Vignette Corporation Announces Record Second Quarter

Results Quarterly Revenues Increase Over 400% Year Over Year and63% Sequentially Quarter Over Quarter Austin, Texas (PROTEXT) - Vignette Corporation (Nasdaq: VIGN)today announced that for the quarter ended June 30, 1999, totalrevenues increased 409% to $14.9 million from revenues of $2.9million for the same period in 1998. Loss from core operationsfor the second quarter (excluding acquisition-related charges andamortization of deferred stock compensation) was $(5.5) millionor $(.22) per share, compared to $(5.5) million or $(.31) pershare for the same period in 1998. Reported net loss for thequarter was $(21.5) million or $(.86) per share, compared to anet loss of $(8.1) million or $(.46) per share, for the sameperiod in 1998. For the six months ended June 30, 1999, total revenues were$24.0 million, a 364% increase over total revenues of $5.2million for the same period in 1998. Reported net loss for thesix months ended June 30, 1999 was $(29.5) million compared to$(10.1) million for the same period in 1998. In an effort to provide a comparison with analyst models, thenet loss per share figures above have been presented on a proforma basis, as if all preferred shares were converted to commonshares at the time of issuance. "We are very pleased with our second quarter operating resultsand continue to be excited by the pace and quality of companieswho are being added to our roster of customers," said GregPeters, president and CEO of Vignette. "Our execution was solidduring the quarter as we continued to increase our distributionchannels, broaden our professional services capabilities, bothdirect and through third party providers, and expand our productofferings. The result is the continued acceleration of marketshare for the Company and a growth rate that is setting a newstandard for enterprise software companies." Customer Orders The Company continues to add industry leading customers to itsclient list. Vignette added a record 67 new customers in thesecond quarter of 1999. New customers during the quarter includeAmway, Ingram Micro, Compaq Computer Corporation, The E.W.Scripps Co., Postbank, The Bureau of National Affairs,Morningstar Inc., The Gazette, Asymetrix Learning Systems,Office.com, Inc.com, CSC Holdings Inc., Turner EntertainmentGroup, Volvo and Telstra. The company realized significant ordersfrom existing customers including Citicorp, Level 3Communications, First Union Corporation, American Express TravelRelated Services Company, Inc., DHL Worldwide Express, SwedishRailroad, Wegener, New York Life Insurance, Tandy Corporation,Electronic Newstand, One Zero Media and several of its other bluechip customers. The Company is especially pleased to announce that in thesecond quarter, Merrill Lynch selected Vignette as the foundationon which its entire enterprise-wide Internet platform will bebuilt. Acquisitions and Investments On June 30, 1999, Vignette completed the acquisition ofDiffusion, Inc., a leader in multi-channel information deliverysolutions, further strengthening Vignette's position as theleading provider of Internet Relationship Management (IRM)solutions. Vignette Multi-Channel Server(TM) is targeted towardsorganizations that look to develop tighter, more individualcustomer relationships with their online customer base. The newsoftware provides a central point of management and control forautomated interaction with a defined customer community. VignetteMulti-Channel Server will enable Vignette customers to manage thedistribution of personalized information across any deliverychannel, including the Web, e-mail, fax, pager and telephone,regardless of the channel the communication originates from or isrouted through. On June 15, 1999, Vignette announced it made a strategicinvestment in iSyndicate, the leading provider of syndicatedcontent on the Web. This investment allows the Company to play akey role in the development of the syndication marketplace.iSyndicate will make its content offerings available using theInformation Content Exchange (ICE) protocol, leveraging VignetteSyndication Server(TM). About Vignette Vignette Corporation, the leader in the category of InternetRelationship Management (IRM) software products and services,provides enterprise solutions for companies that are buildingbusinesses online. Vignette's products and services, whichinclude StoryServer(TM) 4 software, Vignette SyndicationServer(TM) (VSS(TM)) software, Vignette Development Center(TM)(VDC(TM)) and its recently announced Vignette Multi-ChannelServer(TM) software are designed to allow businesses to use theWeb as a new channel for customer acquisition and retention. Headquartered in Austin, Texas, Vignette Corporation also hasoffices located throughout Europe and in Australia. Foradditional information on this announcement and Vignette's IRMsoftware products and services, visit the World Wide Web athttp://www.vignette.com . The statements contained in this earnings release that are notpurely historical are forward looking statements within themeaning of Section 21E of the Securities Exchange Act of 1934,including statements regarding the Company's expectations,beliefs, hopes, intentions or strategies regarding the future.Forward looking statements include statements regarding futuresales, market growth, and competition. All forward lookingstatements included in this earnings release are based uponinformation available to the Company as of the date hereof, andthe Company assumes no obligation to update any such forwardlooking statement. Actual results could differ materially fromthe Company's current expectations. Factors that could cause orcontribute to such differences include, but are not limited to,Future Losses, Limited Operating History, Fluctuation ofQuarterly Revenues and Operating Results, Competition, Dependenceon a Small Number of Large Orders, Lengthy Sales Cycle andProduct Implementation, Market Awareness of Our Product, RapidChanges in Internet Relationship Management Technology and NewProducts, and other factors and risks discussed in the Company'sRegistration Statement on Form S- 1, as amended and filed withthe Securities and Exchange Commission and any reports filed fromtime to time with the Securities and Exchange Commission. NOTE: StoryServer, Vignette Syndication Server, VSS, VignetteDevelopment Center, VDC, and Vignette are trademarks of VignetteCorporation. All other names and terms in this release aretrademarks or registered trademarks of their respectivecompanies. ots Original Text Service: Vignette CorporationInternet: http://www.newsaktuell.de Contact: Joel G. Katz, ChiefFinancial Officer, 512-306-4622, fax, 512-306-4500, orjkatz@vignette.com, or Kellie R. Nugent, Investor Relations, 512-306-4541, fax, 512-306-4500, or knugent@vignette.com, or KalaRanganathan, Public Relations, 512-306-4369, fax, 512-306-4500,or kala@vignette.com, all of Vignette Corporation (in the USA)Web site: http://www.vignette.com

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