COSTA MESA, Calif. and DUBLIN, Eire July 2000 - FileNET Corporation (Nasdaq: FILE), a leading provider of enterprise Web Content Management and eBusiness applications, and one of its leading technology partners, Phoenix Technology Group based in Dublin, Eire, today announced a $3 million - second quarter deal - with Royal & SunAlliance (RSA) in Dublin, to deploy Phoenix Technology's Insurance DeskTOP (IDT) eProcess solution to 300 users over the next eight months.

Phoenix's Insurance DeskTOP application is built on FileNET's Panagon Web Content and eProcess Management technology and uses a suite of components created by Phoenix to enhance insurance customer implementations on a global basis. FileNET's Panagon family of products provides Phoenix with an integrated eBusiness application development platform and is designed to deliver superior large-scale management of Web content.

"IDT is a proven solution that will enable RSA to provide improved service to our customers," said Barry Timlin, IT Manager of RSA. "The packaged solution from Phoenix and FileNET can handle multiple communications channels, which means our customers can now communicate with us by standard mail, phone, fax, e-mail or through the Web. RSA chose Phoenix ahead of several national and international vendors because of its ability to deliver process management projects of this type. Plus, we know that Phoenix's IDT solution is built on the solid foundation of FileNET's Web Content Management and eProcess technology. We expect this solution will provide a platform for future eCommerce development."

By using FileNET's Panagon technology, the Insurance DeskTOP application provides the functionality required to implement a flexible, robust, eProcess and content management application 'out-of-the-box'. The fundamental principle of the IDT is to deliver a set of pre-configured applications that allow business managers to set up and manage their business processes, customer service levels, and workloads. Royal & SunAlliance expects to realise a number of benefits from the IDT solution, including:

• Improved Customer Service - by facilitating faster response times to claims and customer queries as well as freeing staff from the pressures of workload balancing.
• Increased Productivity - by eliminating barriers to effective performance, such as the removal of paper from the process and the automation of task allocation and report compilation.
• A Substantial Competitive Advantage - by implementing the latest technology to support current business operations and taking advantage of new channels and methods of communication, such as the Internet, e-mail and EDI.

Phoenix's Insurance Desktop design includes architectural support for Web deployment via browsers. The application incorporates Java based server components enabling easy accessibility through the Web. In addition, design features built into the IDT enable easy integration with a client's core system or with other specialist systems.

Phoenix is a premier FileNET ValueNET partner and ISV. "Phoenix and FileNET continually work closely to ensure that skills and products are kept at the forefront of available technology," said Claire Buchanan Northern Europe regional vice president at FileNET. "The deal with RSA strengthens both FileNET's and Phoenix's position as leaders in the eProcess and Web Content Management solutions market place."

About Phoenix Technology Group
With offices in Dublin and London Phoenix was founded in 1997. Phoenix delivers enterprise content management and e-process solutions to global retail financial institutions. Phoenix is a leading provider of web-enabled solutions for multifunctional contact and service centres empowering organisations to manage complex service processes and high-volume transaction relationships with customers, brokers and suppliers regardless of the source media (paper, e-mail, e-form, voice).

Customers include AXA Sun Life, CGNU, Royal Sun Alliance, and Scottish Widows/Lloyds TSB. For more information, please visit www.phoenix.ie.

About FileNET Corporation
FileNET Corp. (http://www.FileNET.com) is a proven leader in delivering integrated document management (IDM) software to unleash the power of information for corporate and government organisations. FileNET's Internet and client server solutions provide standards-based workflow, document imaging, electronic document management, and report management (COLD) software for managing information and enhancing productivity. Costa Mesa, Calif.-based FileNET markets its innovative products in more than 60 countries through a global FileNET sales, services and support organisation, including its ValueNet partner program of resellers, system integrators and application developers.