FileNet's Shareholders Approve Merger Agreement With IBM

Transaction Expected to Close in October 


COSTA MESA, Calif., Oct. 3  /PRNewswire-FirstCall/ -- FileNet Corporation (NASDAQ:FILE) announced that its shareholders of record have voted on the plan to be acquired by IBM (NYSE:IBM), satisfying another closing condition of the transaction.  During a special meeting held today at the Company's headquarters, shareholders adopted the Agreement and Plan of Merger, dated August 9, 2006 and approved the merger.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20000207/FILENETLOGO)

The Company previously announced that on September 21, 2006, the waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to IBM's proposed acquisition of FileNet had terminated.  The acquisition, announced August 10, 2006, remains subject to foreign antitrust clearances.  The Company currently expects the transaction to close during October 2006.

About FileNet

FileNet Corp. offers enterprise software and services that help customers make better decisions, faster.  A leader and innovator in Enterprise Content Management (ECM), Business Process Management (BPM) and Compliance solutions, FileNet simplifies critical and everyday decision-making processes, giving organizations a competitive advantage.  Since the company's founding in 1982, more than 4,300 organizations -- including more than three quarters of the Fortune 100 -- have taken advantage of FileNet solutions for help in managing their mission-critical content and processes.  For more information about FileNet, go to: http://www.filenet.com/.

Forward-Looking Statements: This document includes statements that do not directly or exclusively relate to historical facts.  Such statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding the expected closing of the proposed acquisition of FileNet by IBM.  These statements are based on the current expectations of FileNet management.  There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this document.  For example, (1) the companies may be unable to obtain other regulatory approvals required for the transaction, and (2) conditions to the closing of the transaction may not be satisfied.  Additional factors that may affect the forward looking statements herein are set forth in FileNet's proxy statement filed with the Securities and Exchange Commission ("SEC") on September 5, 2006.

Note to editors: FileNet and ValueNet are registered trademarks of FileNet Corporation.  All other company or product names referenced in this release may be trademarks or registered trademarks of their respective owners.

  Investor Contact:              Press Contact:
  Greg Witter                    Rick Myllenbeck
  Sr. Director of Finance        Director of Public Relations
  FileNet Corporation            FileNet Corporation
  Phone: [phone]            714-327-5707
  Email:      

http://www.newscom.com/cgi-bin/prnh/20000207/FILENETLOGO

http://photoarchive.ap.org/

DATASOURCE: FileNet Corporation



CONTACT:  Investors, Greg Witter, Sr. Director of Finance,

[phone], , or Rick Myllenbeck, Director of Public

Relations, [phone], , both of FileNet

Corporation



Web site:  http://www.filenet.com/ 

Copyright