Documentum Beats Q3 Consensus Revenue Estimates

Marks Eighth Consecutive Quarter
of Growth and Fourth Consecutive
Record Quarterly Revenue

PLEASANTON, Calif., Oct. 14 /PRNewswire-FirstCall/ -- Documentum (Nasdaq: DCTM), the leading provider of enterprise content management (ECM) software, today announced preliminary financial results for its third quarter ended September 30, 2003. The company anticipates revenue for the third quarter of approximately $73.5 million, an increase of 31% over revenue of $56.3 million reported for the third quarter of 2002, and an 8% sequential increase over $68.2 million reported for the second quarter of 2003. Additionally, the company reported that of the $73.5 million in total revenue, approximately $36.0 million was license revenue, and $37.5 million was service revenue.

On a GAAP basis and based on preliminary financial data, the company estimates diluted earnings per share for the third quarter of approximately $0.02 as compared to diluted earnings per share of $0.05 reported for the third quarter of 2002 and $0.01 for the second quarter of 2003. Based on preliminary financial data, the company estimates non-GAAP diluted earnings per share for the third quarter of approximately $0.11 as compared to diluted earnings per share of $0.05 reported for the third quarter of 2002 and non-GAAP diluted earnings per share $0.07 for the second quarter of 2003.

Non-GAAP diluted earnings per share excludes the charges for amortization of stock-based compensation and purchased intangibles, which accounted for non-GAAP diluted earnings per share of approximately $0.02 and $0.07, respectively. The charges for amortization of stock-based compensation and purchased intangibles relate to the company's acquisition activity conducted in prior periods. These charges have been excluded from non-GAAP earnings as management does not believe that they are representative of underlying trends in the company's performance and their exclusion provides the investor with additional information to more readily compare the company's results over multiple periods. In addition, the company has historically reported non-GAAP financial results to the investment community, and we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. Finally, these non-GAAP results are the primary metric used by management for internal planning and forecasting the company's financial results in future periods. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of the company's GAAP and non-GAAP financial results is attached at the end of this press release.

The company also announced that EMC Corporation (NYSE: EMC) has signed a definitive agreement to acquire Documentum. For additional information, visit www.documentum.com.

Conference Call & WebCast
EMC President and CEO Joe Tucci, Documentum President and CEO Dave DeWalt, and EMC Executive Vice President and Chief Financial Officer Bill Teuber will discuss the acquisition on a conference call for financial analysts, investors and the news media at 8:30 a.m. EDT, today. The dial-in numbers are 877-716-4284 (domestic) or 630-395-0047 (international). The pass code to access the call is EMC. For the general public, the call will be WebCast with supporting slides at EMC and Documentum's home pages, www.emc.com and www.documentum.com. A replay of the call will be available approximately one hour following the call at 800-947-6436 (domestic) or 402-220-3494 (international).

About Documentum
Documentum provides enterprise content management (ECM) solutions that enable organizations to unite teams, content and associated business processes. Documentum's integrated set of content, compliance and collaboration solutions support the way people work, from initial discussion and planning through design, production, marketing, sales, service and corporate administration. With a single platform, Documentum enables people to collaboratively create, manage, deliver and archive the content that drives business operations, from documents and discussions to email, Web pages, records and rich media. The Documentum platform makes it possible for companies to distribute all of this content in multiple languages, across internal and external systems, applications and user communities. As a result, Documentum's customers, which include thousands of the world's most successful organizations, harness corporate knowledge, accelerate time to market, increase customer satisfaction, enhance supply chain efficiencies and reduce operating costs, improving their overall competitive advantage. For more information, visit Documentum on the Web at www.documentum.com.

                                  Three months ended September 30, 2003
                                                unaudited

                                       Amortization Amortization
                                         Purchased   Stock Based
                                  GAAP  Intangibles Compensation  Non-GAAP

  Net Income                      880      3,834          984       5,698

  Basic income per share        $0.02      $0.07        $0.02       $0.11
  Diluted income per share      $0.02      $0.07        $0.02       $0.11

  Shares used to
   compute income per share
  Basic                        49,866                              49,866
  Diluted                      53,044                              53,044

Contacts
Press
Kathleen O'Boyle
+1-925-600-6727
kathleen.oboyle@documentum.com
or
Investors
Janet Scott
+1-925-600-6474
janet.scott@documentum.com