SOURCEALLIANCE SELECTS WEBMETHODS FOR STRATEGIC BUSINESS-TO- BUSINESSINTEGRATION INITIATIVE

[Erin Del Llano <edelllano@schwartz-pr.com>]

FOR IMMEDIATE RELEASE

Contact:        Bruce Bittner                           Nicole Keating
                SourceAlliance                          webMethods, Inc.
                919-465-6319                            703-460-5960
                bbittner@sourcealliance.com             nkeating@webMethods.com

                Shannon Severino                                John Moran or Jason Morris
                Ketchum                                 Schwartz Communications, Inc.
                412-456-3699                            781-684-0770
                shannon.severino@ketchum.com            webMethods@schwartz-pr.com


SOURCEALLIANCE SELECTS WEBMETHODS FOR STRATEGIC BUSINESS-TO-
BUSINESS INTEGRATION INITIATIVES

webMethods B2B Provides SourceAlliance with the Critical B2Bi Platform for Connecting to Leading Online Marketplaces

FAIRFAX, Va. and RALEIGH, N.C.July 18, 2000 webMethods, Inc. (Nasdaq: WEBM), the leading provider of business-to-business integration (B2Bi) solutions, and SourceAlliance, an established, independent leader in electrical product e-commerce, today announced that SourceAlliance has selected webMethods B2B™ as the defacto B2Bi standard for connecting to leading online marketplaces and its extensive distributor network. Using webMethods B2B to integrate with leading online marketplaces will enable SourceAlliance customers to purchase electrical products in a fully automated, online environment.

SourceAlliance will use webMethods B2B to offer expanded access to its digital marketplace by enabling SourceAlliance to connect to any online marketplace or trading partner for an efficient, interconnected business world. With webMethods B2B, procurement operations are integrated directly with back-end ERP systems, eliminating the need to spend countless hours manually processing or custom reengineering legacy, proprietary or third-party ERP systems. The result is increased product offerings, faster ordering and delivery and tremendous cost and time savings.

“webMethods is pleased to help SourceAlliance realize its strategic business-to-business e- commerce initiatives,” said Phillip Merrick, president and CEO of webMethods, Inc. “By providing SourceAlliance with a flexible and open solution for connecting to leading B2B procurement marketplaces, webMethods is enabling SourceAlliance to expand its sales channel, reduce inefficiencies in the purchasing process and create tighter relationships with its customers.”

Through webMethods B2B’s comprehensive support of leading industry standards and protocols, SourceAlliance will offer its customers an XML-based, B2Bi platform for connecting to many of the leading online marketplaces. SourceAlliance will also utilize XML-based integration among its extensive network of distributors and manufacturers to enhance the buying experience for its customers.

“Effective B2B integration is more than just XML”, said Rick Sturgeon, Chief Technology Officer of SourceAlliance.  “webMethods is a clear leader for business-to-business integration as they provide both XML translation and the required business process integration for the major exchanges right out of the box.  We are able to demonstrate exchange integration with our business systems very quickly - a key component in accelerating time to market.”

webMethods provides a comprehensive solution that allows organizations to effectively realize B2B e-commerce strategies. Through broad support of open standards and protocols, such as XML, RosettaNet, ebXML, FpML, cXML, xCBL, OBI, OAG, ACORD, Microsoft BizTalk and legacy EDI, the webMethods B2B family of products provides the critical B2B integration software that enables companies to form powerful trading networks with customers, suppliers and partners. With webMethods B2B, companies can conduct business-to-business over the Internet with minimal stress to corporate resources and existing technology infrastructure.

webMethods, Inc.

webMethods, Inc. (Nasdaq: WEBM) is the leading provider of software solutions for business- to-business integration (B2Bi). Leveraging the open standards of the Internet, the award-winning webMethods B2B™ family of products provides the B2Bi infrastructure that enables Global 2000 companies and B2B marketplaces to connect customers, suppliers and partners to form real-time B2B trading networks. webMethods B2B allows companies to create new revenue opportunities, strengthen relationships with customers and substantially reduce supply chain inefficiencies.

Founded in 1996, webMethods is based in Fairfax, Va., with offices across the U.S. and Europe. webMethods has more than 160 customers worldwidefrom Global 2000 leaders such as Dell (Nasdaq: Dell), Eastman Chemical Company (NYSE: EMN), Lucent Technologies (NYSE: LU) and Grainger (NYSE: GWW) to major B2B marketplaces like ChemConnect, e-STEEL and Ventro (Nasdaq: VNTR). webMethods’ strategic partners include Ariba (Nasdaq: ARBA), Commerce One (Nasdaq: CMRC), Deloitte Consulting, EDS (NYSE: EDS), i2 Technologies (Nasdaq: ITWO), KPMG Consulting, Microsoft Corp. (Nasdaq: MSFT), Oracle Corp. (Nasdaq: ORCL), Sterling Commerce and SAP AG (NYSE: SAP). More information about the company can be found at www.webMethods.com.

About SourceAlliance

The established, independent leader in electrical products e-commerce, SourceAlliance combines the power of Internet technology with an extensive network of manufacturers and distributors to offer customers a one-stop source for all their electrical products procurement needs. SourceAlliance offers customers in the industrial, commercial, construction, utility and data communications industries quick access to more than one million products representing the depth and breadth of the electrical industry’s leading brands. SourceAlliance enables manufacturers and distributors to reach the largest universe of customers instantly and to increase their products' speed to market.  Additional information can be found at www.sourcealliance.com.

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webMethods and webMethods B2B are trademarks of webMethods, Inc. All other company and product names are property of their respective owners.

This press release contains various remarks about the future expectations, plans and prospects of webMethods that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. 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 in the Risk Factors section of webMethods’ recent Registration Statement on Form S-1, which is on file with the Securities and Exchange Commission. Page 2: SourceAlliance.com Selects webMethods for Strategic Business-to-Business Integration Initiatives

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