• SilverStream eXtend Leads Industry with the Most Comprehensive Visual Integrated Services Environment

BILLERICA, Mass. – June 25, 2002 – SilverStream Software, Inc. (Nasdaq: SSSW), a leading provider of integrated software products for Web services-based applications, today marked a significant milestone in the company's history. Two years ago SilverStream formally entered the Web services arena by unveiling the cornerstones of SilverStream eXtend™, the company's award-winning Visual Integrated Services Environment (ISE). SilverStream eXtend enables the rapid creation of services-oriented applications that integrate an unprecedented range of enterprise systems and delivers dynamic, interactive applications to users in any location on any device.

Marking the occasion and further building on the company's tradition of leadership and innovation, SilverStream has also announced the first commercial implementation of the Java API for XML-based remote procedure calls (JAX-RPC) with the release of its Web services engine, jBroker Web 2.0 (see related announcement issued June 24, 2002). jBroker Web is a key component of the SilverStream eXtend Visual ISE that also includes SilverStream eXtend Composer (eXtend Composer), a powerful XML integration server, SilverStream eXtend Director (eXtend Director), a robust interaction server, and SilverStream eXtend Workbench (eXtend Workbench), the fully integrated and highly productive development environment for SilverStream eXtend.

History of Innovation
In June 2000, SilverStream shipped the first versions of eXtend Composer and eXtend Director. In August that same year, eXtend Composer became the first commercially available integration server to support the then-newly released SOAP standard, reflecting the commitment to industry standards that is at the heart of the SilverStream's product strategy. By the end of 2000, SilverStream had also shipped one of the industry's first J2EE-certified application servers and, subsequently, provided first-to-market support of market-leading application servers such as IBM WebSphere and BEA WebLogic. SilverStream's support of market-leading J2EE application servers offers IT organizations that use SilverStream eXtend unparalleled choice and flexibility.

At the June 2001 JavaOne Worldwide Developer conference, SilverStream delivered early access to eXtend Workbench, the powerful development environment integrated with the SilverStream eXtend Visual ISE. In the year since, SilverStream eXtend has continued to evolve and remains the industry's most comprehensive Visual ISE, offering the ability to both Web service-enable existing enterprise systems as well as deliver dynamic, interactive applications to any user on any device or platform. All SilverStream products are renowned for high productivity and rapid time-to-market, qualities that have set its products apart from their competitors since the company's inception in 1996.

Throughout the evolution of SilverStream eXtend, the company has practiced strict adherence to industry standards such as J2EE, XML, SOAP and others. Additionally, SilverStream has contributed to the development of many key industry standards through membership and work with leading organizations such as the Java Community Process, OASIS, RosettaNet, UDDI.org and the WS-I.

"Two years ago, we delivered the building blocks for SilverStream eXtend, marking an important milestone in the history of the company," SilverStream president and CEO, David Litwack, said. "Today's IT projects are subject to the same kinds of pressures that organizations have been struggling with for years - tight timetables, existing staff skill sets and diminishing budgets. Unlike the competition, SilverStream provides all the necessary technology plus renowned productivity and portability that supports aggressive project schedules, exploits existing IT skills and systems, and allows organizations to 'do more with less'."

Customer Success and Industry Recognition
During the past year, SilverStream has helped companies from a range of different industries such as financial services, insurance, healthcare and manufacturing fully exploit the value of their existing enterprise systems. Customers using SilverStream eXtend can repurpose those existing systems as Web services, and deliver information from those systems to diverse user communities through dynamic, interactive Web applications.

"SilverStream partnered with us to develop a system that provides our provider network with superior access to information and opens up new revenue opportunities without compromising our existing infrastructure," said Marilyn Daly, R.N., director of eCommerce and clinical applications for Neighborhood Health Plan, a Massachusetts-based regional health maintenance organization (HMO) that deployed SilverStream eXtend to re-launch its provider portal and integrate with external systems necessary for HIPAA compliance. "We look forward to further leveraging the functionality of SilverStream eXtend to expand access to our provider network and increase the value we offer by making it easier for providers to access service authorization, verify eligibility information, check on the status of a claim for our membership."

