EXHIBIT 99.1

Interwoven Announces Third Quarter 2005 Results

Revenues of $43.9 Million; Non-GAAP Profit of 7 Cents Per Share; 70 New Customers

SUNNYVALE, Calif. – October 19, 2005 – Interwoven, Inc. (Nasdaq: IWOV), provider of Enterprise Content Management (ECM) solutions for business, today announced financial results for the third quarter and nine months ended September 30, 2005.

Interwoven reported total revenues of $43.9 million for the third quarter, an increase of 7% from total revenues of $41.0 million posted in the quarter ended June 30, 2005, and an increase of 9% from total revenues of $40.3 million for the third quarter last year. Net loss for the third quarter of 2005, calculated in accordance with generally accepted accounting principles, was $184,000, or essentially break even on a per share basis, as compared to a net loss of $1.5 million, or $0.04 per share, for the same period last year. On a non-GAAP basis, Interwoven reported a net income of $2.9 million for the third quarter of 2005, or $0.07 per share, compared to a non-GAAP net income of $1.5 million, or $0.04 per share, for the same period last year. Non-GAAP results exclude restructuring and excess facilities charges and amortization of stock-based compensation and intangible assets and the related tax impact of these adjustments.

For the nine months ended September 30, 2005, Interwoven reported total revenues of $127.5 million, an increase of 9% from total revenues of $117.2 million for the same period last year. Net loss for the nine months ended September 30, 2005, calculated in accordance with generally accepted accounting principles, was $499,000, or $0.01 per share, compared to a net loss of $24.1 million, or $0.60 per share, for the same period last year. On a non-GAAP basis, Interwoven reported net income of $7.9 million for the nine months ended September 30, 2005, or $0.19 on a per share basis, compared to a non-GAAP net income of $1.6 million, or $0.04 on a per share basis, for the same period last year. Non-GAAP results exclude restructuring and excess facilities charges and amortization of stock-based compensation and intangible assets and the related tax impact of these adjustments.

A reconciliation of net loss calculated in accordance with generally accepted accounting principles and non-GAAP net income is provided in the tables immediately following the consolidated statements of operations. Additional information about the company’s non-GAAP financial measures can be found under the caption “Non-GAAP Financial Information” below.

“Q3 was an excellent quarter for Interwoven, and one during which we achieved strong traction most notably with our Web Content Management, Content Provisioning, and Digital Asset Management solutions,” said Martin Brauns, chairman and CEO of Interwoven. “Furthermore, I’m very pleased with our license revenue growth, profitability, and overall financial performance during the quarter.”

Strong Worldwide Customer Acquisition

Interwoven continued its strong global customer momentum in the third quarter by adding 70 new customers.

New customers selecting Interwoven in the third quarter include: Capital One; Iron Mountain; Virgin Mobile; Kronos; Tahitian Noni International; The New York City Metropolitan Museum of Art; The U.S. Air Force; Nikon in Japan; UNITE in the U.K.; and many more.

Interwoven also continued to attract new world-class law firm customers including: Cadwalader, Wickersham & Taft; Perkins Coie; Cooksey, Toolen, Gage, Duffy & Woog; and Lenczner Slaght Royce Smith Griffin, a top Canadian law firm. As a result of Interwoven’s continued legal market success throughout the quarter, the company now has 62 of the AmLaw 100 and 115 of the AmLaw 200 firms (the definitive rankings of the largest American law firms) as customers.

In the third quarter, Interwoven also received orders from existing customers including: eBay; America Online; Citibank; Business Objects; SunTrust; Farmers Insurance; FutureNetworks; Kaiser; The U.S. Postal Service; Toyota; BT; Mastercard International; Citi Financial Japan; Bell Canada; Tesco; Cathay Life; Visa International; the National Stock Exchange of India; and others. Reorders from law firms during the third quarter include: DLA Piper Rudnick Gray Cary; White & Case; Hogan & Hartson; Munger, Tolles & Olson; Uria & Mendez in Spain; Velloza, Girotto e Lindenbojm Advogados in Brazil; and Ebsworth & Ebsworth in Australia.

During the quarter, new and existing customers purchased Interwoven ECM solutions to streamline an array of content management processes. For example, Visa International, an existing Web Content Management and Digital Asset Management customer, expanded its Interwoven ECM implementation with the purchase of Interwoven Document Management to facilitate increased productivity, information sharing, and content reuse. And, reinforcing Interwoven’s strong continued success with its Content Provisioning solution, SunTrust, an existing Web Content Management customer, adopted the Interwoven Content Provisioning solution to streamline the way code and content changes are deployed across the organization’s Web-based applications. Further, Iron Mountain, a new Interwoven customer, purchased Interwoven’s Digital Asset Management and Extranet Management solutions to effectively manage its digital assets as well as enable the successful redesign of its customer/partner extranet and public-facing Internet sites.

