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County Government Saving 13,000 Man-hours Annually with Verity LiquidOffice and TeleForm

Automation of Criminal Justice, HR and Expense Reporting Activities Drives Significant Cost Savings for Tennessee's Shelby County

SUNNYVALE, Calif - 2004-10-26 - Verity Inc. (NASDAQ: VRTY), a leading provider of enterprise software that enables organizations to maximize the return on their intellectual capital investment, today announced that the government of Shelby County, Tennessee, which includes the city of Memphis, will deploy a Verity® LiquidOffice™ Web-based process automation solution across all departments and agencies, to serve its 6,500+ employees. In addition, Verity® TeleForm®, a high-volume content capture solution, will be implemented in concert with LiquidOffice, and independently for several purposes within the county government.

Verity's reseller partner, CIMSgts, has and will play a critical role in deploying Verity LiquidOffice to automatically manage the routing, tracking and approval processes for electronic forms associated with employee leave requests. The county's department of criminal justice will utilize the software as well. Verity TeleForm will be integrated with LiquidOffice to automate expense report filing and processing, and employment application processing. The TeleForm application that CIMSgts has implemented for HR will ensure government managers who interview potential employees comply with human resource procedures and regulations.

"Shelby County showcases the ease of integration and user adoption, as well as the versatility of Verity LiquidOffice, in addition to the practicality and effectiveness of Verity TeleForm," said Anthony J. Bettencourt, Verity's president and chief executive officer. "It is another of several thousand public sector operations that have successfully realized the benefits of Verity's process automation and content capture solutions."

A Dramatic Change

With the deployment of Verity LiquidOffice the method of handling leave requests will undergo a dramatic change. Shelby County was processing the requests using a method based on index cards. Each department noted and maintained files of index cards for each employee, tracking requests for leave and time taken. Leave requests were often acted on after the fact and were lost with a disquieting frequency. Further, it was difficult for employees to learn their current leave balance.

A full-time employee in each department was tasked to process the requests so the individual handling each assignment determined the methodology. Across the board, leaves were often not posted, accrued leave was miscalculated and managers did not always know the work status of employees.

"Verity LiquidOffice automates the leave process and removes steps that could normally result in errors," said Mike Pachis, Shelby County's development center manager. "It is now cleaner, more secure and less time-intensive. We also got a clear sense of what a big contributor LiquidOffice can be to improving the efficiency of Shelby County government operations overall."

Verity LiquidOffice is now the official forms repository for Shelby County. According to Pachis the software will provide a central location for all forms, help reduce the county's printing budget and use of paper while offering an on-demand method of producing forms.

The implementation of Verity LiquidOffice in the country's criminal justice department will include forms and documents used by prosecutors and defense attorneys in disposing a case. When a lawyer enters a case number, the desired list of forms are pre-filled with the pertinent case information, and can then be completely filled out by the DA or defense lawyer. The documents are then printed for final signatures and then scanned using TeleForm for archiving in the county's Hyland OnBase document management system.

"With the use of LiquidOffice in the Leave Accounting process," said Ron Casto, CIMSgts' president, "it has been calculated and demonstrated that the county will save more than two hours of time per county employee per year in each department. With more than 6,500 employees in the county, this translates to more than 13,000 man-hours and a conservative estimate of $150,000 in labor cost savings for processing leave requests alone. This combined with the savings that will be provided in the criminal court system and other departments across the county government, it is seeing a quick return on investment for the Verity LiquidOffice and TeleForm software systems."

In another near-term project, Shelby County employees will use Verity LiquidOffice and Verity TeleForm in tandem to submit and process expense reports. Verity TeleForm will scan receipts related to expense reports. Verity LiquidOffice will provide an expense report form to be completed by employees and then routed to all appropriate individuals for review. The scanned receipts will be attached to the Verity LiquidOffice eForm. The data will be put into an ERP system for speedy reimbursement, and the documents will be archived in the Hyland OnBase document management system.

Shelby County will also use Verity TeleForm to support recruiting activities. When a manager speaks with a potential employee, he or she completes a worksheet reflecting the job interview, providing a way to make certain human resources practices are followed. The worksheet is scanned and Verity TeleForm processes the associated data. This allows an easy and effective way to verify that all procedures were followed.

About CIMSgts

CIMSgts, the Shelby County selected vendor for Document Management, paper and eForms processing, and workflow solutions, was established in 1996, as a systems integration company based in Huntsville, AL. The staff of professionals at CIMSgts has extensive experience in multi-vendor systems integration, networking, programming, and database development that allows us to deliver complete turnkey hardware and software solutions. CIMSgts provides Verity TeleForm and LiquidOffice products, Hyland Software OnBase document management products.

CIMSgts customers include government agencies, municipalities, major utility providers, universities, and large retail businesses. Our in-house professionals tailor a specific solution to each customer based on their individual needs, yielding the optimum comprehensive system for each unique knowledge management situation.

For more information, please visit www.cimsgts.com. Or call at 256-882-3370.

About Verity

Headquartered in Sunnyvale, California, Verity provides software that enables organizations to maximize the return on their intellectual capital investment. The company's intellectual capital management (ICM) solutions provide integrated search, classification, recommendation, monitoring and analytics across the real-time flow of enterprise information, along with question and answer interfaces for effective online self-service. Other Verity ICM solutions capture content and drive automated business processes. Verity technology also serves as a core component of more than 260 applications from leading independent software vendors.

Verity software solutions are used by more than 11,500 customers in the private and public sectors. Customers include American Express, AT&T, Bristol-Myers Squibb, Cap Gemini Ernst & Young, Cardinal Health, Cisco Systems, EMC Documentum, Dow Jones, Financial Times, Hewlett-Packard, Lotus, Kaiser Permanente, META Group, SAP, Siemens, the State of California, Stellent, Sybase, and the U.S. Departments of Energy and Justice.

The statements in this press release regarding the benefits that Shelby County can realize from Verity LiquidOffice and Verity TeleForm are subject to risks and uncertainties, including the risk that: the benefits may not be obtained due to technical or other reasons; and the IT and process structures within Shelby County may not be conducive to realizing these benefits. These and other risks relating to Verity and its business and products are set forth under the caption "Risks Relating to Our Operations" in Item 1 of Verity's Form 10-K filed with the United States Securities and Exchange Commission on August 13, 2004.

For more information, contact Verity at info@verity.com or at World Wide Web site http://www.verity.com or call 408-541-1500.

Verity and the Verity logo are registered trademarks or trademarks of Verity, Inc.

Verity Editorial Contacts:

Jennifer Moranz

Verity, Inc.

(760) 936-4711

jmoranz@verity.com

Steve Hoechster

ElsterGroup

(646) 495-5401 or (914) 393-9219

shoechster@elstergroup.com

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