The industry has responded to the accomplishments of SilverStream eXtend with recognition and acclaim. SilverStream eXtend was recently named "Product of the Year" for 2002 by eAI Journal and also received nods from Computing Magazine with an "Award for Excellence", and Asia Computer Weekly as a "Technology Trailblazer." In addition, SilverStream eXtend Composer was named a "World Class Product" by Web Services Journal, the premier monthly print publication devoted to Web services.

The Future With Novell
SilverStream's position as an industry pioneer was further validated on June 9, when Novell, the leading provider of Net business solutions, entered into a definitive agreement to acquire SilverStream and add Web services-based application development to its portfolio of existing products. The proposed acquisition will significantly expand Novell's ability to deliver on its one Net vision of the Internet by enabling customers to quickly develop business applications that exploit the latest Web technologies while leveraging existing IT investments.

Novell's one Net vision delivers industry-leading solutions for planning, implementing and managing today's advanced business applications. It's also the only solution that is standards-based and interoperates with all market leading platforms without bias. With SilverStream, Novell's offerings will be broadened to include the capabilities that are required to serve enterprises seeking to deploy advanced Web applications -- business solutions, Web services application development and reliable, secure network infrastructure.

About SilverStream eXtend
SilverStream eXtend, the eAI Journal Product of the Year for 2002, is a highly productive visual integrated services environment for the rapid creation and management of enterprise information systems. SilverStream eXtend features breakthrough technology for XML integration to legacy systems, business process management, interactive applications, personalization, content management, user management, wireless device support, and more. In addition, SilverStream eXtend leverages the reliability, security and scalability of leading J2EE application servers, including IBM WebSphere, BEA WebLogic and the SilverStream eXtend Application Server, to offer IT organizations unparalleled choice and flexibility. For more information, please visit: http://www.silverstream.com/extend.

About SilverStream Software, Inc.
SilverStream Software, Inc. provides the first comprehensive Visual Integrated Services Environment to simplify and accelerate the development of sophisticated business applications. SilverStream's award-winning technology is based on the best of Java, XML, and Web services, and enables businesses to unlock the potential of existing systems and rapidly deliver business applications to the Web. SilverStream powers business operations for more than 1,500 customers worldwide including Acer, Amerisure Insurance, BNP Paribas, the Chicago Stock Exchange, Samsung Electronics, Suzuki and Zurich Insurance. SilverStream's worldwide partner network includes system integrators, independent software vendors, application service providers and other strategic partners such as Cap Gemini Ernst & Young, Compaq, Deloitte & Touche, Hewlett-Packard, IBM, Intel, Mercury Interactive, Microsoft, Oracle and Sun Microsystems.

SilverStream Software is headquartered in Billerica, Mass. with offices throughout the world. For more information, please visit http://www.silverstream.com.

SilverStream is a registered trademark and SilverStream eXtend is a trademark of SilverStream Software, Inc. All other names are trademarks or registered trademarks of their respective owners.

This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company's expectations, beliefs, hopes, intentions or strategies regarding the future, including the statements in this press release regarding the proposed acquisition of the Company by Novell. These statements involve risks and uncertainties that may cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements. Factors related to the subject matter of this press release that could cause or contribute to such differences include the failure to consummate the acquisition of the Company by Novell. Other factors that could cause or contribute to such differences include, but are not limited to the other risk factors that are discussed in the Company's reports and registration statements filed previously and from time to time with the U.S. Securities and Exchange Commission. All forward looking statements included in this press release are based upon information available to the Company as of the date hereof, and the Company does not assume any obligation to update such statements or the reasons why actual results could differ materially from those projected in such statements.