Exhibit 99.1

Ariba Reports Results for the Fourth Quarter and Fiscal Year 2006

Increase in subscription revenue, new customers and large deals positions company for growth in 2007

SUNNYVALE, Calif., October 25, 2006 — Ariba^®, Inc. (Nasdaq: ARBA), the leading spend management solutions provider, today announced results for the fourth quarter and fiscal year ended September 30, 2006.

Fourth Quarter Results

Total revenues for the fourth quarter of fiscal year 2006 were $72.4 million, as compared to $77.1 million for the fourth quarter of fiscal year 2005. Software license revenues for the quarter were $5.1 million, as compared to $8.0 million for the fourth quarter of fiscal year 2005. Subscription and maintenance revenues for the quarter were $32.6 million, as compared to $30.6 million for the fourth quarter of fiscal year 2005. Within subscription and maintenance revenues, subscription software revenue was $14.0 million for the quarter, as compared to $12.2 million for the fourth quarter of fiscal year 2005. Services and other revenues for the quarter were $34.7 million, as compared to $38.5 million for the fourth quarter of fiscal year 2005.

Net loss for the fourth quarter of fiscal year 2006 was $8.4 million, or $0.13 per share, as compared to a net loss for the fourth quarter of fiscal year 2005 of $7.3 million, or $0.11 per share. The net loss for the fourth quarter of fiscal year 2006 included charges of $3.9 million for amortization of intangible assets, and $11.3 million for stock-based compensation. Excluding these items, non-GAAP net income was $6.8 million, or $0.10 per diluted share.

Fiscal Year Results

Total revenues for fiscal year 2006 were $296.0 million, as compared to $323.0 million for fiscal year 2005. Software license revenues were $23.9 million, as compared to $47.8 million for fiscal year 2005. Subscription and maintenance revenues were $126.6 million, as compared to $123.4 million for fiscal year 2005. Services and other revenues for the year were $145.5 million, as compared to $151.8 million for fiscal year 2005.

Net loss for fiscal year 2006 was $46.1 million, or $0.70 per share, as compared to a net loss for fiscal year 2005 of $349.6 million, or $5.49 per share. The net loss for fiscal year 2006 included charges of $16.5 million for amortization of intangible assets, $41.2 million for stock-based compensation, and $25.4 million for lease and integration related costs. Excluding these items, non-GAAP net income was $37.0 million, or $0.53 per diluted share.

“As we closed the books on fiscal year 2006, we saw strength in some key business indicators that set the stage well for Ariba in 2007,” said Bob Calderoni, CEO, Ariba. “Our team is succeeding on many business fronts. During the fourth quarter, we significantly grew our backlog and increased our cash to fund growth initiatives. We also saw our number of large deals and customer acquisition rate rise. We expect to build on this success in fiscal 2007 by continuing to deliver innovative spend management solutions that create value for companies around the world.”

New Customer Growth

Ariba added 30 new customers during the fourth quarter of fiscal year 2006, growing its new customer acquisition by 25% from third quarter of fiscal year 2006. During the fourth quarter, nearly 200 customers around the world purchased, expanded or renewed their investment in Ariba Spend Management™ solutions, including: Advance Auto Parts, Inc., Alaska Air Group, Inc., Allied Waste Industries, Altran Technologies SA, Amtrak, Aviva Plc, AXA Group, Bayerische Motoren Werke AG, BHP Billiton Limited, Canada Revenue Agency, Caterpillar Inc., Chevron Corporation, CNH Capital America LLC, Dabur India Limited, Dell Inc., Dollar Tree Stores, Inc., Doncasters Group Ltd., Ford Motor Company, Government of the District of Columbia, Hercules Incorporated, Hertz, H&R Block, Kohl’s Corporation, Levi Strauss & Co., Omya AG, PSA Peugeot Citroën S.A., Renault S.A., Southwest Airlines Co., State of Florida, Suncorp-Metway Ltd, Synopsys, Inc., The Manitowoc Company, Inc., The Siam City Cement Group, Tyco International, Ltd. and University of Miami.

Mid-Market Traction

Seven of the top 10 Fortune 500 companies use spend management solutions from Ariba to drive business transformation and competitive advantage. But spend management isn’t just for large enterprises. Through its flexible delivery models and pricing packages, Ariba makes it fast, easy and affordable for companies of all sizes across industries to adopt and realize the value of spend management. More than 75 percent of the new customers Ariba added during the fourth quarter of fiscal year 2006 are small and medium-sized businesses.

Solution Innovation

Ariba set the standard for spend management and continues to raise the bar through its focus on innovation. Over the next month, the company will release the latest version of its industry-leading on-demand solutions, which will enable companies to address key spend management priorities and challenges and accelerate the results they achieve.

Regardless of where companies are on the path to spend management, Ariba can provide them with a robust and flexible range of solutions they can leverage to improve their profits, reduce risk and gain market advantage.

Market Leadership

Ariba has been widely recognized for its vision and market leadership, and continued to receive accolades throughout fiscal year 2006. Several tier one research firms noted the strength of Ariba’s offerings, including Ariba Contract Management™, Ariba Electronic Invoice Presentment and Payment™, Procurement BPO, Ariba Supplier Connectivity™ and Ariba Sourcing Services. In addition, the company was named to the 2006 Supply & Demand Chain Executive 100, the Manufacturing Business Technology 100 and the START-IT 125 and was identified as one of the top 10 providers of procurement outsourcing solutions by FAO Today.

