Event Brief of Q2 2005 Vitria Technology Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

CORPORATE PARTICIPANTS

. Mike Perry, Vitria Technology, Inc., CFO . Dale Skeen, Vitria Technology, Inc., CEO

OVERVIEW

VITR reported total revenue for 2Q05 of $12.3m, which resulted in a loss of $6m or about $0.18 per share in 2Q05, which includes over $600,000 in severance-related charges. VITR launched Resolution Accelerator and released version 2.0 of OrderAccelerator in 2Q05. VITR continues to pursue as a goal to break even in 4Q05 and for profitability for full-year 2006. Q&A Focus: Business Process Applications, sales, and ELA.

FINANCIAL DATA

A. Key Data From Call 1. 2Q05 total revenue = $12.3m. 2. 2Q05 loss = $6m. 3. 2Q05 loss per share = about $0.18. 4. 2Q05 gross profit = $6.8m. 5. 2Q05 cash on hand = $71m. 6. 2Q05 burn rate = $1.5m.

7. VITR expects to reach breakeven by 4Q05.

PRESENTATION SUMMARY

S1. Review of Operations (D.S.) 1. 2Q05 Results: 1. 2Q05 was a tough one for the Enterprise software market and for VITR, in particular. 2. License revenue was $2.1m. 3. Total revenue was $12.3m. 1. This resulted in a loss of $6m or about $0.18 per share in 2Q05, which includes over $600,000 in severance-related

charges. 4. These results are below VITR's expectations for 2Q05 and are below the potential results that VITR believes that it can produce during the remainder of 2005. 5. VITR continues to have as a goal to break even by 4Q05. 1. With its recently announced cost reductions, VITR intends to get there not only through revenue increases but also through a lower break even rate. 6. VITR has accomplished its recent cost reductions without any negative impact to its product road map by increasing its offshore resources. 2. Business Performance: 1. In the Integration Platform business, VITR's license revenues tend to be lumpy because of its reliance on few large transactions. 2. In 2Q05, two large Enterprise license agreements were forecasted but did not close. 1. One slipped. 1. The Co. now believes that it will close in 3Q05. 2. The other resulted in an order but not an Enterprise license agreement. 1. VITR believes that this is reflective of the current conservative IT spending environment. 3. Services Revenue:

1. VITR's support renewal rates continue to be well over 90%,

which shows continued commitment by its customers to VITR's

road map of products and solutions. 1. However, the Professional Services segment of the business was not as robust as the Co. expected, partially due to the disappointing level of license sales, which typically generates demands for VITR's Professional Services. 2. Looking forward to 2H05, VITR is optimistic about its prospects as its Business Process Application strategy is beginning to take root. 1. Business Process Applications, a new breed of applications

targeting key process problems, remain at the core of VITR's go-forward business strategy. 4. Key Milestones: 1. In 2Q05, VITR achieved several key milestones toward its strategy. 2. VITR launched Resolution Accelerator, the first purpose-built Business Process Application for exception management. 1. Exception management is a huge problem, costing VITR's targeted industries $10b annually.

2. VITR developed this product based on best practices gathered

over several years of solving exception-related problems in its existing customer base. 3. The Co. has received an enthusiastic response from the industry analysts who described Resolution Accelerator as unique and visionary and as the first comprehensive solution for exception management. 4. More importantly, the product generates strong customer interest. 1. For example, a major West Coast healthcare customer expects to go live with their implementation of Resolution

Accelerator in 4Q05. 2. As per this project, VITR and its customer will co-develop healthcare-specific content for exception management. 3. This is expected to provide competitive differentiation to VITR's customer in their market. 3. In June, VITR released version 2.0 of OrderAccelerator, its order management Business Process Application for telcos. 1. Several of VITR's existing customers have started working with this new version, which significantly boosts

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