webMethods expands its India Development Center

Growing Presence Within the Indian Market Designed to Facilitate Faster Product Rollouts and More Comprehensive Customer Support

FAIRFAX, Va., Aug. 24, 2006 -- webMethods, Inc. (Nasdaq: WEBM), a leading business integration and optimization software company, today announced the opening of its expanded India Development Center (IDC) in Bangalore, India. Since launching the IDC in 2004, webMethods has grown its presence in India as a core component of its strategy to accelerate and expand product development in support of the company's award-winning product suite, webMethods Fabric(TM). In addition, the IDC also serves as an important component of webMethods' "follow-the-sun" service model, which distributes customer service requests across multiple global facilities to improve the speed in which these requests are met.

"By serving as a 'center of excellence' for a number of development disciplines, the IDC has enabled us to further enhance the efficiency and quality of our development efforts. We're delighted by the opportunity to further expand our presence with the opening of a new IDC facility," said Kristin Muhlner, executive vice president, Product Development, webMethods, Inc. "Having developed a significant competency with our core technology, the IDC is playing an important role in our next major release, which will enable further advances in end-user productivity through even tighter integration of service-oriented architecture with business process management. The IDC has also proven critical to our efforts to deliver seamless customer service on a 24 by 7 basis."

webMethods first initiated development in India two years ago with the company's in-country workforce having grown considerably over the subsequent time period. With these increased economies-of-scale, webMethods has been able to reduce research & development (R & D) costs despite total R & D headcount remaining constant. The new IDC facility will allow webMethods to further expand this workforce.

The IDC also supports the operations of webMethods Global Services with Bangalore-based consultants helping to meet customer requirements throughout India and across the broader Asia-Pacific region. In addition, these consultants work closely with many of webMethods' partners that are based in the region, helping to facilitate the mixed delivery models -- on-site/off- site development -- being employed by corporations around the world.

"Our investments in India to date have produced significant dividends for webMethods, which has led us to expand our commitment to the IDC," said David Mitchell, president and CEO, webMethods, Inc. "Beyond its impact on accelerating software development, the IDC has also proven to be an important base for expanding our collaboration with key partners. Our SOA-based technology is allowing these partners to leverage the benefits of service reuse to increase the speed and efficiency in which they're able to create highly targeted solutions for their end customers."

Mitchell and Muhlner attended yesterday's official opening of the IDC in Bangalore, India.

About webMethods, Inc.

webMethods (Nasdaq: WEBM) provides business integration software to integrate, assemble and optimize available IT assets to drive business process productivity. webMethods delivers an innovative, enterprise-class business integration platform that incorporates proven integration technology with next generation capabilities into one interoperable set of tools that delivers a unique combination of efficiency, agility and control. webMethods combines industry leadership with a zealous commitment to customers to deliver tangible business value to over 1,400 global customers. webMethods is headquartered in Fairfax, Va., with offices throughout the U.S., Europe, Asia Pacific and Japan.

The webMethods name and logo are registered trademarks of, and webMethods Fabric is a trademark of, webMethods, Inc. All other marks mentioned are trademarks or service marks of their respective companies.

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