Exhibit 99.1

Ariba Reports Results for the Fourth Quarter and

Fiscal Year 2005

Strategic Acquisitions Drive

Annual Revenue Growth

SUNNYVALE, Calif., October 26, 2005 — Ariba^®, Inc. (Nasdaq: ARBA), the leading spend management solutions provider, today announced results for the fourth quarter and fiscal year ended September 30, 2005.

Fiscal Year Results

Total revenues for fiscal year 2005 were $323.0 million, as compared to $245.8 million for fiscal year 2004. Software license revenues were $47.8 million, as compared to $65.7 million for fiscal year 2004. Subscription and maintenance revenues were $123.4 million, as compared to $95.7 million for fiscal year 2004. Services and other revenues for the year were $151.8 million, as compared to $84.5 million for fiscal year 2004.

Net loss for fiscal year 2005 was $349.6 million, or $5.49 per share, as compared to a net loss for fiscal year 2004 of $25.2 million, or $0.51 per share. The net loss for fiscal year 2005 included charges of $20.3 million for amortization of intangible assets, $19.6 million for stock-based compensation, $247.8 million for goodwill impairment, $37.0 million for litigation provision, and $41.2 million for restructuring and integration costs. Excluding these items, total non-GAAP expenses for fiscal year 2005 were $306.7 million, resulting in non-GAAP net income of $16.4 million, or $0.24 per share.

The results for fiscal year 2005 include the results from FreeMarkets, Inc., which Ariba merged with on July 1, 2004.

Fourth Quarter Results

Total revenues for the fourth quarter of fiscal year 2005 were $77.1 million, as compared to $84.1 million for the fourth quarter of fiscal year 2004. Software license revenues for the quarter were $8.0 million, as compared to $15.6 million for the fourth quarter of fiscal year 2004. Subscription and maintenance revenues were $30.6 million, as compared to $31.1 million for the fourth quarter of fiscal year 2004. Services and other revenues for the quarter were $38.6 million, as compared to $37.4 million for the fourth quarter of fiscal year 2004.

Net loss for the fourth quarter of fiscal year 2005 was $7.3 million, or $0.11 per share, as compared to a net loss for the fourth quarter of fiscal year 2004 of $22.9 million, or $0.36 per share. The net loss for the fourth quarter of fiscal 2005 included charges of $4.8 million for amortization of intangible assets, $7.5 million for stock-based compensation, and $2.6 million for restructuring and integration costs. Excluding these items, total non-GAAP expenses for the fourth quarter of fiscal 2005 were $69.5 million, resulting in non-GAAP net income of $7.6 million, or $0.11 per share.

“This was an important year for Ariba, as we completed the integration with FreeMarkets and established ourselves as a true solutions provider and the clear leader in spend management,” said Bob Calderoni, CEO, Ariba. “During the fourth quarter, we continued to make good progress on the strategic initiatives we established earlier this year, including the transition of our license revenue to a subscription software model, the monetization of the Ariba Supplier Network™, and the development of an organization to address the growing enterprise market.”

Customers Validate Growing Market for Spend Management Solutions

Ariba added 74 new customers during fiscal year 2005, as companies seek to generate cost savings, increase their margins and accelerate positive bottom-line results. During the fourth quarter of fiscal year 2005, more than 150 customers in all regions renewed or expanded their investment in Ariba Spend Management™ solutions, including: Emerson Electric; Kohl’s; Schering-Plough, Inc.; Tyco International; PPG Industries; Dutch Railways; Nestle; and Ranbaxy Laboratories.

“This was a good quarter for Ariba, as we continue to see solid demand for spend management solutions,” said Mr. Calderoni. “Companies are realizing that Ariba is focused on a critical business strategy that has a sustainable impact on the bottom line, and we continue to play a major role in helping our customers accelerate their results.”

Conference Call Information

Ariba will hold a conference call today at 2:00 p.m. PDT/5:00 p.m. EDT to discuss the fourth quarter and fiscal year-end results. To join the call, please dial (800) 473-6123 in the United States and Canada, or (973) 935-8507 if calling internationally. There will also be a live web broadcast available on the investor relations section of the company’s website at www.ariba.com or at www.vcall.com. A replay of this call will be available at approximately 5:00 p.m. PDT/8:00 p.m. EDT today through November 2, 2005 by calling (877) 519-4471 in the United States and Canada or (973) 341-3080 internationally and entering ID #: 6568902.

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Copyright © 1996 – 2005 Ariba, Inc.

Ariba and the Ariba logo 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 Sourcing, Ariba Invoice, Ariba Travel & Expense, Ariba Workforce, Ariba Supplier Network, Ariba Supplier Performance Management, Ariba PunchOut, Ariba QuickSource, PO-Flip, Ariba Settlement and Ariba Spend Management Knowledge Base 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. For example, in February 2005, Ariba settled patent infringement claims filed against it by ePlus, Inc. for $37.0 million and incurred significant related legal expenses. 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 14, 2004 and in its Form 10-Q filed August 9, 2005.

Investor Contact:

John Ederer

Ariba, Inc.

(650) 390-1000

Media Contact:

Donna Maurillo

Ariba, Inc.

(650) 390-1773

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)

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:

Ariba provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). In addition, this press release contains non-GAAP financial information. This non-GAAP financial information excludes the following types of costs and expenses that are included in GAAP: i) amortization of intangible assets, ii) stock-based compensation, iii) goodwill impairment, iv) litigation provision, and v) restructuring and integration costs. Management reviews this non-GAAP financial information in evaluating Ariba’s historical and projected financial performance, and believes that it may assist investors in assessing its ongoing operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. We have provided a reconciliation of the non-GAAP financial information provided in this press release with the comparable financial information reported in accordance with GAAP for the given period.