Exhibit 99.1

Ariba Reports Third Quarter Results

Sunnyvale, CA, July 21, 2005 – Ariba^®, Inc. (Nasdaq: ARBA), the leading spend management solutions provider, today announced financial results for the third quarter of fiscal year 2005 ended June 30, 2005.

Total revenues for the quarter were $77.7 million, as compared to $53.0 million for the third quarter of fiscal year 2004, an increase of 47 percent. License revenues for the quarter were $10.1 million, compared with $15.5 million for the third quarter of fiscal year 2004. Subscription and maintenance revenues were $30.2 million, compared with $21.0 million for the third quarter of fiscal year 2004. Services and other revenues for the quarter were $37.4 million, compared with $16.5 million for the third quarter of fiscal year 2004.

Net loss for the quarter was $288.7 million, or a loss of $4.52 per share, compared with a net loss for the third quarter of 2004 of $7.6 million, or $0.17 per share. The net loss for the quarter includes charges of approximately $5.1 million for amortization of intangible assets, $3.4 million for stock-based compensation, $247.8 million for goodwill impairment, and $34.6 million for restructuring and integration costs. Excluding these items, non-GAAP net income was $2.2 million, or $0.03 per share.

The results for the third quarter include the results from FreeMarkets, Inc., with which Ariba merged on July 1, 2004.

“I am pleased that we exceeded our previous guidance for both revenue and non-GAAP earnings per share,” said Bob Calderoni, CEO, Ariba. “We also continued to build positive momentum with our customers, including a couple of key deals that help validate our new strategic initiatives.”

New and Existing Customers Add Spend Management Solutions

As companies seek to generate cost savings, increase margins and accelerate positive bottom-line results, they continue to invest in Ariba Spend Management solutions. During the third quarter, Ariba added 21 new customers and extended agreements with more than 150 existing customers in Europe, Asia, and North America, including General Dynamics Corp., Goodyear Tire & Rubber Co., Royal Caribbean Cruises Ltd., Bell Canada, Giant Eagle, Inc., AXA, West Penn Allegheny Health System, Equity Office Properties Trust, O2 GmbH & Co OHG, and Capital One.

Conference Call Information

Ariba will host a conference call today, Thursday, July 21, 2005, at 2:00 p.m. PDT/5:00 p.m. EDT to discuss the results for the third quarter of fiscal year 2005. To join the call, please dial (800) 322-0079 in the United States and Canada, or (973) 409-9258 for other 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 through Thursday, July 28, 2005 by dialing (877) 519-4471 in the United States and Canada, or (973) 341-3080 for other international location and entering ID # 6253037.

About Ariba, Inc.

Ariba, Inc. is the leading provider of Spend Management solutions to help 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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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, Ariba recently settled patent infringement 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, in its Form 10-Q filed February 9, 2005, and in its Form 10-Q filed May 10, 2005.

Investor Contact:

John Ederer

Ariba, Inc.

(650) 390-1000

Media Contact:

Donna Maurillo

Ariba, Inc.

(650) 390-1773

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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, and iv) 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.