Continued ECM Innovation

Interwoven continued to reinforce its technology leadership by bringing to market new and innovative ECM solutions and products:

• ECM Solutions Focus—Interwoven issued an announcement this week at its Interwoven GearUp ’05 Europe Conference summarizing the ECM solutions the company is currently delivering to the market. This announcement follows on the heels of the recently-released Forrester ECM report (“The Forrester Wave: Enterprise Content Management Suites, Q3 2005”) in which Forrester recognized Interwoven for its proven solution focus: “[Interwoven’s] ECM strategy is completely focused on meeting the content-centric needs of organizations, highlighted by current offerings for matter-centric, deal management, contract management, presentation management, eDiscovery, and other solutions.”

• OTC Derivatives Solution / Scrittura Acquisition—On August 16^th, Interwoven closed the acquisition of Scrittura, the leading provider of document automation technology and straight-through-processing for the complex non-exchange based trading operations of financial services institutions. As a result, Interwoven is now a leading ECM provider in the growing market for the trading of non-exchange based financial instruments, and the first ECM vendor to offer a complete solution for the automation of over-the-counter (OTC) derivatives trading.

• Records Manager 5.0—Extending the company’s records management capabilities, Interwoven introduced the new Interwoven Records Manager (IRM) 5.0 product for professional services firms. IRM 5.0 offers a complete and scalable approach to records management through the seamless integration with Interwoven’s industry-leading WorkSite 8 Document Management system, positioning the company as the only ECM

	solutions provider to enable the unified management of records, documents, and e-mails within a true engagement/matter-centric collaboration environment.
•	New Content Transformation Services Offering—Interwoven Content Transformation Services for TeamSite, a new add-on module to the company’s Web Content Management solution, enables business professionals to easily publish common business documents—created in Microsoft Word, Excel, or PowerPoint as PDF or HTML files—to multiple channels across the enterprise without the need to change applications.
•	Enhanced Content Intelligence Services Offering—Interwoven’s MetaTagger Content Intelligence Services offering provides the industry’s most advanced functionality for social network discovery and content categorization. Organizations can ensure the most relevant content reaches the right audiences at the right time through the automation of previously manual document review processes.

Partner Momentum

• Microsoft—Continuing to expand on its partnership with Microsoft, Interwoven announced the availability of a new integration with Microsoft SharePoint Portal Server 2003. The new integration—Interwoven WorkSite for SharePoint—reinforces Interwoven’s strategy to deliver high velocity solutions to the professional services industry for end-to-end content management. During the quarter, Interwoven and Microsoft achieved strong momentum with the new integration, acquiring several joint customers including the following AmLaw 100 firms: Hogan & Hartson; White & Case; and Blank Rome Comisky & McCauley.

• Sun—Following the announcement at the beginning of Q3 that Sun is now a global reseller of the entire Interwoven ECM platform, the two companies have already seen strong momentum with customers deploying Interwoven on Sun hardware including: Citibank; Bell Canada; AG Edwards; John Hancock Mutual Life Insurance; Toyota; and others. Additionally, the two companies worked closely together throughout the quarter to train the Sun sales and marketing teams; jointly market and promote the expanded partnership; and increase technology alignment with Interwoven now being certified on both the Sun Solaris 10 and Sun x64 server platforms. Continuing to build on this momentum, Sun is a platinum sponsor of this week’s Interwoven GearUp’05 Europe conference at which Sun is showcasing its Java enterprise software, server and storage products. Combined with Interwoven’s ECM platform, Sun is providing a complete end-to-end system for governments, enterprises, and service providers.

• Growing ECM Solution PartnerNetwork—During the quarter, Interwoven partners continued to bring new solutions to market based on Interwoven ECM technology. For example, Micro Strategies delivered a new Hedgefund Compliance and Deal Document Management solution, which leverages Interwoven’s Document Management technology to address the specific document and content management needs for private equity and hedge fund firms. Additionally, Linmar brought to market a Wealth Management solution, enabling banks, brokerages, and asset management firms to improve asset and client retention, reduce risk, and streamline internal processes. And, just this week at the Interwoven GearUp ’05 Europe conference in London, leading technology providers are showcasing an array of solutions they are delivering based on Interwoven ECM technology including: Microsoft (joint ECM solutions for the professional services industry); Sun (Interwoven ECM platform reseller); BEA (portals); eCopy (scanning and imaging); Kofax (capture); Interflow (IT program management); Morningstar (context management); and many others.