Conference Call Information

Ariba will hold a conference call today at 2:00 p.m. PDT / 5:00 p.m. EDT to discuss its results for the fourth quarter of fiscal year 2006. To join the call, please dial (877) 407-8031 in the United States and Canada, or (201) 689-8031 if calling internationally. There will also be a live web broadcast available on the investor relations section of Ariba’s website at www.ariba.com or at www.vcall.com. A replay of this call will be available from approximately 5:00 p.m. PDT / 8:00 p.m. EDT today through Wednesday, November 1, 2006 by calling (877) 660-6853 in the United States and Canada or (201) 612-7415 internationally and entering account number: 286 and conference ID number: 217357.

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Copyright © 1996 – 2006 Ariba, Inc.

Ariba, the Ariba logo, AribaLIVE and SupplyWatch are registered trademarks of Ariba, Inc. Ariba Spend Management, Ariba Spend Management. Find it. Get it. Keep it., Ariba. This is Spend Management, Ariba Solutions Delivery, Ariba Analysis, Ariba Buyer, Ariba Category Management, Ariba Category Procurement, Ariba Contract Compliance, Ariba Contracts, Ariba Contract Management, Ariba Contract Workbench, Ariba Data Enrichment, Ariba eForms, Ariba Electronic Invoice Presentment and Payment, Ariba Invoice, Ariba Sourcing, Ariba Spend Visibility, Ariba Travel and Expense, Ariba Procure-to-Pay, Ariba Workforce, Ariba Supplier Network, Ariba Supplier Connectivity, Ariba Supplier Performance Management, Ariba PunchOut, Ariba QuickSource, PO-Flip, Ariba Settlement, Ariba Spend Management Knowledge Base, Ariba Ready, Ariba Supply Lines, Ariba Supply Manager, Ariba LIVE and It’s Time for Spend Management are trademarks or service marks of Ariba, Inc. Ariba Proprietary and Confidential. All rights reserved. Patents pending. All other trademarks are property of their respective owners.

Ariba Safe Harbor

Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba’s expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba’s operating and financial results to differ materially from its current expectations include, but are not limited to: delays in development or shipment of new versions of Ariba’s products and services; lack of market acceptance of Ariba’s existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the ability to attract and retain qualified employees; difficulties in assimilating acquired companies; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions; inability to control costs; changes in the company’s pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba’s Form 10-K filed December 7, 2005 and in its Form 10-Q filed August 9, 2006.

Investor Contact:

Elaine Kitagawa

Ariba, Inc.

(650) 390-1000

ekitagawa@ariba.com

Media Contact:

Karen Master

Ariba, Inc.

(412) 297-8177

kmaster@ariba.com

Ariba, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited; in thousands)

Ariba, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited; in thousands, except per share data)

Non-GAAP Financial Measures

The accompanying press release dated October 25, 2006 contains non-GAAP financial measures. The following table reconciles the non-GAAP financial measures in the press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP measures include non-GAAP cost of revenues, gross profit, operating expenses, (loss) income from operations, net (loss) income and net (loss) income per share amounts.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, GAAP financial measures, which should be considered as the primarily financial metrics for evaluating our financial performance. Significantly, non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. Instead, they are based on subjective determinations by management designed to supplement our GAAP financial measures. They are subject to a number of important limitations and should be considered only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For example, our non-GAAP financial measures have the effect of excluding costs and expenses from our operating results that should be properly considered under a system of accrual accounting. In addition, our non-GAAP financial measures differ from GAAP measures with the same names, may vary over time and may differ from non-GAAP financial measures with the same or similar names used by other companies. Accordingly, investors should exercise caution when evaluating our non-GAAP financial measures.

Despite these limitations, we believe our non-GAAP financial measures provide meaningful supplemental information about our operating results, primarily because they exclude costs and expenses that we do not believe are as indicative of the ongoing operating performance of our business and our senior management. Although these costs should properly be considered in our GAAP financial measures, we believe they should be excluded when evaluating our current operating performance. The non-GAAP financial measures disclosed in the accompanying press release are used by our Board of Directors and senior management to evaluate our current operating performance, are used in evaluating the performance of our senior management, and are used in our budget and planning processes. In addition to these reasons we believe that our non-GAAP financial measures are helpful to investors by facilitating comparisons of our current and prior operating results and by facilitating comparisons of our operating results with those of other software companies.

Ariba, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Operating Results (1)

(Unaudited; in thousands, except per share data)

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP operating results for the period indicated below:

Ariba, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Operating Results

(Unaudited; in thousands, except per share data)

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP operating results for the period indicated below:

Discussion of Specific Items Excluded From Non-GAAP Financial Measures

Our non-GAAP financial measures generally exclude costs and expenses for (i) impairment of goodwill related to acquisitions, (ii) amortization of intangible assets related to acquisitions, (iii) restructuring and integration charges, and (iv) stock-based compensation. We exclude these costs and expenses because we believe they are not closely related to the ongoing operating performance of our businesses and our senior management and are generally excluded from our budget and planning process. In addition to these reasons, we believe our non-GAAP financial measures are also helpful to investors by facilitating comparisons of our operating results over different time periods and by facilitating comparisons of our financial performance with that of other companies. In additional, except for restructuring and integration costs, these costs and expenses are non-cash items that do not affect cash flows.