STERLING COMMERCE POSITIONED IN LEADER QUADRANT IN B2B GATEWAY PROVIDERS MAGIC QUADRANT FOR SECOND QUARTER 2005

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Sterling Commerce, one of the world's largest providers of multi-enterprise collaboration software and services, announced today that it is positioned in the leader quadrant in Gartners B2B Gateway Providers 2Q05 Magic Quadrant (1). Gartner Inc.'s Magic Quadrant positions vendors in a particular market segment based on their vision and ability to execute that vision. Leaders are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market.

According to the report, Vendors in the Leaders quadrant are most likely to have high revenue in this market, high market share and products that are of interest to a wide audience. Further, Gartner estimates the current B2B gateway market to be approximately $200 million to $250 million, growing conservatively between 5 percent and 8 percent year over year.

Enterprises are increasing investment in B2B solutions that can extend business value to customers and critical business partners, and we believe the B2B Magic Quadrant provides the first real framework to help these enterprises establish evaluation criteria, said Nolan Rosen, VP global marketing, Sterling Commerce. As part of our Multi Enterprise Services Architecture (MESA), Sterling Commerce provides B2B and application integration within an SOA construct so that enterprises can simply and rapidly deploy services externally to their trading communities, reducing the time to value for these companies. GIS 4.0 provides B2B communications and management, translation, enterprise integration, business process management (BPM) and business activity monitoring (BAM) in one comprehensive suite.

According to the Magic Quadrant Criteria for B2B Gateway Providers, 2Q05, by Frank Kenney, principal analyst, Gartner, The second-quarter 2005 B2B gateway Magic Quadrant rating process involves primary research via technology analysis, product demonstrations, direct client feedback to analysts throughout the previous year, and references supplied by the vendors. The analysis involves weighting all sources of information, with a heavy emphasis on direct feedback from our clients. As a result, many of the individual categories defined in this research have client reference criteria factored into the analysis and evaluation. Gartner considers client feedback to be one of the most-critical measures of the potential of a B2B gateway vendor, and this criterion continues to influence positioning.

The horizontal axis of the Magic Quadrant represents the vendors completeness of vision with respect to the requirements and conditions that characterise the B2B gateway market across the following criteria:

Trading-Partner Management

Secure Communications

Workflow

Business Activity and Event Management

Adapter Technologies

Transformation

Openness and Standards Compliance

Quality of Service

The vertical axis rates the vendors on their ability to execute their vision that takes into account the technical expertise, technology assets and product features, and financial and marketing resources the vendor allocates to the development and support of the product, across the following criteria:

Corporate Viability

Financial and Management Commitment

Pricing

Installations

Support

Geographic Reach

Partnerships

Professional Services

(1) Frank Kenney, B2B Gateway Providers 2Q05 Magic Quadrant, Gartner, Inc., 5 April 2005

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