Open Text Announces Acquisition of LAVA Systems Inc.

Strategic Purchase To Combine ERP Integration Capability Into Open Text's Livelink Technology

Waterloo, ON - 1999-01-04 - Open Text Corporation (NASDAQ:OTEX; TSE:OTC), the worldwide leader in Web-based collaborative knowledge management application software, today announced it has signed a purchase agreement to acquire certain assets of LAVA Systems Inc. (TSE:LVA) of Toronto, Ontario. The terms of the agreement were not disclosed.

With the acquisition of LAVA Systems, Open Text's solutions will have the enhanced ability to fully leverage the information contained in leading ERP systems and integrate this information into Livelink's knowledge management system. In addition to strong enterprise integration capabilities, LAVA brings a substantial business practice in the financial services and insurance vertical of the knowledge management industry.

"The purchase of LAVA Systems continues our stated strategy of internal growth assisted by strategic acquisitions," said Tom Jenkins, Chief Executive Officer, Open Text Corporation. "This acquisition allows us to merge enterprise-level integration software with our flagship collaborative knowledge management application, Livelink."

"Both Livelink and LAVA customers will reap the benefits of this acquisition," said Jenkins. "Open Text plans to fully support LAVA customers and will continue to enhance LAVA's suite of products. We plan to invest in developing a tight integration between LAVA Enabler and LAVA DMS with Livelink so that both Livelink and LAVA customers see tremendous value added to their original investments."

LAVA Systems provides solutions to customers throughout North America, Europe and Asia including Abitibi Price, Allstate, CIBC, Halifax Insurance, K-Mart, and Seagrams.

The combined company will have approximately 700 employees and offices throughout North America, Europe and Asia.

About LAVA Systems

LAVA Systems provides Business Process Enablement Solutions that support knowledge management environments. The firm develops, delivers and supports products - LAVA Knowledge Management System and LAVA Business Process Enabler - that improve the efficiencies of key business processes by enabling the full potential of applications and information sources for knowledge workers.

Trademark

Open Text, LAVA, and Livelink are trademarks of Open Text Corporation. All other trademarks are the property of their respective companies.

Release Disclaimer

This news release may contain forward-looking statements relating to the future performance of Open Text Corporation. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the company's filings with the Securities and Exchange Commission (SEC), including the final prospectus for the company's initial public offering of common stock in January 1996, Form 10-K for the years ended June 30, 1997 and June 30, 1998, and Form 10-Q for the quarters ended September 30, 1997, December 31, 1997, March 31, 1998, and September 30, 1998.

For more information, please contact

Margaret E. Dobbin
Director, Industry Analyst Relations
Open Text Corporation
+1-519-888-7111 ext.2410
mdobbin@opentext.com