Plumtree Software Announces Preliminary Second Quarter 2005 Results

Plumtree Software (Nasdaq:PLUM) today announced
preliminary results for its second quarter ended June 30, 2005.
Revenue for the second quarter of 2005 is expected to be $22.5
million, of which $7.4 million relates to license revenue and $15.1
million relates to services and maintenance revenue.
   "Our second quarter results were impacted by several deals that
slipped and did not close by the end of quarter. While I am
disappointed in our second quarter revenue performance, we see
increasing market awareness of the opportunity for composite
applications, and believe Plumtree is well-positioned to benefit from
the growing demand for these solutions," said John Kunze, CEO of
Plumtree Software.
   Plumtree Software also announced that it is conducting an internal
investigation into the company's potential non-compliance with the
"Price Reductions" clause of its contract with the U.S. General
Services Administration (GSA). The Company is doing this after
becoming aware in February 2005, that in connection with certain sales
entered into during the fourth quarter of 2004, it did not comply with
the "Price Reductions" clause of the GSA contract. Plumtree Software
expects to take a charge or disclose a contingent liability range
associated with such investigation, which could impact the second
quarter of 2005. Plumtree Software also announced that the GSA is
considering extending its existing contract with the company. In
connection therewith, the GSA has elected to conduct a pre-award audit
of certain commercial sales practice pricing information of the
company.

   PRELIMINARY EARNINGS CONFERENCE CALL

   A conference call with company management will be held at 8:30
a.m. ET (5:30 a.m. PT). Details of the conference call are as follows:
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DATE:     Monday, July 18, 2005

TIME:     8:30 a.m. Eastern Time
          5:30 a.m. Pacific Time

Dial IN:  Domestic: 888-793-1858
          International: 210-234-8001
          Passcode: Plumtree

REPLAY
DIAL IN:  Domestic: 866-431-7950
          International: 203-369-0981
          Passcode: Plumtree
*T

   The conference call will also be simulcast over
www.plumtree.com/ir. Please go to this site 15 minutes before the
start of the call to register, and to install any necessary audio
software. For those who cannot listen to the live broadcast, a replay
will be available shortly after the call.

   REGULAR EARNINGS CONFERENCE CALL

   Plumtree will release its second quarter 2005 results on August 8,
2005, at approximately 4:05 p.m. ET (1:05 p.m. PT). A conference call
with company management will be held following the announcement at
5:00 p.m. ET (2:00 p.m. PT). Details of the conference call are as
follows:
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DATE:     Monday, August 8, 2005

TIME:     5:00 p.m. Eastern Time
          2:00 p.m. Pacific Time

DIAL IN:  Domestic: 800-857-9600
          International: 210-234-0000
          Passcode: Plumtree

REPLAY
DIAL IN:  Domestic and International: 866-432-8780
          Passcode: Plumtree
*T

   Additional investor information can be accessed at
www.plumtree.com.

   Safe Harbor Statement and Caution

   This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements include: statements
regarding our expected revenue for the second quarter of 2005,
increasing market awareness of the opportunity for composite
applications and our ability to benefit from growing demand for these
solutions, the possible extension of the GSA contract and the charge
that we may be required to take as a result of our audit of the GSA
contract and the separate GSA audit. These forward looking statements
are subject to numerous risks and uncertainties and actual results may
vary materially depending on our actual financial results for the
second quarter of 2005, our auditor's review of our financial results
for the second quarter of 2005, the outcome of the GSA audit and our
own internal investigation in relation to the GSA contract. Other
risks and uncertainties associated with increasing market awareness of
the opportunity for composite applications and our ability to benefit
from growing demand for these solutions include risks associated with
adverse conditions in worldwide IT spending trends; the impact of
increasing competition; the success of major version releases, new
platforms, applications and tools; the ability of our customers to
deploy our products successfully and their willingness to act as
references; changes in the needs and priorities of existing and
potential customers; failure to manage technological change; and those
other risks and uncertainties contained in the Company's most recent
Annual Report filed with the Securities and Exchange Commission
("SEC") on Form 10-K, and all subsequent SEC filings. Copies of
filings made with the SEC are available through the SEC's electronic
data gathering analysis retrieval system (EDGAR) at www.sec.gov. We
undertake no obligation following the date of this release to update
or revise our forward-looking statements or to update the reasons
actual results could differ materially from those anticipated in
forward-looking statements. We caution you not to place undue reliance
upon any such forward-looking statements, which speak only as of the
date such statements are made. Past performance is not indicative of
future results. We cannot guarantee any future operating results,
activity, performance or achievement.

   About Plumtree Software

   Plumtree Software is a technology leader, providing enterprise
solutions to bridge disparate work groups, IT systems and business
processes with its cross-platform portal. Plumtree Software continues
to innovate, offering rich service-oriented environments to deliver
composite applications that give customers the freedom and flexibility
to support advanced user needs and business processes. Plumtree
Software's solutions provide significant business value to more than
21 million users worldwide. Customers include Airbus, Mazda, Pratt &
Whitney and U.S. Navy. For more information, visit www.plumtree.com.

   Plumtree is a registered trademark of Plumtree Software, Inc.
and/or its subsidiaries in the U.S. and/or other countries. All other
registered and unregistered trademarks in this document are the sole
property of their respective owners.