Payless.com Extends Payless ShoeSource Brands and Shares Info on the Web by Leveraging XML

SUNNYVALE, Calif. - August 7, 2000 - Interwoven, Inc. (Nasdaq: IWOV), the leading provider of enterprise-class content management solutions, today announced that PaylessShoeSource, Inc. (NYSE: PSS), North America's largest family footwear retailer, will be using Interwoven TeamSite to manage content for its Web site www.payless.com .

Payless has selected Interwoven TeamSite because its open, standards based architecture has the features needed as well as the flexibility to easily integrate with its existing infrastructure. XML-based TeamSite will help Payless.comSM extend Payless ShoeSource brands and share XML content with other Web sites. In addition, Interwoven's established partnership with IBM provides for a fast, reliable integration with the IBM WebSphere Commerce engine that Payless.com currently uses. The pre-established integration between TeamSite and IBM WebSphere will simplify IBM Global Services' configuration for Payless.com, which will save Payless.com the time and money associated with custom integration work.

TeamSite's advanced workflow engine will allow multiple Payless.com content contributors to work in parallel, and then route the new content to a single person for approval. In this way, workflow both increases productivity while also ensuring quality control and protection of Payless' brands.

"Interwoven has a proven, open solution that will easily integrate with our existing infrastructure," said Rhonda Wells, director of e-commerce for Payless ShoeSource. "In addition, TeamSite's workflow allows us to expand our contributor base and increase the frequency of site updates, in order to give our customers current, accurate information on our products."

Payless.com was designed to complement the company's 4,629 Payless ShoeSource locations in North America. Interwoven's content management software, TeamSite, will further integrate Payless.com with brick-and-mortar Payless ShoeSource stores and allow customers to shop for Payless' brands anytime.

"Payless ShoeSource has been very successful at selling shoes in its brick-and-mortar stores, and will use Interwoven TeamSite to further its success online," said Joe Ruck, vice president of marketing at Interwoven, Inc. "Interwoven TeamSite's compatibility with the existing Payless.com infrastructure will allow the company to expedite implementation, bringing customers the consistent Payless ShoeSource look and feel they are used to."

Payless ShoeSource, Inc. is North America's largest family footwear retailer. The company operates 4,629 Payless ShoeSource stores that offer quality family footwear at affordable prices. This store count includes 162 Payless ShoeSource shoe departments operating in ShopKo locations. Payless also operates 239 Parade stores featuring fashionable mid-priced women's footwear. In addition, customers can buy shoes over the Internet through Payless.com, at www.payless.com .

Interwoven, Inc. (NASDAQ: IWOV) is the leading provider of enterprise-class Web content management software. Its flagship product, TeamSite, controls the development, management and deployment of business-critical Web sites. As the platform for eBusiness, Interwoven enables electronic commerce, customer relationship management, supply chain management and knowledge management for Web leaders and Fortune 1000 companies moving to the Web. TeamSite is available for both the Sun Solaris operating system and Microsoft Windows platform. For more information on the company and its software solutions, visit the Interwoven Web site at www.interwoven.com.tw or e-mail info@interwoven.com