Industry Recognition/Awards

In the third quarter, Interwoven continued to receive widespread recognition from leading

industry analysts, publications, and award associations across the globe for its best-in-class ECM solutions, market leadership, and strong customer ROI.

• Document Management Leadership—During the quarter, Interwoven was honored with two prestigious awards reinforcing its continued Document Management leadership. Interwoven was honored by the readers of Law Office Computing magazine in the August/September issue for providing the most widely used and trusted Document Management solution on the market today. Further, Interwoven Document Management was recognized on KMWorld magazine’s annual list of ‘Trend-Setting’ products, which features products and solutions that have demonstrated superior usability, strong market adoption, and provide measurable value to customers.

• Forrester Web Content Management Retail Wave Report—In the third quarter, Interwoven was ranked as a leader by Forrester Research in “The Forrester Wave: Web Content Management for Retail, Q3 2005” report. Interwoven’s ranking as a Web Content Management Retail leader follows on the heels of the company’s earlier ranking by Forrester as an overall Web Content Management leader across industries in its April 2005 Web Content Management Wave report. The latest Forrester report is further support that Interwoven continues to be a leading choice for companies in key vertical markets, such as retail, who are looking for a robust solution to meet the needs of all their Web initiatives.

• Gartner Digital Asset Management MarketScope—Interwoven also received industry analyst praise from Gartner, which recently recognized the company for its strength in Digital Asset Management. In its 2005 Digital Asset Management MarketScope report, Gartner highlighted Interwoven’s technology strength by giving the company a ‘positive’ rating, and commenting that Interwoven’s focus on PowerPoint Presentation Management has had “a powerful appeal to marketing executives everywhere who would otherwise have little interest in media.”

• Software Magazine 500—Reaffirming its continued ECM leadership and technology innovation, Interwoven was named to the prestigious Software Magazine 500 list, which is comprised of the world’s top software companies.

Interwoven GearUp ‘05 Europe, ‘The ECM Solutions Conference’

The Interwoven GearUp ‘05 Europe ECM Solutions conference began today at the Riverbank Park Plaza hotel in London, and will continue through October 20, 2005. The event features a PartnerNetwork Pavilion sponsored by premier Interwoven partners including Sun, Microsoft, Accenture, eCopy, and others; keynote addresses by Gartner, Interwoven customers BT and Heidelberger Druckmaschinen, and Interwoven executives; and, an exclusive gala reception with UK comedian and television star Jimmy Carr. For more information on the Interwoven GearUp conference, and to read the latest news being announced at the conference, please go to: http://www.interwoven.com/events/conferences/gearup_emea05/index.html

Non-GAAP Financial Information

To supplement the company’s consolidated financial statements presented in accordance with generally accepted accounting principles in the United States of America, Interwoven uses measures of operating results, net loss and net loss per share, which are adjusted to exclude restructuring charges, amortization of stock-based compensation and intangible assets and the related tax impact of these adjustments. These non-GAAP results are not in accordance with, or an alternative for, results prepared in accordance with accounting principles generally accepted in the United States of America, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies. Interwoven believes that the presentation of non-

GAAP results provides useful information to management and investors regarding underlying trends in its consolidated financial condition and results of operations. Interwoven uses these non-GAAP measures in assessing corporate performance and determining incentive compensation. Readers are advised to review and consider carefully the financial information prepared in accordance with accounting principles generally accepted in the United States of America contained in this press release and Interwoven’s periodic filings with the Securities and Exchange Commission.

Conference Call Information

Interwoven’s 2005 third quarter results and its business outlook for the fourth quarter of 2005 will be discussed today, October 19, 2005 at 2:00 p.m. PT (5:00 p.m. ET).

Live Dial-in #: (913) 981-5584
Replay #: (719) 457-0820 or (888) 203-1112
Pass code: 3880498

Audio Web cast instructions will be available on Interwoven’s Website at http://www.interwoven.com/investors. The call replay will be available starting October 19, 2005 (5:00 p.m. PT) for a limited period.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking” statements, including statements about historical results that may suggest trends for our business. These statements are based on estimates and information available to us at the time of this press release and are not guarantees of future performance. Our forward-looking statements include management quotations, statements about customer momentum and statements about technology leadership. Actual results could differ materially from our current expectations as a result of many factors, including: our ability to develop new products, services, features and functionality successfully and on a timely basis; customer acceptance of our solutions; changes in customer spending on enterprise content management initiatives; our ability to cross-sell and up-sell additional products into our installed base of customers; the success of our strategic alliances; intense competition in our markets; and the introduction of new products or services by competitors and the ongoing consolidation in our markets. These and other risks and uncertainties associated with our business are described in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Forms 8-K, which are on file with the Securities and Exchange Commission and available through www.sec.gov.

