Documentum Reports 31%
Year-Over-Year Total Revenue Growth

Fourth Consecutive Record Quarterly Revenue

PLEASANTON, Calif., Oct. 21 /PRNewswire-FirstCall/ -- Documentum, Inc. (Nasdaq: DCTM), the leading provider of enterprise content management (ECM), today announced financial results for the third quarter ended September 30, 2003.

Total revenue for the third quarter 2003 was $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, license revenue accounted for $36.0 million and service revenue accounted for $37.5 million.

On a GAAP basis, net income for the third quarter of 2003 was $0.9 million, compared to a net income of $2.0 million reported for the third quarter of 2002 and a net income of $0.6 million for the second quarter of 2003. On a non-GAAP basis, net income for the third quarter 2003 was $5.7 million, compared to net income of $2.0 million in the third quarter of 2002 and net income of $3.6 million in the second quarter of 2003.

On a GAAP basis, the company reported diluted earnings per share for the third quarter of $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. On a non-GAAP basis, diluted earnings per share for the third quarter was $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.

The non-GAAP net income and diluted earning per share financial measures set forth above exclude charges for amortization of stock-based compensation, purchased intangibles, and restructuring charges that are otherwise normally required by GAAP and are included in the comparable GAAP figures. The charges for amortization of stock-based compensation, purchased intangibles, and restructuring charges relate to the company's acquisition activity conducted in prior periods. These charges have been excluded from non-GAAP net income and 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 that exclude charges for amortization of stock-based compensation and purchased intangibles to the investment community, and we believe the inclusion of these 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.

On October 14, the company also announced that EMC Corporation (NYSE: EMC) has signed a definitive agreement to acquire Documentum for $1.7 billion. For additional information, visit www.documentum.com.

"With eight consecutive quarters of total revenue growth, Documentum continues to gain market recognition as the leader in Enterprise Content Management. Now, in a bold move to further strengthen that lead through the recently announced pending acquisition by EMC, Documentum and EMC will deliver solutions that combine intelligent information storage management with a full range of enterprise content management services, for complete Information Lifecycle Management (ILM). We believe that ILM is the next trend in content management and that it will drive the next major wave of growth in the market," said Dave DeWalt, president and CEO of Documentum.

Third Quarter 2003 Results Conference Call and WebCast
Investors can listen to a teleconference of Documentum's Third Quarter financial results on Tuesday, October 21, 2003, at 2:00 p.m. PDT (5:00 p.m. EDT) by calling 1-913-981-5533 (pass code 575805). An accompanying slide presentation (no audio) will be WebCast simultaneously with the live teleconference and may be accessed on Documentum's investor relations web page at -- www.documentum.com/news_events/investor

The dial-in number for the audio-only replay is 1-719-457-0820 (pass code 575805). The replay and conference call slide presentation will be accessible on the company's investor relations web page shortly after the conclusion of the live event.

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.

Contacts
Bonnie Harris of B3 Communications
+1-415-332-5816
bharris@b3communications.com
or
IR: Patricia Menchaca of Documentum
+1-925-600-5593
patm@documentum.com