October 7, 2002

Acquisition of Application Composer

DigiSlice Corporation and WebGain, Inc., today announced that they have executed an agreement for the sale of all right, title, and interest in, and to the WebGain Application Composer product to DigiSlice.

DigiSlice plans to continue to develop advanced technology that allows the ability to develop, manipulate, add, modify and integrate enterprise software faster, better, and at a significant lower cost. Financial details of the acquisition were not disclosed, and it is anticipated that DigiSlice resellers will provide technical support to customers as part of the new business strategy.

"DigiSlice has the vision and technical expertise to provide further product development associated with this important component technology," said Robert Melendres, WebGain's President and General Counsel. "WebGain is confident that this sale is in the best interest of current Application Composer customers and is committed to working with DigiSlice to provide a smooth transition for those customers."

DigiSlice plans for the Application Composer technology include a multi-level strategy of building relationships with OEMs and ISV partners to market the Application Composer product, while providing their Enterprise Component Integration (ECI) technology as an integrated suite of application infrastructure software products in support of broader application integration strategies.

"We believe that the software application development market is on the verge of broad based adoption of component assembly, and DigiSlice intends to energize the value of the Application Composer technology for the acceleration of enterprise software development," said Joonees K. Chay, DigiSlice's CEO. "Our ability to develop, manipulate, add, modify, and integrate applications in real-time will give us a competitive advantage in working with global software component development partners, as well as ISV and application server partners."

About Application Composer

Application Composer is a Java?-based Component Integration Development Environment (CIDE) with a graphical user interface that facilitates the manipulation of complex program code for the assembly of reusable components into enterprise software applications. Developers utilize pre-built components - garnered from internal or external repositories - and assemble them into enterprise Java applications. No Java programming expertise is required to use the software which extends the potential base of developers who can effectively utilize the product in the development of Java-based applications. Leveraging reusable components such as existing servlets, JavaServer Pages?, JavaBeans?, Enterprise JavaBeans? (EJB?), and Java classes, dramatically reduces application integration and customization time.

About DigiSlice

DigiSlice's Enterprise Component Integration (ECI) technology provides the component-based application infrastructure foundation, simplifying the customization and integration process while decreasing the costs of application development and maintenance. This solves the biggest problems facing operations today: the dependency on inflexible software applications that are costly to integrate and customize, and the inability to adapt to rapidly changing business environments. DigiSlice provides an integrated suite of ECI enabled application infrastructure software products, ECI-EAB (Enterprise Applications Builder) - - pronounced "easy-app", that are 'pre-bundled' with application-specific software components to rapidly develop and customize industry-specific solutions for CRM, EIP, ERP, KM, BPM, and SCM.

About WebGain

WebGain has completed further consolidation of the company and offices and has moved operations from its previous location in San Jose, California to Morgan Hill, California. Customers can find WebGain's new address, updated contact and support information, at www.WebGain.com

Customer Support information can be found at www.WebGain.com/support A Q&A document associated with this announcement can be found at at their web site.

Additional information about Application Composer can be found at http://www.digislice.com/webgain

DigiSlice, the DigiSlice logo, Application Composer, AppComposer, ECI-EAB, Enterprise-Application-Builder, easy-app, Digital Asset Factory, DAF, Enterprise Component Integration, ECI, ECI-Spin, ECI-Applications, ECI-Platform are trademarks of DigiSlice Corporation in the US and other countries. Other products, names, or logos may be the property of their respective owners.