Bluestone Announces Public Offering

Bluestone Software, Inc. announced today the initial public offering of 4,000,000 shares of its common stock at $15 per share. Bluestone shares commenced trading on the Nasdaq National Market under the symbol "BLSW" on September 24. All of the shares are being offered and sold by Bluestone.

The offering is being managed by Deutsche Banc Alex.Brown, SoundView Technology Group, C.E. Unterberg, Towbin and Legg Mason Wood Walker Incorporated. Certain selling stockholders have granted the underwriters a 30-day option to purchase up to 600,000 shares to cover over-allotments, if any. A prospectus relating to these securities may be obtained from Deutsche Banc Alex.Brown (Baltimore).

Bluestone Software, Inc. is a performance leader in Enterprise Interaction Management software. Companies deploying Internet Commerce applications depend on Bluestone Sapphire/Web and Bluestone XML Suite Application Server frameworks to integrate business applications into Web-enabled environments, manage information interactions, and exchange data with employees, partners and customers.