Blue Cross Blue Shield of Arizona Selects Vitria to Assist in HIPAA Compliance

Vitria's Collaborative Application and Industry-Leading Integration Platform to Help Leading Insurance Provider Satisfy Healthcare Legislation Requirements

Sunnyvale, Calif. September 4, 2002 - Vitria (Nasdaq: VITR), a leading provider of business process integration solutions, today announced that Blue Cross Blue Shield of Arizona has selected Vitria as its integration standard for Healthcare Insurance Portability and Accountability Act of 1996 (HIPAA) compliance. As one of the state's largest health insurers, Blue Cross Blue Shield of Arizona serves more than 850,000 customers with a wide range of health coverage plans for individuals, groups and employers. Blue Cross Blue Shield of Arizona is using the Vitria Collaborative Application (VCA) for HIPAA and its BusinessWare® integration platform to streamline and automate transaction management capabilities across the enterprise.

"We selected Vitria as our HIPAA integration standard based on its ability to consolidate our internal systems quickly while monitoring and troubleshooting our business processes with a flexible solution," said Michael Linder, vice president and CIO, Blue Cross Blue Shield of Arizona. "Vitria's product suite is not only giving us greater control over patient claims and medical records as mandated by HIPAA, it is helping to lower our overall administrative costs."

The VCA for HIPAA is a sophisticated integration toolkit for managing transaction, validation and security requirements among healthcare payers, providers, clearinghouses, and government agencies in time for the mandated October 2003 deadline. The VCA for HIPAA and BusinessWare are allowing Blue Cross Blue Shield of Arizona to gain more visibility, control and access to the HIPAA transactions that flow across the business environment, expediting compliance with this federal mandate. In addition, enhanced visibility and management of the organization's data is allowing Blue Cross Blue Shield of Arizona to improve operational efficiencies and lower the costs of conducting business.

"Blue Cross Blue Shield of Arizona is relying on Vitria's solution to affect better transaction management, allowing for more visibility, control and access to processes such as claims, enrollment or eligibility requests that flow throughout the business environment," said Bob Golladay, vice president of Healthcare and Insurance at Vitria. "This approach will enhance business processes, help reduce operational costs and deliver a competitive advantage in the long term."

Blue Cross Blue Shield of Arizona is an independent licensee of the Blue Cross and Blue Shield Association (BCBSA), an association of independent Blue Cross and Blue Shield plans. Vitria contracted with the BCBSA in December 2001 to promote Vitria's technology to the association's 43 member plans as the solution of choice for business integration projects.

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This press release includes forward-looking statements, including statements relating to new products, future revenue growth, goals and future business opportunities that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to, failure to meet financial and product expectations of analysts and investors, risk as related to market acceptance of Vitria's product and alliance partner's products, deployment delays or errors associated with these and other products of Vitria and partners, hardware platform incompatibilities, need to maintain and enhance certain business relationships with system integrators and other parties, ability to manage growth, activities by Vitria and others regarding protection of proprietary information, release of competitive products and other actions by competitors and economic conditions in either domestic or foreign markets. These and other risks related to Vitria are detailed in Vitria's Annual Report on Form 10-K for the year ended Dec. 31, 2001, filed with the SEC on March 29, 2002, and in Vitria's quarterly reports on Form 10-Q as filed with the SEC. The final decisions regarding specific features, pricing, and availability of the products mentioned in the press release are to be determined at the sole discretion of the Company. Vitria does not undertake an obligation to update forward-looking statements.