Quarter Ended June 30, 2001

Total Revenue $83.6 Million

Core Operating Loss $(14.3) Million

Core EPS $(0.04)

Six Months Ended June 30, 2001

Total Revenue $173.8 Million

Core Operating Loss $(22.5) Million

Core EPS $(0.06)

Non-recurring charges in the quarter ending June 30, 2001 include a restructuring charge for cost-reduction efforts that the Company announced in April as well as the write-down of certain equity investments.

In the second quarter, Vignette met its revenue target and beat its operating targets. Despite a challenging economic environment, we added more customers than last quarter, increased our initial deal size and brought DSO’s down. More importantly, we gained market share relative to every single competitor in our sector, said Greg Peters, Chairman and CEO. With $413 million in cash, we are well-capitalized to extend our leadership position.

Vignette added 51 customers including American Automobile Association, Carrier Corp., Deloitte and Touche, FHC Health Systems, Goodrich Corporation, Guaranty Bank, Herman Miller, IBM, Intersil, Johnson Matthey PLC, Ketchum, Nissan, Pacificare, Scandinavian Airlines, Singapore Cablevision, State of Michigan, State of Ohio, and World Bank. Existing customers that made significant follow on product commitments during the quarter include Alcon Laboratories, AIG, Axel Springer Verlag, Bank of Montreal, Baptist Health Systems, Barclays Bank, British Telecom, Caterpillar Inc., Cathay Pacific Airways, Conseco, Diageo, EW Scripps, Fujitsu, HarborFreight, Lufthansa, Motorola, UBS AG and United Healthcare.

During the second quarter of 2001, Vignette introduced its first packaged applications. In May, Vignette launched the Vignette Enterprise Application Portal, a J2EE standards based, out-of-the-box solution that allows companies to deploy enterprise-level portals. Since its debut, ten leading enterprises have signed on as early-adopter customers.

Also during the quarter, the Company launched Vignette Financial Advisor Suite, a packaged application allowing financial firms to establish and maintain profitable online relationships between their customers and advisors, and Vignette Merchant Suite, a rich packaged commerce application providing functionality including item and product management, cataloging, pricing and availability, and customer analysis.

SOURCE: COMPANY PRESS RELEASE