FileNet poised for continued success with strategic acquisition; FileNet purchases Saros, enhances competitive position

Business Wire, Jan 18, 1996

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Jan. 18, 1996 -- FileNet today announced it has acquired Saros for 2,222,000 shares worth approximately $100 million. The acquisition of a document management company significantly enhances FileNet's overall competitive position and changes the competitive landscape of the productivity-enhancing applications software marketplace.

According to Scott C. McCready, principal of IDC/Avante, "This is by far the best move that FileNet has made in its corporate history. Acquiring a document management software vendor demonstrates the company understands document management is a key piece of the productivity solution for the vast majority of U.S. corporations. This acquisition will make FileNet a much broader player in the productivity-enhancing software marketplace and open the door to much larger desktop sales."

Document management tends to be a much more pervasive technology than FileNet's traditional image product offerings. FileNet's imaging products typically automate departmental processes such as claims processing in the insurance industry or credit card processing in banking. The result is that most companies that do have a significant investment in imaging also have systems from more than one vendor. In contrast, most corporations that deploy document management put it on every desktop.

Imaging tends to be explicit, expensive and creates islands of highly automate departments of heads-down dedicated users. Document management tends to be enterprise-wide, standard, available on every desktop, consistent with existing desktop applications and highly integrated into specific line-of-business applications.

As McCready explained, "For those companies that have invested in document management it tends to be pervasive but non-invasive. This is a technology that runs in the background either by itself or in a highly integrated fashion while making a serious productivity contribution."

With this acquisition, FileNet has accomplished a number of significant objectives:

o Substantially upped its software sales volume

o Acquired a product line that is enterprise-wide in nature

o Differentiated itself from its traditional competitors

o Acquired a technology available from a very limited number of

vendors

From an acquisition perspective in the software business this is about as good as it gets.

About IDC

International Data Corporation is the world's leading provider of information technology data, analysis and consulting. With research centers in 40 countries and more than 300 research analysts worldwide, IDC is uniquely positioned to provide a global perspective on IT market and technology trends.

IDC's subsidiary, IDC/LINK, specializes in the convergence of the information, telecommunications, personal computing, and electronic entertainment industries.

Based in Framingham, Mass., IDC is a subsidiary of International Data Group (IDG), the world's largest publisher of computer-related information and the leading global provider of information services on information technology. -0-

All product and company names may be trademarks or registered trademarks of their respective holders.

CONTACT: International Data Corp.

Scott C. McCready

508/935-4300

or

Dara Queen, 508/935-4585