Exhibit 99.1

Ariba Reports Results for the Third Quarter of Fiscal Year 2004

Company Adds New Customers, Completes Merger With FreeMarkets

SUNNYVALE, Calif., July 21, 2004 — Ariba, Inc. (Nasdaq: ARBA), the leading Spend Management (SM) solutions provider, today announced its results for the quarter ended June 30, 2004.

Revenues for the third quarter of fiscal 2004 were $53.0 million, as compared to $56.6 million for the third quarter of fiscal 2003. Software license revenues for the quarter were $15.5 million, as compared to $21.3 million for the third quarter of fiscal 2003, while maintenance and service revenues for the quarter were $37.5 million, as compared to $35.3 million for the third quarter of fiscal 2003. Net loss for the third quarter of fiscal 2004 was $7.6 million, or $0.17 per share. Net loss for the third quarter of fiscal 2003 was $3.4 million, or $0.08 per share on a post-split basis. Per share numbers reflect the one-for-six reverse split of Ariba’s common stock effected July 1, 2004.

“This was a solid quarter for Ariba,” said Bob Calderoni, CEO and chairman of the board, Ariba. “We completed the merger with FreeMarkets, and we have made tremendous progress on executing our integration plans. At the same time, we have continued to gain traction with significant customer wins in several blue chip accounts, and we are already off to a strong start with our combined customer efforts.”

Merger With FreeMarkets Complete

On July 1, Ariba completed its merger with FreeMarkets, Inc. The transaction, which brought together the best in Spend Management technology and the most comprehensive sourcing services and category expertise, solidly positions Ariba as the leader in Spend Management.

“Ariba is now very well positioned to help companies address the most critical procurement challenges,” said Dave McCormick, president, Ariba. “Our customers are looking for more than just short-term tactical projects, and they are turning to Ariba for the software and services solutions they need to accelerate their bottom line results.”

Enhanced Focus on Spend Management

With the addition of FreeMarkets, Ariba has enhanced its focus on Spend Management, offering a comprehensive range of services designed to help companies achieve sustainable results and realize savings more quickly. Ariba’s expanded set of solutions provide customers with:

New and Existing Customers Invest in Spend Management Solutions

Customers in all regions renewed or expanded their investment during the third quarter, including 19 new customers. Customers extending their relationship with Ariba included: Target Brands, Inc., a leading retailer; Rite Aid Corporation, one of the nation’s leading drugstore chains; Eaton Corporation, a leading diversified industrial manufacturer; The Goodyear Tire & Rubber Company, the world’s largest tire company; Boston University, a leading U.S. University; Bell Canada, Canada’s national leader in communications; Renault, a leading global auto manufacturer; PSA Peugeot-Citroen, Europe’s second-largest carmaker; Telefonica S.A., one of the world’s leading telecommunications companies; and T-Systems International GmbH, a subsidiary of Europe’s largest telecommunications company, Deutsche Telekom.

Cross-Customer Demand Brings New Opportunities

During the third quarter, Ariba already saw early evidence of the compelling value proposition of the merger with FreeMarkets, signing deals with existing FreeMarkets customers Tyco International and Giant Eagle, Inc.

“Tyco has launched a strategic sourcing initiative that includes Ariba’s spend visibility and sourcing solution tools to support our efforts. We expect these tools will help us deliver significant savings,” said Shelley Stewart, Jr., vice president supply chain, Tyco International.

“Giant Eagle is always eager to employ technology that allows us to streamline our supply chain costs to ultimately deliver better value to our customers,” said Giant Eagle Senior Vice President and CIO Russ Ross. “Since 2000, we have successfully used the sourcing technology and services provided by FreeMarkets to automate our sourcing process. To build on our leadership position, we are adding Ariba’s solution for spend analysis to provide us with greater transparency into our expense transactions. We are pleased that these solutions are now being offered by a single provider with whom we can work to accelerate our bottom line results.”

Conference Call Information

Ariba will hold a conference call today at 2 p.m. PDT/5 p.m. EDT to discuss the quarterly results. To join the call, please dial (800) 891-2713 in the US and Canada or (706) 634-5558 from international locations. 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 6:00 p.m. EDT today through July 28, 2004 by dialing (800) 642-1687 in the US and Canada or (706) 645-9291 from international locations and entering ID #8700345.

About Ariba, Inc.

Ariba, Inc. is the leading provider of Spend Management (SM) solutions. Ariba helps companies realize rapid and sustainable bottom-line results. Successful companies around the world in every

industry use Ariba Spend Management software and services. Ariba can be contacted in the U.S. at 1.650.390.1000 or at www.ariba.com

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Ariba and the Ariba logo are registered trademarks of Ariba, Inc. Ariba Spend Management, Ariba Analysis, Ariba Buyer, Ariba Category Management, Ariba Contracts, Ariba Travel & Expense, Ariba Workforce, Ariba Invoice, Ariba eForms, Ariba Enterprise Sourcing, Ariba Supplier Network, BPM Services, Power Sourcing, Total Spend Capture and PO-Flip are trademarks or service marks of Ariba, Inc. 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, including a recession; inability to control costs; changes in the company’s pricing or compensation policies; inability to successfully manage a reduction in the company’s workforce; significant fluctuations in our stock price; the outcome of pending or potential future regulatory or legal proceedings relating to the restatement of our financial statements and the level of associated professional fees and expenses; the impact of acquiring Alliente, Softface and FreeMarkets, 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-Q filed May 17, 2004 and in its Form S-4 filed May 13, 2004.

— Financial Tables to Follow —

ARIBA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

ARIBA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)