SUNNYVALE, Calif., - July 22, 2003 - Interwoven, Inc. (Nasdaq: IWOV), a world-leading provider of content management for the enterprise, today reported its second quarter results. Revenues for the quarter ended June 30, 2003 were $26.2 million, a decrease of 21% from revenues of $33.0 million for the quarter ended June 30, 2002 and an increase of 2% from revenues of $25.6 million for the quarter ended March 31, 2003. License revenues represented 39% of total revenues, and service revenues represented 61% of total revenues. During the quarter, Interwoven signed 34 new license customers, including customers added as a result of the MediaBin acquisition, bringing the Company's total customer count to 1,251.

For the quarter ended June 30, 2003, net loss on a GAAP basis was $7.2 million, or $0.07 net loss per share on a basic and diluted basis, compared with a net loss of $13.8 million, or $0.13 net loss per share on a basic and diluted basis, for the quarter ended June 30, 2002. Pro forma net loss was $4.3 million, or $0.04 net loss per share on a basic and diluted basis, for the quarter ended June 30, 2003, compared with pro forma net loss of $5.2 million, or $0.05 net loss per share on a basic and diluted basis, for the quarter ended June 30, 2002.

Pro forma net loss for the quarter ended June 30, 2003 differs from GAAP net loss because it excludes the following expenses: amortization of intangible assets of $444,000, amortization of deferred stock-based compensation of $493,000, write-off of in-process research and development of $599,000, and restructuring charges of $1.3 million. For the quarter ended June 30, 2002, pro forma net loss differs from GAAP net loss because it excludes the following expenses: amortization of intangible assets of $1.3 million, amortization of deferred stock-based compensation of $58,000, and restructuring charges of $7.2 million.

For the six-month period ended June 30, 2003, revenues were $51.8 million, a 21% decrease from revenues of $65.7 million for the comparable period in 2002. For the six-month period ended June 30, 2003, net loss on a GAAP basis was $16.3 million, or $0.16 net loss per share on a basic and diluted basis, compared with a net loss of $29.5 million, or $0.29 net loss per share on a basic and diluted basis, for the six-month period ended June 30, 2002. Pro forma net loss was $11.4 million, or $0.11 net loss per share on a basic and diluted basis, for the six-month period ended June 30, 2003, compared with pro forma net loss of $15.2 million, or $0.15 net loss per share on a basic and diluted basis, for the six-month period ended June 30, 2002.

Pro forma net loss for the six-month period ended June 30, 2003 differs from GAAP net loss because it excludes the following expenses: amortization of intangible assets of $888,000, amortization of deferred stock-based compensation of $1.0 million, write-off of in-process research and development of $599,000 and restructuring charges of $2.4 million. For the six-month period ended June 30, 2002, pro forma net loss differs from GAAP net loss because it excludes the following expenses: amortization of intangible assets of $2.5 million, amortization of deferred stock-based compensation of $3.3 million, and restructuring charges of $8.5 million.

The Company believes that this pro forma information is useful to investors because it reflects the Company's results excluding non-cash expenses and cash expenses that the Company believes are not indicative of its on-going operations. However, Interwoven urges readers to review and consider carefully the GAAP financial information contained in the Company's SEC filings and in earnings releases.

"This quarter we made enormous strides in our ability to communicate the full value of the breadth of our product offerings - and I am extremely proud to say that on all fronts, the quarter's results truly reflect this renewed clarity and focus," said Martin Brauns, chairman and CEO of Interwoven. "In just 90 days we've made progress in a number of areas - from acquiring MediaBin to launching a new platform, Interwoven 6, not to mention a host of other significant product and partner announcements. I believe Interwoven's long-term opportunity remains very strong, and with more than 1200 customers worldwide, Interwoven is well-positioned to continue its content management leadership." Key new global customers include: Asia Pacific Broadband Wireless, Blue Cross Blue Shield of Mississippi South, Buckinghamshire County Council, City of Rochester, General Mills, Home Shopping Network, LG Caltex Oil, PalmSource, Sainsbury's Bank, Singapore's National Institute of Education, Tech Data Corporation, and the U.S. Department of Veteran's Affairs.

Interwoven also received significant customer reorders that included: Alltel, British Telecom, Deere, Fleet National Bank, HBO, Motorola, Standard Chartered Bank, Sun, SunTrust Bank, Sutter Health, Toyota, and Yamaha.

Corporate Highlights

• Interwoven launched the Interwoven 6 Platform with advances targeted at usability, business solutions, and regulatory compliance;
• Interwoven acquired leading digital asset management company MediaBin;
• Interwoven was awarded a Silver award for simplicity and ease of integration with IBM WebSphere by WebSphere magazine;
• Interwoven strengthened its relationship with IBM through an integration with IBM Content Manager;
• Interwoven announced it will OEM the IBM DB2 RM product as its records management product line;
• Interwoven recently announced that its Linux support, together with Interwoven OpenDeploy Content Distribution software, is helping customers lower their total cost of ownership.

The Company's regular conference call to report final results for the quarter ended June 30, 2003 is scheduled for today, July 22 at 2:00 pm Pacific Time. The dial-in number is (913) 981-4900; the pass code is #431620.

Replay information and live audio Webcast instructions will be available at Interwoven's Website at http://www.interwoven.cn/investors or by calling (719) 457-0820; the pass code is #431620.

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Copyright 1996-2003 Interwoven, Inc. All rights reserved. Interwoven, TeamSite, MetaTagger, OpenDeploy, MediaBin, the taglines, logo and service marks are trademarks of Interwoven, Inc., which may be registered in certain jurisdictions. All other trademarks are owned by their respective owners.