About Interwoven

Interwoven, Inc., provider of Enterprise Content Management solutions for business, enables organizations to unify people, content and processes to minimize business risk, accelerate time-to-value and sustain lower total cost of ownership. Interwoven delivers deep industry-specific solutions which reduce business process cycle time from initial collaboration through design, production, sales, marketing, legal review, IT and service. Interwoven leads the industry with a service-oriented architecture today and easy-to-use, best-in-class components and solutions. Today, nearly 3,400 enterprises, law firms, and professional services organizations worldwide are Interwoven customers including BT, Ford, Freshfields Bruckhaus Deringer, General Motors, Jones Day, Motorola and Yamaha. Interwoven is headquartered in Sunnyvale, Calif., with offices around the world. For more information visit www.interwoven.com.

INTERWOVEN, INC.

Consolidated Statements of Operations

(In thousands, except per share data)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2005			2004			2005			2004
Revenues:
License	$	17,417		$	16,157		$	48,500		$	49,335
Support and service		26,522			24,104			78,958			67,815
Total revenues		43,939			40,261			127,458			117,150
Cost of revenues:
License		3,951			3,387			10,781			9,864
Support and service		10,654			9,705			30,864			28,643
Total cost of revenues		14,605			13,092			41,645			38,507
Gross profit		29,334			27,169			85,813			78,643
Operating expenses:
Sales and marketing		17,888			17,300			51,631			52,585
Research and development		7,635			7,746			23,503			23,033
General and administrative		3,506			3,052			9,887			9,022
Amortization of stock-based compensation		326			941			1,119			4,352
Amortization of intangible assets		834			1,217			2,472			3,631
Restructuring and excess facilities charges (recoveries)		35			(1,360	)		(598	)		10,477
Total operating expenses		30,224			28,896			88,014			103,100
Loss from operations		(890	)		(1,727	)		(2,201	)		(24,457	)
Interest income and other, net		984			468			2,605			1,114
Income (loss) before provision for income taxes		94			(1,259	)		404			(23,343	)
Provision for income taxes		278			243			903			729
Net loss	$	(184	)	$	(1,502	)	$	(499	)	$	(24,072	)
Basic and diluted net loss per common share	$	(0.00	)	$	( 0.04	)	$	(0.01	)	$	(0.60	)
Shares used in computing basic and diluted net loss per common share		41,988			40,564			41,586			40,374

INTERWOVEN, INC.

Impact of Non-GAAP Adjustments on Reported Net Loss

(In thousands, except per share data)
(Unaudited)

	Three Months Ended								Three Months Ended
	September 30, 2005								September 30, 2004
	As reported			Adjustments*			Non-GAAP		As reported			Adjustments*			Non-GAAP
Revenues:
License	$	17,417		$	—		$	17,417	$	16,157		$	—		$	16,157
Support and service		26,522			—			26,522		24,104			—			24,104
Total revenues		43,939			—			43,939		40,261			—			40,261
Cost of revenues:
License		3,951			(3,099	)		852		3,387			(2,739	)		648
Support and service		10,654			—			10,654		9,705			—			9,705
Total cost of revenues		14,605			(3,099	)		11,506		13,092			(2,739	)		10,353
Gross profit		29,334			3,099			32,433		27,169			2,739			29,908
Operating expenses:
Sales and marketing		17,888			—			17,888		17,300			—			17,300
Research and development		7,635			—			7,635		7,746			—			7,746
General and administrative		3,506			—			3,506		3,052			—			3,052
Amortization of stock-based compensation		326			(326	)		—		941			(941	)		—
Amortization of intangible assets		834			(834	)		—		1,217			(1,217	)		—
Restructuring and excess facilities charges (recoveries)		35			(35	)		—		(1,360	)		1,360			—
Total operating expenses		30,224			(1,195	)		29,029		28,896			(798	)		28,098
Income (loss) from operations		(890	)		4,294			3,404		(1,727	)		3,537			1,810
Interest income and other, net		984			—			984		468			—			468
Income (loss) before taxes		94			4,294			4,388		(1,259	)		3,537			2,278
Provision for income taxes		278			1,214			1,492		243			532			775
Net income (loss)	$	(184	)	$	3,080		$	2 ,896	$	(1,502	)	$	3,005		$	1,503
Net income (loss) per share	$	(0.00	)				$	0.07	$	(0.04	)				$	0.04
Shares used in computing net income (loss) per share**		41,988						42,509		40,564						41,319

