Press Release - Silknet Software

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Cisco Systems and Silknet Software Integrate Networking and Software Systems to Simplify Building an E-business

Two Industry Leaders Partner on E-business and Networking Solutions

MANCHESTER, N.H.--Nov. 15, 1999-- Silknet Software, Inc. (NASDAQ:SILK - news), a leading provider of customer-centric e-business applications, today announced an alliance with Cisco Systems, Inc. (NASDAQ:CSCO - news), the worldwide leader in networking for the Internet. Under the agreement, Silknet will team with Cisco to offer corporations the network foundation and Web-architected application software for building an industry leading e-business solution.

As part of the joint technology efforts, Silknet will integrate its market leading Silknet eBusiness System(tm) with Cisco networking solutions. These include policy-based network management, directory services, networking services, security, quality of service, load balancing and other relevant existing and emerging technologies. In addition, Cisco and Silknet will collaborate in pursuing joint business opportunities.

With the combination of the Silknet eBusiness System, Silknet eService(tm), Silknet eSales(tm) and Silknet eCommerce(tm) applications and Cisco networking solutions, corporations can deploy complete e-business solutions to improve customer acquisition and customer retention. The result--a more efficient customer-centric on-line business--will enable corporations to improve customer loyalty, create higher customer satisfaction, increase revenues and reduce costs.

``Silknet is a leader in providing high performance, enterprise-class e-business solutions to Global 2000 accounts,'' said Sue Bostrom, vice president of the Internet Business Solutions Group at Cisco Systems. ``We believe the combination of Cisco and Silknet will offer corporations a robust new world customer care solution on which to build their e-business.''

``Cisco is at the very foundation of the Internet,'' said Jay Wood, president of Silknet. ``Cisco's products and services are the industry standard for Internet and corporate communications and have set a benchmark for reliability and performance. We are excited about working with Cisco to help shape the digital landscape of today and the future.''

About Silknet's E-business Solutions
Silknet eBusiness System is a Web-based platform for building, deploying and configuring customer-centric e-business applications. Silknet eService, built upon Silknet eBusiness System, is a customer service application that enables a company to provide customer self-service and collaboration using the Web, email, the telephone and other messaging media. Silknet eCommerce, a Web-based solution for building and managing an electronic storefront, is the first e-commerce solution to integrate e-service.

About Silknet Software, Inc.
Silknet Software, Inc. (NASDAQ:SILK - news) provides the industry's leading customer-centric e-business applications and systems for Global 2000 and dot.com companies such as Office Depot, Microsoft, Priceline.com, Beyond.com, Sprint, Utility.com, Inacom, KPMG and Bell Canada. Built from the ground up with Web technologies and standards, Silknet's software allows companies to build strong customer relationships through personalized marketing, sales, electronic commerce and customer support services. Silknet's approach integrates all customer interactions and data whether across the Web, by phone, through e-mail or in person, providing the company's agents, partners and the customers with a single view of their relationship. Silknet is headquartered in Manchester, N.H., with offices across North America and in Europe. Additional information can be obtained on the World Wide Web at http://www.silknet.com or by calling Silknet at (603) 625-0070.

Silknet eService, Silknet eCommerce, Silknet eSales and Silknet eBusiness System are trademarks of Silknet Software, Inc. All other trademarks are the property of their respective holders.

Any statements contained in this press release that do not describe historical facts, such as the statements about Silknet's customer relationships, may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. There can be no assurance that these customer relationships will provide future revenues.

The factors that could cause actual future results to differ materially from current expectations include the following: fluctuations in customer demand; the Company's ability to manage its growth; the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the Company's markets; the risks associated with competition; the risks associated with international sales as the Company expands its markets; and the ability of the Company to compete successfully in the future, as well as other risks identified in the Company's Securities and Exchange Commission filings, including but not limited to those appearing under the caption ``Risk Factors'' in the Company's Prospectus dated May 5, 1999.

Contact:

Editorial Contact:
Patrick J. Scannell, Jr.
Silknet Software
(603) 625-0070
pscannell@silknet.com

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