Exhibit 99.1

FOR IMMEDIATE RELEASE

Press Contact:	Investor Contact:
Eric Boduch	Michael D. Perry
VP Marketing	Sr. VP and CFO
+1-408-212-2256	+1-408-212-2260
eboduch@vitria.com	mperry@vitria.com

VITRIA ANNOUNCES SECOND QUARTER RESULTS

SUNNYVALE, Calif., August 2, 2006 Vitria (Nasdaq: VITR), an award-winning provider of business process integration solutions, today announced financial results for the second quarter ending June 30, 2006.

• For the second quarter of 2006, total revenue was $11.2 million, compared with $10.7 million for the first quarter of 2006 and $12.3 million for the second quarter of 2005.

• License revenue for the second quarter of 2006 was $2.7 million, compared with $2.5 million for the first quarter of 2006 and $2.1 million for the second quarter of 2005.

• Service and other revenue for the second quarter of 2006 was $8.5 million, compared with $8.2 million for the first quarter of 2006 and $10.2 million for the second quarter of 2005.

• Gross profit was $7.4 million for the second quarter of 2006, compared to $6.6 million for the first quarter of 2006 and $6.8 million for the second quarter of 2005.

• Total operating expenses were $11.7 million for the second quarter of 2006, compared with $11.6 million for the first quarter of 2006, and $13.1 million for the second quarter of 2005.

• Excluding charges for restructuring, severance and non-cash stock based compensation including (SFAS 123R), total operating expenses were $10.2 million for the second quarter of 2006, compared with $10.9 million for the first quarter of 2006, and $11.9 million for the second quarter of 2005.

• The net loss for the second quarter of 2006 was $3.6 million, or $0.11 per share, compared with a net loss of $4.2 million, or $0.13 per share, for the first quarter of 2006 and a net loss of $6 million, or $0.18 per share, for the second quarter of 2005.

• Total cash and short term investment balances as of June 30, 2006, were $54 million, compared to $55.1 million as of March 31, 2006.

Detailed comparative balance sheets and statements of operations are attached, and the company will host a conference call to discuss these results today at 5:00 p.m. EDT/ 2:00 p.m. PDT. To listen, please dial one of the following numbers at least five minutes prior to the start of the call:

— From the U.S. and Canada: 913-981-5558
— From international calling areas: 800-478-6251

The confirmation code for both call-in numbers is 2480137 followed by the pound (#) sign.

Non-GAAP Financial Measures (Regulation G)

Vitria continues to provide all information required in accordance with GAAP, but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Vitria uses non-GAAP financial measures of its performance internally to evaluate its ongoing operations and to allocate resources within the organization. Vitria’s management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. The non-GAAP financial measures used by Vitria may not be consistent with the presentation of similar companies in Vitria’s industry. However, Vitria presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Vitria’s operating results in a manner that focuses on what it believes to be its ongoing business operations. Vitria’s management believes it is useful for itself and investors to review both GAAP information that includes the expenses and charges mentioned below and the non-GAAP measure of operating expenses that excludes such charges to have a better understanding of the overall performance of Vitria’s business and its ability to perform in subsequent periods.

Vitria computes its non-GAAP financial measures of operating expense by adjusting GAAP operating expense to exclude, as applicable, the impact of restructurings, non-cash stock based compensation charges and severance charges. Management believes that the inclusion of this non-GAAP financial measure provides consistency and comparability with past reports of financial results and has historically provided comparability to similar companies in Vitria’s industry, many of which present the same or similar non-GAAP financial measures to investors. Whenever Vitria uses such a non-GAAP financial measure, it provides a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure. Vitria’s management believes it is useful for itself and investors to review both GAAP information that includes such charges and non-GAAP measures of operating expenses that exclude these charges to have a better understanding of the overall performance of Vitria’s ongoing business operations and its performance in the periods presented. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.

Vitria excludes restructuring charges, including (i) employee severance and other termination benefits, and (ii) lease termination costs and other expenses associated with exiting facilities, from its non-GAAP financial measures of operating expenses. Expenses related to restructuring have, in some cases, had a significant cash impact and effect on operating expenses as measured in accordance with GAAP. However, Vitria’s management believes such restructuring charges are periodic costs incurred to realign its operating expenses with its anticipated future revenues and

consequently, does not consider these restructuring costs as a normal component of its expense related to ongoing operations.

In accordance with GAAP, Vitria incurs non-cash stock based compensation charges. However, these charges result in no ongoing cash expenditures and otherwise have no material impact on Vitria’s ongoing business operations. Vitria believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Vitria’s ongoing operations.

