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FileNet Reports Second Quarter 2004 Results

July 20, 2004 --- FileNet Corporation (Nasdaq: FILE), a leading provider of Enterprise Content Management (ECM) solutions, announced financial results for its second quarter ended June 30, 2004.

Total revenues for the second quarter of 2004 were $94.1 million compared to total revenues of $87.1 million for the same period in 2003 and $99.5 million for the first quarter of 2004.  Software revenues for the second quarter of 2004 were $32.7 million compared to $33.6 million for the same period in 2003 and $41.4 million for the first quarter of 2004.  Net income was $2.2 million in the second quarter of 2004, compared to net income of $1.5 million in the second quarter of 2003 and $4.0 million in the first quarter of 2004. Earnings per basic and diluted share were $0.06 and $0.05, respectively, for the second quarter of 2004, compared to earnings per basic and diluted share of $0.04, for the second quarter of 2003.  For the first quarter of 2004, earnings per basic and diluted share were $0.10.

“With today’s introduction of version 3.0 of our ECM platform, FileNet P8, we continue to extend our product leadership in the Enterprise Content Management market,” said Lee Roberts, chairman and CEO of FileNet. “By integrating process management capabilities throughout the entire breadth of our platform, we have differentiated our ECM offering from the market. With FileNet P8, customers can combine comprehensive process management, integration capabilities and rich content management to drive better, faster decision-making throughout their business.”

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Please click here for complete release including tables.
 
About FileNet
FileNet Corporation 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 4,000 organizations, including more than three quarters 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.

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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will” and variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference for FileNet include, but are not limited to, the volume of our sales and pricing concessions on volume sales; our ability to specify, develop or acquire, complete, introduce, market, distribute and gain market acceptance for new products and technologies in a timely manner; the mix of products and services sold by us; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; our ability to control expenses; announcements of technological innovations, new products or product enhancements by the company or its competitors; the nature of the Enterprise Content Management market; key management changes; changes in joint marketing and development programs; developments relating to patents or other intellectual property rights or disputes; changing relationships with customers, distributors, suppliers and strategic partners; potential contractual or employment issues; our ability to integrate acquired businesses; and general conditions in the worldwide economy and the software/technology sector and other factors. Our Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Forms 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Note to editors: FileNet and ValueNet are registered trademarks of FileNet Corporation. All other company or product names referenced in this release may be trademarks or registered trademarks of their respective owners.

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For further press information please contact Kim van Bokhoven at LEWIS, the IT PR agency:
Tel: +31 (0) 40 235 46 00
Fax: +31 (0) 40 235 46 01
Email: kimv@lewispr.com
www.lewispr.com

For information on FileNet, please contact Melanie Bessem, FileNet.:
Tel: +31 (0)20 543 13 45
Email: mbessem@filenet.com
www.FileNet.com


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