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Subject: GRAINGER AND WEBMETHODS EXPAND RELATIONSHIP TO INCLUDE ENTERPRISELICENSE AGREEMENT FOR END-TO-END B2Bi SOLUTION SUITE



FOR IMMEDIATE RELEASE

Contacts:       Nicole Keating          Lauren Arnold or Sarah Reed
webMethods, Inc.                        Schwartz Communications, Inc.
703-460-5960                            781-684-0770
nkeating@webMethods.com         webMethods@schwartz-pr.com


GRAINGER AND WEBMETHODS EXPAND RELATIONSHIP TO INCLUDE ENTERPRISE LICENSE AGREEMENT FOR END-TO-END B2Bi SOLUTION SUITE

webMethods Provides Grainger with Complete B2Bi, Facilitating Business Transactions Inside and Outside Enterprise Boundaries

FAIRFAX, Va.October 17, 2000webMethods, Inc. (Nasdaq: WEBM), the leading provider of business-to-business integration (B2Bi) solutions, today announced an enterprise- wide agreement with Grainger (NYSE: GWW), the leading provider of maintenance, repair and operating (MRO) supplies in North America. Grainger and webMethods have expanded their relationship and entered into an enterprise software license agreement of webMethods B2Bi Solutions Suite which enables Grainger to implement webMethods’ products and services across several of Grainger’s digital initiatives, including Grainger.com?, FindMRO.comSM and TotalMRO.comSM.

Using webMethods B2B, Grainger has already integrated transactions from Ariba, Commerce One and other leading marketplaces into their back-end legacy systems. For example, FindMRO.com, Grainger’s leading marketplace for strategic sourcing of hard-to- find MRO supplies, uses webMethods B2Bi Solution Suite to connect with key suppliers in its database of more than 14,000 companies. These integration initiatives provide Grainger’s customers with real-time, customer specific pricing and availability through those marketplaces.

For Grainger’s newest initiative, TotalMRO.com, webMethods provides integration solutions for rapidly connecting to leading marketplaces such as the Ariba® B2B Commerce Platform. TotalMRO.com provides customers with real-time access to easily searchable product information, contract pricing, and availability for millions of MRO supplies from major distributors. In addition, TotalMRO.com will leverage webMethods Enterprise, a software solution for quickly automating and streamlining the flow of information across disparate internal applications, and B2B.com, a Web-based rapid trading partner integration platform that accelerates the process of deploying and maintaining extensive B2B trading networks.

“This relationship delivers an immediate solution for enabling real-time supply chain integration,” said Don Bielinski, group president of Grainger. “webMethods provides unprecedented speed in trading partner integration and excellent scalability for our Grainger digital initiatives.”

“We are very excited to be chosen by Grainger as the enterprise-wide software solution for their end-to-end integration needs. webMethods solves Grainger’s marketplace integration problem by providing seamless integration from Ariba and other marketplaces into their SAP systems,” said Phillip Merrick, president and CEO of webMethods, Inc. “webMethods will now arm Grainger with a comprehensive product and service solution for integrating their customers and suppliers into efficient trading networks.”

webMethods B2Bi Solution Suite

The webMethods B2Bi Solution Suite automates business processes inside the enterprise and with partners and customers over the Internet. The comprehensive solution suite includes the following B2B, enterprise, mainframe and partner integration offerings that enable Global 2000 companies and B2B marketplaces to deploy a complete, end-to-end solution for integrating customers, suppliers and partners into real-time B2B trading networks, while also increasing internal operational efficiencies.

About Grainger

W.W. Grainger, Inc. (GWW) with 1999 sales of $4.5 billion, is the leading North American provider of maintenance, repair, and operating (MRO) supplies and related information to businesses and institutions. Grainger shares are traded on the New York and Chicago stock exchanges. For more information, visit Grainger online at www.grainger.com.

About webMethods, Inc.

webMethods, Inc. (Nasdaq: WEBM) is the leading provider of software solutions for business- to-business integration (B2Bi). As the only company providing seamless B2Bi across the Internet and throughout the extended enterprise, webMethods provides Global 2000 companies and B2B marketplaces with a complete, end-to-end solution for integrating customers, suppliers and partners into real-time B2B trading networks, while also increasing internal operational efficiencies. The webMethods product family allows companies to create new revenue opportunities, strengthen relationships with customers, substantially reduce supply chain inefficiencies and streamline internal business processes.

Founded in 1996, webMethods is based in Fairfax, Va., with offices across the U.S., Europe and Asia. With an emphasis on key vertical markets such as chemicals, financial services, high-tech manufacturing and telecommunications, webMethods has more than 425 customers worldwide-- from Global 2000 leaders such as Citibank, Dell, Eastman Chemical Company, Fidelity Investments, Grainger, Motorola and Starbucks to major B2B marketplaces like ChemConnect, e-STEEL and Ventro. webMethods’ strategic partners include Ariba, Commerce One, Deloitte Consulting, EDS, i2 Technologies, J.D. Edwards, KPMG, Microsoft, Oracle Corp., SAP AG and Siebel. More information about the company can be found at www.webMethods.com.


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webMethods and webMethods B2B are trademarks of webMethods, Inc.

Grainger, Find MRO.com, Grainger.com, and TotalMRO.com are registered trademarks of W.W. Grainger.Inc.

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-4 and the company’s annual report on form 10-K for the year ended March 31, 2000, which is on file with the Securities and Exchange Commission.



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