Captiva Acquires ADP Context

Captiva Software Corporation (NASDAQ: CPTV), a leading provider of input management solutions, today announced it has signed a definitive agreement, effective February 1, 2004 to acquire ADP Context, Inc., a business unit of ADP Claims Solutions Group, Inc. (CSG) and a part of the worldwide Automatic Data Processing, Inc. (NYSE: ADP) family of companies. ADP Context provides automated software solutions to complex medical claims coding, editing and reimbursement challenges in the healthcare industry. ADP Context's solutions will enable Captiva to better serve its claims processing customers and expand its reach in the healthcare insurance market.

The acquisition, completed through an all-cash transaction valued at approximately $5.2 million, is expected to contribute at least $4.0 million of incremental revenue during the remainder of 2004 and be accretive on both a pro forma and GAAP basis.

"The acquisition of ADP Context is a natural progression for Captiva. It expands our presence and application expertise in the payor side of the healthcare market by allowing us to offer more solutions to our large customer base, and extends our reach into the provider side of this market. In addition, since ADP Context's solutions streamline the processing of electronic medical claims, they complement ClaimPack's ability to process paper based medical claims," said Reynolds C. Bish, President and CEO of Captiva. "ADP Context is a growing, profitable company with a substantial recurring revenue stream, outstanding products, talented employees and a strong customer base. We look forward to welcoming its employees and customers to Captiva and jointly building an even more successful combined company."

Founded in 1988 and based in Westmont, Illinois, ADP Context develops and markets automated solutions to help solve complex medical claims coding, editing and reimbursement challenges in the healthcare industry. Such solutions include CodeLink, claims coding software for increased processing accuracy, Claims Editor, a provider editing application designed to enhance claim billing systems, FirstPass, a web-based payor editing application that previews claims prior to their being entered into claim management systems and approximately 75 knowledge products offering a variety of content. These products empower healthcare providers and payors to reduce errors, claim denials, resubmissions, write-offs, run-away losses and claim handling costs. More than 1,400 physician practices, hospitals, insurance carriers, administrators and managed care organizations currently use ADP Context products. The company has approximately 35 employees.

"We look forward to being a part of Captiva," said Mark Earles, ADP Context's Vice President and General Manager. "Together, our products offer a very compelling combination of medical claims processing capabilities and better position us to serve the needs of our customers and prospects."

About Captiva
Captiva Software Corporation (NASDAQ: CPTV) is a leading provider of input management solutions. Since 1989, the company's award-winning products have been used to manage business critical information from paper, faxed and electronic forms, documents and transactions into the enterprise in a more accurate, timely and cost-effective manner. These products automate the processing of billions of forms, documents and transactions annually, converting their contents into information that is usable in database, document, content and other information management systems. Captiva's technology serves thousands of users in insurance, financial services, government, business process outsourcing, manufacturing and other markets. For more information, visit www.captivasoftware.com.