Gauss Interprise AG to merge with Magellan Software, Inc., and become a worldwide leading provider of Content and Portal Management for the eCorporation. Gauss

Hamburg/Irvine/CA (PROTEXT) - Gauss Interprise AG (WKN 507460/ISIN DE0005074603), listed on the Neuer Markt sinceOctober1999, announces today that it is to merge with MagellanSoftware, Inc., Irvine, California, USA, allowing the company torealize its previously stated goal of rapid entry into the USmarket. Primary motivators for the merger include the desire tomeet the expressed request of customers to provide a completeIntegrated Content Management solution that is truly open andflexible. The complementary nature of the two product lines, andthe engineering commitment of both companies to open and scalableimplementations, make this a natural fit. The merged company willimmediately become one of the world's foremost integrated contentsolution suppliers, able to address needs throughout enterprisecustomers' businesses by providing Content and Portal Managementsystems for all types of eBusiness. The resulting softwareproduct family not only accelerates the creation, collaborationand maintenance of content, but also contributes essentialstandard interfaces, repositories, and portal content. With theplanned consolidation of the consulting practice as GaussInterprise Consulting AG, the company is making a furtherstructural step toward establishing itself as a globallyoperating product company. Gauss Interprise and Magellan Products - mutuallycomplementary Magellan's product family SpyVision significantly enhances theVersatile Internet Platform (VIP') product family from GaussInterprise AG. SpyVision encompasses the complete businesscontent workflow and provides the integration and digitalprocessing of all business paperwork. The SpyVision products canbe quickly and seamlessly integrated with the VIP' productfamily. This produces a unique software solution in which allexisting digital content based business processes are conductedwith all necessary quality controls and this content is madeavailable in a personalized fashion, all in a unifiedenvironment. A first integration will be demonstrated in May atInternet World in Berlin. Gauss Interprise and Magellan are positioned at the peak ofthe quickly moving transition of Content Management from a toolfor creation of websites to content infrastructure software,which provides the business processes and company portals withelectronic content. According to estimates by the Gartner Group,the market for Content Management Systems will increase from US$400 million in the year 2000 to US $2.5 billion in 2002, andthus increase more than sixfold in less than 3 years. With morethan 120 employees and with an installed base of approximately1000 customers, Magellan has established a wide, geographicallydistributed sales network. In addition, Magellan has aninternational sales network with a presence in the UK, Germany,the Netherlands, France and Poland, as well as salesrepresentatives in Australia and Singapore. Magellan Software - a historically profitable company The merger with Magellan means that Gauss Interprise reaches anew milestone in the internationalization of its productbusiness. Magellan benefits from the technologically leading roleof Gauss Interprise in the area of Content and Portal Management.Magellan, founded in 1993, achieved 1999 revenue of US $17.3million in the areas of Content Management and eBusinesssolutions. License revenues totalled US $12.4 million. Magellan,profitable since start up, achieved a balanced result despitestrong investments in R&D and Sales in 1999. The mergertransaction encompassingall outstanding sharesofMagellanis to berealized essentially via a share swap. Ronald M. Vangell andEdward R. Malley, Magellan`s present managers and primaryshareholders, will manage the US business for the GaussInterprise Group. Loreli A.Trippel, who has managed the businessfor Gauss Interprise, Inc. since incorporation in the US, assumesresponsibility for building strategic partnerships as well asproject management for the integration of the two companies inthe US. All staff are expected to be retained after the merger.The company headquarters will be located in Irvine, California. Consolidation of the consulting services as an independentsubsidiary With the new positioning of Gauss Interprise, a furtherimportant change is also being accomplished. The consultingservices business of Gauss Interprise, primarily based inGermany, will be consolidated as Gauss Interprise Consulting AG,a fully owned subsidiary of Gauss Interprise. This positions thecompany for its focus as a product based company. GaussInterprise Consulting AG will operate as an independentsubsidiary and will be able to promptly react to the requirementsof its consulting business. About Gauss Interprise AG Founded in 1983, the corporation is the leading provider inGermany for content and portal management systems. In 1999 GaussInterprise achieved revenue of DM 19.5 million. It has sincegrown to a staff of 260 and, besides its headquarters in Hamburg,has sites in Berlin, Frankfurt, Munich and Stuttgart as well asin Paris and Mountain View,California. The VIP' Product familyprovides an open, fully scalable software platform for webcontent management, facilitating the creation, maintenance andmarketing of complex content for large websites. "IntelligentEnterprise Portals" can be built up on the basis of VIP',facilitating the creation of personalized websites as well as theintelligent search for information. With the help of VIP'products, the administration of complex website structures in theInternet and intranets of major corporations as well as theconnection of Internet contents to business processes can becarried out efficiently. In addition to its product business,Gauss Interprise's consulting practice offers professional ITusers support in developing their IT infrastructure for theInternet. The company's services sector is divided into threeCompetence Centers: Technology Consulting for customer-relatedstudies and strategies, Internet Business Innovations forexploiting the new potential of Internet technology in terms ofefficiency, quality and service, and Java/CORBA Development toimplement custom applications and systems software on the basisof Java and CORBA. About Magellan Software, Inc. Magellan Software, founded in 1993, is a leading provider ofContent Management and e-Business solutions. In 1999 the companyachieved revenue of over US $17 million. Employees, numberingover 120, are located in headquarters in Irvine, California, aswell as in numerous branch locations in the US. In addition,Magellan has representatives in Sydney, Australia and Singaporeas well as franchise partners in Germany, France, theNetherlands, Belgium, Poland, and the UK. The SpyVision productfamily from Magellan Software allows organizations to capture,organize, and securely distribute knowledge assets and Internet-enable line-of-business applications. Core components forelectronic content capture and digital imaging work in concertwith transaction-triggered workflow and e-Business capabilitiesto efficiently handle order processing, product fulfillment,claims processing, account payment, rendition billing, productengineering lifecycles, and more. ots Originaltext: GaussInterprise AG Im Internet recherchierbar:http://recherche.newsaktuell.de For further information: GaussInterprise AG Doris Franke Corporate Communications Tel.: +49-40-51441-238 Fax: +49-40-51441-200 Himmelstraße 12-16 D-22299Hamburg E-Mail: doris.franke@gauss-interprise.com Web:www.gauss-interprise.com Kirchhoff Consult AG Frank SchwarzTel.: +49-40-609 186 34 Fax: +49-40-609 186 71 E-Mail:frank.schwarz@kirchhoff.de Gauss Interprise, Inc. c/o CandeloriCommunications, Inc. Donna Candelori 1270 Oakmead Parkway, Suite314 Sunnyvale, CA 94086 Tel.: +1-408-774-3414 Fax: +1-408-774-3419 E-Mail: dcandelori@candelori.com Magellan Software, Inc.Andrew Reed 8717 Research Drive Irvine, California 92618 Tel: +1-949-784-8000 Fax: +1-949-784-8300 E-Mail: areed@magellan.comWeb:www.magellan.com

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