FileNet and Microsoft Strengthen Strategic Alliance to Deliver FileNet ECM Solutions on .NET

COSTA MESA, Calif. and REDMOND, Wash., Oct. 20, 2003 — FileNet Corporation and Microsoft Corp. today announced plans to implement a series of new development, sales and global marketing initiatives to provide customers with optimized FileNet enterprise content management (ECM) solutions that are built on Microsoft®
.NET. .NET is Microsoft’s solution for Web services and includes software that enables products to interoperate across platforms and provide value to customers seeking to connect their existing and future investments.

As part of the alliance, FileNet will work closely with Microsoft to broaden FileNet’s support for .NET by extending its use of Visual Studio®
.NET and enhancing its product offerings to include the .NET Framework, the Microsoft Office System, smart client technology and XML Web services. In addition, Microsoft and FileNet will collaborate on a plan for FileNet to adopt new technologies including Microsoft Office SharePoint (TM) Portal Server 2003 and the upcoming version of SQL Server, code-named “Yukon.”

“FileNet has a long history of developing and delivering solutions that are deeply integrated with Microsoft,” said Mark Young, general manager of the Platform Strategy and Partner Group at Microsoft. “Through the continued adoption of Microsoft technologies, FileNet is ideally positioned to provide customers with the control and consistency that they are looking for.”

“Microsoft continues to be our most popular platform of choice for customers that deploy our ECM solutions,” said Dan Whelan, chief technology officer with FileNet. “Support for Microsoft technology is key to FileNet’s commitment to meet customers’ increased business demands by delivering the industry’s most innovative and comprehensive ECM portfolio.”

In addition, the two companies will collaborate to bring these offering to customers through a series of joint marketing and sales campaigns, aligned with Microsoft’s go-to-market programs and vertical industry initiatives.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

About FileNet

FileNet Corporation (NASDAQ: FILE) helps organizations make better decisions by managing the content and processes that drive their business. FileNet’s Enterprise Content Management (ECM) solutions allow customers to build and sustain competitive advantage by managing content throughout their organizations, automating and streamlining their business processes, and providing the full spectrum of connectivity needed to simplify their critical and everyday decision making.

FileNet ECM solutions deliver a comprehensive set of capabilities that integrate with existing information systems to provide cost-effective solutions that solve real-world business problems.

Since the Company’s founding in 1982, more than 3,900 organizations, including 80 of the Fortune 100, have taken advantage of FileNet solutions for help in managing their mission-critical content and processes.

Headquartered in Costa Mesa, Calif., the Company markets its innovative ECM solutions in more than 90 countries through its own global sales, professional services and support organizations, as well as via its ValueNet®
Partner network of resellers, system integrators and application developers.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This release may contain forward-looking statements that involve risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “may,” “will” and similar expressions are intended to identify forward-looking statements. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are FileNet’s ability to develop, complete, introduce, market, distribute and gain market acceptance for its products and technologies in a timely manner; announcements of technological innovations, new products or product enhancements by FileNet or its competitors; general market conditions; and other factors detailed in the FileNet’s filings with the Securities and Exchange Commission, including its recent filings on Forms 10-K and 10-Q.

FileNet and ValueNet are registered trademarks of FileNet Corporation. Microsoft, Visual Studio and SharePoint are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. All other company or product names referenced in this release may be trademarks or registered trademarks of their respective owners.

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