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SUNNYVALE, Calif., January 28, 2010 — Ariba, Inc. (Nasdaq: ARBA), the leading spend management solutions provider, today announced results for the first quarter of fiscal year 2010 ended December 31.

Quarterly Financial and Operational Highlights:

* Total revenues of $85.7 million
* GAAP EPS of $0.03 and non-GAAP EPS of $0.19 per fully-diluted share
* Subscription software revenue of $41.2 million, up 15% year-over-year
* 12-month subscription software backlog of $139 million, up 10% year-over-year
* Cash flow from operations of $10.5 million, ending cash and investments of $199.5 million
* On-demand deals up 76% year-over-year

“As evidenced by our strong first quarter results, Ariba is delivering solutions that meet customer demands for fast results, low risk and more variable cost structures,” said Bob Calderoni, Chairman and CEO, Ariba. “Customers are increasingly turning to Ariba for their business needs and our solutions are helping to drive their recovery.”

Results for the First Quarter of Fiscal Year 2010

Revenue:

Total revenues for the first quarter of fiscal year 2010 were $85.7 million, as compared to $86.1 million for the first quarter of fiscal year 2009. Subscription and maintenance revenues for the quarter were $58.4 million, as compared to $54.1 million for the first quarter of fiscal year 2009. Within subscription and maintenance revenues, subscription software revenue was $41.2 million for the first quarter of fiscal year 2010, as compared to $35.9 million for the first quarter of fiscal year 2009. Services and other revenues were $27.3 million, as compared to $32.0million for the first quarter of fiscal year 2009.

Earnings Per Share:

Net income for the first quarter of fiscal year 2010 was $2.2 million, or $0.03 per fully-diluted share as compared to net income for the first quarter of fiscal year 2009 of $3.4 million, or $0.04 per fully-diluted share. Net income for the first quarter of fiscal year 2010 included charges of $1.4 million for amortization of intangible assets and $13.5 million for stock-based compensation. Excluding these items, Non-GAAP net income for the quarter was $17.2 million, or $0.19 per diluted share.

Balance Sheet and Cash:

Total cash, investments and restricted cash were $199.5 million at December 31, 2009, up $4.1 million from September 30, 2009. Net cash flow from operations for the three months ended December 31, 2009 was $10.5 million, as compared to $10.8 million for the three months ended December 31, 2008. Accounts receivable, on an average days-sales-outstanding basis, were 21 days for the first quarter of fiscal year 2010, as compared to 29 days for the first quarter of fiscal year 2009, and down two days from the previous quarter. Total deferred revenues were $119.5 million at December 31, 2009, up $9.0 million from September 30, 2009.

Customer Acquisition and Transactions for the Quarter:

During the quarter, 248 companies of all sizes purchased Ariba solutions, including: Avon Products, Inc., Brocade Communications Systems, Inc., Coach, Inc., ConocoPhillips Company, Pfizer Inc., PTT Public Limited Company, The Royal Bank of Scotland Group plc, Sempra Energy and Tyco International Ltd. Ariba added 30 new customers in the first quarter of fiscal year 2010 and closed 11 transactions over $1 million, including six deals with a software component of greater than $1 million. On-demand product deals totalled 192.

Conference Call Information

Ariba will hold a conference call today at 5:00 p.m. ET / 2:00 p.m. PT to discuss its results for the first quarter of fiscal year 2010. To join the call, please dial (877) 407-8031 in the United States and Canada, or (201) 689-8031 if calling internationally. The conference call also will be webcast live and can be accessed on the investor relations section of the company’s website at www.ariba.com.

A replay of the conference call will be available for two weeks by calling (877) 660-6853 in the United States and Canada or (201) 612-7415 internationally and entering account number: 286 and conference ID number: 341721.

About Ariba, Inc.

Ariba, Inc. is the leading provider of on-demand spend management solutions. Our mission is to transform the way companies of all sizes, across all industries, and geographies operate by delivering software, service, and network solutions that enable them to holistically source, contract, procure, pay, manage, and analyze their spend and supplier relationships. Delivered on demand, our enterprise-class offerings empower companies to achieve greater control of their spend and drive continuous improvements in financial and supply chain performance. More than 1,000 companies, including more than half of the companies on the Fortune 500, use Ariba solutions to manage their spend from sourcing and orders through invoicing and payment. For more information, visit www.ariba.com.

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