Ariba Completes Sale of Sourcing Services and Business Process Outsourcing Services Assets to Accenture

Ariba, Inc. (Nasdaq: ARBA), the leading provider of collaborative business commerce solutions, today announced that it has completed the sale of its sourcing services and business process outsourcing (BPO) services assets to Accenture (NYSE: ACN).

"The divestment of our sourcing services and BPO services assets is a very positive step in the evolution of Ariba that puts us one step closer to our goal of becoming a network company with on-demand solutions,” said Kevin Costello, President, Ariba.

Originally announced on October 6, the acquisition gives Accenture ownership of Ariba’s category expertise, sourcing process expertise and strategic sourcing execution resources. Ariba has retained its sourcing technology and the resources within its Global Services organization that are dedicated to software implementation, enablement and adoption. Ariba will continue to provide customers with services that help them maximize their use of Ariba’s solutions and the results that they deliver.

Updated Financial Outlook for the Divestment

Ariba had previously estimated the contribution to fiscal year 2011 of the divested business to be approximately $40M and $0.07 in Non-GAAP revenue and EPS respectively. Based on these numbers, the Company is updating its previously provided guidance to reflect the close of the divested business.

For fiscal year 2011, Ariba now expects total revenues to be approximately $347 million +/- $5 million. The subscription software and maintenance revenue outlook remains unchanged at $266.5 million to $270.5 million. The services revenue outlook is now expected to be $78.5 million +/- $5 million. Accordingly, Non-GAAP EPS is now expected to be in the range of $0.77 to $0.81, and cash flow from operations before lease loss and restructuring charges at $84 million +/- $5 million.

For the first quarter of fiscal year 2011, Ariba now expects total revenues to be approximately $86 million +/- $1 million. The subscription software and maintenance revenue outlook remains unchanged at approximately $64.5 million. The services revenue outlook is now expected to be $21.5 million +/- $1 million. Accordingly, Non-GAAP EPS is now expected to be $0.16 to $0.18.

About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business commerce solutions. Ariba combines industry-leading technology to optimize the complete commerce lifecycle with the world's largest web-based community to discover, connect and collaborate with a global network of trading partners, delivering everything needed to control costs, minimize risk, improve profits and enhance cash flow and operations – all in a cloud-based environment. Whether you’re buying, selling or managing cash, you can do it more efficiently and effectively in the Ariba® Commerce Cloud. Over 325,000 companies, including more than 90 percent of the Fortune 100, use Ariba’s solutions to drive more efficient inter-enterprise commerce. Why not join them? For more information on Ariba commerce solutions and the results they deliver, visit www.ariba.com.

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Ariba Safe Harbor
Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba's expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba's operating and financial results to differ materially from current expectations include, but are not limited to: the impact of the credit crises on Ariba’s results of operations and financial condition; delays in development or shipment of new versions of Ariba's products and services; lack of market acceptance of Ariba's existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the impact of any acquisitions, including risks and uncertainties arising from the possibility that a closing may be delayed or may not occur and difficulties with the integration process or the realization of benefits of a transaction; the impact of our disposition, including the potential disruption of our ongoing business; the ability to attract and retain qualified employees; difficulties in assimilating acquired companies, long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions, including the impact of a recession; inability to control costs; changes in the company's pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions and dispositions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-Q filed with the SEC on August 5, 2010.

This press release references certain forward-looking non-GAAP financial information including fiscal year 2011 revenues and earnings per share (EPS). We are unable to reconcile this forward-looking non-GAAP financial information to corresponding forward-looking GAAP measures because we are unable to estimate without unreasonable efforts certain forward-looking GAAP revenue, expense and other income items.