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Concord Communications Standardizes on Verity K2 Enterprise for Corporate Intranet and Internet Web sites

Global Provider of Business Service Management Software Uses Verity's Advanced Search Technology to Enhance Business Performance

SUNNYVALE, Calif. - 2005-01-03 - 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 Concord Communications Inc. has selected VerityË K2 Enterprise (K2E) software to provide advanced search capabilities for its corporate intranet and the company's public-facing Web site.

Concord Communications is a global provider of business service management (BSM) software solutions. With the goal of enhancing the efficiencies and productivity in all areas of its business from software development to product support to customer service, the company sought to equip its employees with an advanced and accurate intellectual capital management system that would provide them with quick, reliable access to business and customer information. After evaluating available options, Verity K2E was selected as the foundation for Concord Communications' corporate intranet and Internet Web sites.

"Our employees are now able to simultaneously search multiple content repositories for information on our intranet site and achieve fast, relevant results using Verity K2 Enterprise," said Tom Hopkins, chief information officer at Concord Communications. "Given the success of the Verity implementation on our intranet, we plan to expand use of the software's functionality to Concord's external Web site by the end of this year."

Verity K2E provides Concord Communications' employees with secure access to the company's intranet content including Word, Excel, PDF files, HTML and non-HTML documents as well as the company's code base.

"As a software development company, Concord Communications understands the unique pressures of product development cycles, product support needs and the high levels of customer service required to be successful in a highly competitive market," said Anthony J. Bettencourt, Verity's president and chief executive officer. "Verity is very pleased that Concord Communications has selected K2E to provide the intellectual capital management tools to help them enhance customer service and run their business more effectively."

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.

This press release contains forward-looking statements relating to Concord Communications' future implementation of Verity K2 Enterprise on its Internet Web site, as well as the expected benefits the customer will receive from utilizing Verity K2 Enterprise. Actual results are subject to risks and uncertainties, including the risk that integration of Verity K2 Enterprise into Concord Communications' Internet Web site will not occur as anticipated as a result of unforeseen technical difficulties; and the customer may choose to implement the Verity capability differently or on a different timeline than Verity or Concord Communications currently anticipates. These and other risks relating to Verity and its business and products are set forth under the caption "Risks Relating to Our Operations" in Verity's Form 10-Q filed with the United States Securities and Exchange Commission on October 8, 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:

Winifred Shum

Verity, Inc.

(408) 542-2363

wshum@verity.com

Steve Hoechster

ElsterGroup

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

shoechster@elstergroup.com

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