quarter and Fiscal Year 2002 financial results on Tuesday, January 28, 2003, at 2:00 p.m. PST (5:00 p.m. EST) by calling 1-719-457-2617 (pass code 754620). The accompanying slide presentation (no audio) will be webcast simultaneous with the live teleconference at http://documentumevents.webex.com or may be downloaded anytime from our investor relations web site at http://www.documentum.com/news_events/investor.

The dial-in number for the audio-only replay is 719-457-0820 (pass code 754620). A replay of the webcast may be found on the company`s web site at -- www.documentum.com. A replay of the audio-only and webcast will be available for a limited time, beginning at approximately 6:00 p.m. PST on January 28.

About Documentum
Documentum is the industry`s leading enterprise content management provider, automating the production, exchange and personalization of all types of content, making it easier for the Global 2000 to gain competitive advantage by connecting employees, business partners and customers, worldwide. Built on an Internet-scale, XML-enabled and standards-compliant platform, Documentum products manage Web content, power portals, enable collaborative commerce, and solve regulatory content challenges. Over 300 partners across all major industries, including high tech, pharmaceutical, healthcare, consulting services, government, manufacturing, financial services, automotive, retail, and consumer goods, build and implement specialized applications using Documentum`s content management infrastructure.

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