About Vitria

Vitria Technology, Inc., an award-winning provider of award-winning business process integration products and solutions, combines technology leadership with industry expertise in healthcare and insurance, financial services, telecommunications and manufacturing to dramatically improve strategic business processes across systems, people and trading partners. With 11 offices around the world, Vitria’s customer base includes blue chip companies such as AT&T, Bell Canada, BellSouth, The Blue Cross Blue Shield Association, British Petroleum, British Telecom, DaimlerChrysler Bank, Generali, Nissan, The Goodyear Tire & Rubber Company, PacifiCare Health Systems, Reynolds & Reynolds, Royal Bank of Canada, Sprint, Trane and the U.S. Departments of Defense and Veterans Affairs. For more information, call +1-408-212-2700, email info@vitria.com or visit www.vitria.com.

NOTE: Vitria and BusinessWare are trademarks or registered trademarks of Vitria Technology, Inc. All other products and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.

Cautionary Note Regarding Forward-looking Statements: This press release includes forward-looking statements, including statements relating to new products, goals and future business opportunities that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to: failure to meet financial and product expectations of analysts and investors: risk related to market acceptance of Vitria’s products and alliance partners’ products; deployment delays or errors associated with these and other products of Vitria and partners; hardware platform incompatibilities; the need to maintain and enhance certain business relationships with system integrators and other parties; the ability to manage growth; activities by Vitria and others regarding protection of proprietary information; release of competitive products and other actions by competitors; risks associated with possible delisting from the stock market on which Vitria’s securities are listed; and economic conditions in domestic and foreign markets. These and other risks related to Vitria are detailed in Vitria’s Annual Report on Form 10-K for the year ended Dec. 31, 2005, filed with the SEC on March 31, 2006. Vitria does not undertake an obligation to update forward-looking statements.

Vitria Technology, Inc.
Condensed Consolidated Balance Sheets
(in thousands)

	June 30,			December 31,
	2006			2005
	(Unaudited)			*
Assets
Current assets
Cash and cash equivalents	$	43,022		$	26,503
Short-term investments		10,931			34,979
Accounts receivable, net		9,632			7,846
Other current assets		1,439			2,181
Total current assets		65,024			71,509
Property and equipment, net		878			1,136
Other assets		755			743
Total assets	$	66,657		$	73,388
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	1,046		$	1,051
Accrued payroll and related		2,564			3,059
Accrued liabilities		3,555			4,184
Accrued restructuring expenses		2,317			3,460
Deferred revenue		12,392			10,242
Total current liabilities		21,874			21,996
Long-term liabilities
Accrued restructuring expenses		4,177			3,960
Other long-term liabilities		1,200			1,330
Total long-term liabilities		5,377			5,290
Stockholders’ Equity
Common stock		34			34
Additional paid-in capital		277,045			275,857
Accumulated other comprehensive income		500			515
Accumulated deficit		(237,677	)		(229,808	)
Treasury stock		(496	)		(496	)
Total stockholders’ equity		39,406			46,102
	$	66,657		$	73,388

* Derived from audited financial statements

Vitria Technology, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share information)

	Three Months Ended						Three Months Ended			Six Months Ended
	June 30,						March 31,			June 30,
	2006			2005			2006			2006			2005
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenues
License	$	2,701		$	2,146		$	2,521			5,222		$	7,568
Service and other		8,465			10,200			8,193			16,658			21,323
Total revenues		11,166			12,346			10,714			21,880			28,891
Cost of revenues
License		106			286			123			229			407
Service and other		3,614			5,292			3,950			7,564			10,974
Total cost of revenues		3,720			5,578			4,073			7,793			11,381
Gross profit		7,446			6,768			6,641			14,087			17,510
Operating expenses
Sales and marketing		4,320			4,893			4,118			8,438			9,928
Research and development		4,383			4,836			4,213			8,596			9,378
General and administrative		2,087			2,863			3,098			5,185			6,500
Restructuring charges		950			471			145			1,095			607
Total operating expenses		11,740			13,063			11,574			23,314			26,413
Loss from operations		(4,294	)		(6,295	)		(4,933	)		(9,227	)		(8,903	)
Other income, net		655			341			742			1,397			579
Net loss before income taxes		(3,639	)		(5,954	)		(4,191	)		(7,830	)		(8,324	)
Provision for income taxes		5			55			34			39			102
Net loss	$	(3,644	)	$	(6,009	)	$	(4,225	)		(7,869	)	$	(8,426	)
Basic and diluted net loss per share	$	(0.11	)	$	(0.18	)	$	(0.13	)		(0.23	)	$	(0.25	)
Weighted average shares used in calculating basic and diluted net loss per share		33,613			33,480			33,585			33,599			33,427

Reconciliation of GAAP and non-GAAP information:

	Three Months Ended						Three Months Ended			Six Months Ended
	June 30,						March 31,			June 30,
	2006			2005			2006			2006			2005
Total operating expenses	$	11,740		$	13,063		$	11,574		$	23,314		$	26,413
Stock-based compensation		(560	)		(21	)		(445	)		(1,005	)		(83	)
Restructuring charges		(950	)		(471	)		(145	)		(1,095	)		(607	)
Severance charges		—			(638	)		(75	)		(75	)		(645	)
Total non-GAAP operating expenses	$	10,230		$	11,933		$	10,909		$	21,139		$	25,078