*	The non-GAAP adjustments represent the reversal of restructuring and excess facilities charges, the amortization of stock-based compensation and intangible assets and the related tax impact of these adjustments.
**	The shares used in computing non-GAAP net income for the nine months ended September 30, 2005 and 2004 include the dilutive impact of common stock options.

INTERWOVEN, INC.

Impact of Non-GAAP Adjustments on Reported Net Loss

(In thousands, except per share data)
(Unaudited)

	Nine Months Ended								Nine Months Ended
	September 30, 2005								September 30, 2004
	As reported			Adjustments*			Non-GAAP		As reported			Adjustments*			Non-GAAP
Revenues:
License	$	48,500		$	—		$	48,500	$	49,335		$	—		$	49,335
Support and service		78,958			—			78,958		67,815			—			67,815
Total revenues		127,458			—			127,458		117,150			—			117,150
Cost of revenues:
License		10,781			(8,549	)		2,232		9,864			(7,917	)		1,947
Support and service		30,864			—			30,864		28,643			—			28,643
Total cost of revenues		41,645			(8,549	)		33,096		38,507			(7,917	)		30,590
Gross profit		85,813			8,549			94,362		78,643			7,917			86,560
Operating expenses:
Sales and marketing		51,631			—			51,631		52,585			—			52,585
Research and development		23,503			—			23,503		23,033			—			23,033
General and administrative		9,887			—			9,887		9,022			—			9,022
Amortization of stock-based compensation		1,119			(1,119	)		—		4,352			(4,352	)		—
Amortization of intangible assets		2,472			(2,472	)		—		3,631			(3,631	)		—
Restructuring and excess facilities charges (recoveries)		(598	)		598			—		10,477			(10,477	)		—
Total operating expenses		88,014			(2,993	)		85,021		103,100			(18,460	)		84,640
Income (loss) from operations		(2,201	)		11,542			9,341		(24,457	)		26,377			1,920
Interest income and other, net		2,605			—			2,605		1,114			—			1,114
Income (loss) before taxes		404			11,542			11,946		(23,343	)		26,377			3,034
Provision for income taxes		903			3,159			4,062		729			662			1,391
Net income (loss)	$	(499	)	$	8,383		$	7,884	$	(24,072	)	$	25,715		$	1,643
Net income (loss) per share	$	(0.01	)				$	0.19	$	(0.60	)				$	0.04
Shares used in computing net income (loss) per share**		41,586						42,147		40,374						41,683

*	The non-GAAP adjustments represent the reversal of restructuring and excess facilities charges, the amortization of stock-based compensation and intangible assets and the related tax impact of these adjustments.
**	The shares used in computing non-GAAP net income for the nine months ended September 30, 2005 and 2004 include the dilutive impact of common stock options.

INTERWOVEN, INC.

Consolidated Balance Sheets

(In thousands)

	Sept. 30, 2005			Dec. 31, 2004
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	49,480		$	22,466
Short-term investments		77,236			111,291
Accounts receivable, net		29,001			28,292
Prepaid expenses and other current assets		6,242			8,450
Total current assets		161,959			170,499
Property and equipment, net		5,528			5,831
Goodwill, net		191,480			185,464
Other intangible assets, net		30,134			30,035
Other assets		1,907			1,947
Total assets	$	391,008		$	393,776
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4,196		$	5,568
Accrued liabilities		21,253			20,370
Restructuring and excess facilities accrual		7,475			8,966
Deferred revenues		49,574			50,121
Total current liabilities		82,498			85,025
Accrued liabilities		2,904			3,413
Restructuring and excess facilities accrual		11,529			16,716
Total liabilities		96,931			105,154
Commitments and contingencies
Stockholders’ equity:
Common stock		42			41
Additional paid-in capital		703,661			697,860
Deferred stock-based compensation		(1,752	)		(2,067	)
Accumulated other comprehensive loss		(368	)		(205	)
Accumulated deficit		(407,506	)		(407,007	)
Total stockholders’ equity		294,077			288,622
Total liabilities and stockholders’ equity	$	391,008		$	393,776