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 THIRD QUARTER RESULTS

SUNNYVALE, Calif., October 24, 2006 Vitria (Nasdaq: VITR), an award-winning provider of business process integration solutions, today announced financial results for the third quarter ending September 30, 2006.

• For the third quarter of 2006, total revenue was $14.6 million, compared with $11.2 million for the second quarter of 2006 and $13.5 million for the third quarter of 2005.

• License revenue for the third quarter of 2006 was $5.6 million, compared with $2.7 million for the second quarter of 2006 and $3.9 million for the third quarter of 2005. One customer accounted for $3.7 million of the third quarter this year.

• Service and other revenue for the third quarter of 2006 was $9 million, compared with $8.5 million for the second quarter of 2006 and $9.6 million for the third quarter of 2005.

• Gross profit was $11.1 million for the third quarter of 2006, compared to $7.4 million for the second quarter of 2006 and $8 million for the third quarter of 2005.

• Total operating expenses were $10.9 million for the third quarter of 2006, compared with $11.7 million for the second quarter of 2006, and $10.4 million for the third quarter of 2005.

• Excluding charges for restructuring, severance and non-cash stock based compensation including (SFAS 123R), and $862 thousand in expenses related to the recently announced going-private transaction total operating expenses were $9 million for the third quarter of 2006, compared with $10.2 million for the second quarter of 2006, and $10.1 million for the third quarter of 2005.

• The net profit for the third quarter of 2006 was $781 thousand, or $0.02 per share, compared with a net loss of $3.6 million, or $0.11 per share, for the second quarter of 2006 and a net loss of $1.9 million, or $0.06 per share, for the third quarter of 2005.

• Total cash and short term investment balances as of September 30, 2006, were $50.9 million, compared to $54 million as of June 30, 2006.

The company announced in August that it would reduce its expense structure by between 20% and 25%. Most of those reductions occurred by September 30, and the company recorded a charge of $394 thousand in the third quarter related to these reductions.

Detailed comparative statements of operations and balance sheets 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: (800) 500-3170
— From international calling areas: (719) 457-2733

The confirmation code for both call-in numbers is 5045711 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, severance charges and expenses related to going-private transaction announced in September of 2006. 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.

Vitria excludes transaction costs associated with the going-private transaction announced in September 2006. Vitria’s management believes that these transaction costs have been incurred only as a result of that transaction, and does not consider these costs to be 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)

	September 30,			December 31,
	2006			2005
	(Unaudited)			*
Assets
Current assets
Cash and cash equivalents	$	34,497		$	26,503
Short-term investments		16,407			34,979
Accounts receivable, net		11,715			7,846
Other current assets		1,451			2,181
Total current assets		64,070			71,509
Property and equipment, net		891			1,136
Other assets		993			743
Total assets	$	65,954		$	73,388
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	929		$	1,051
Accrued payroll and related		2,535			3,059
Accrued liabilities		3,613			4,184
Accrued restructuring expenses		2,297			3,460
Deferred revenue		10,851			10,242
Total current liabilities		20,225			21,996
Long-term liabilities
Accrued restructuring expenses		3,698			3,960
Other long-term liabilities		1,012			1,330
Total long-term liabilities		4,710			5,290
Stockholders’ Equity
Common stock		34			34
Additional paid-in capital		277,967			275,857
Accumulated other comprehensive income		410			515
Accumulated deficit		(236,896	)		(229,808	)
Treasury stock		(496	)		(496	)
Total stockholders’ equity		41,019			46,102
	$	65,954		$	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			Nine Months Ended
	September 30,						June 30,			September 30,
	2006			2005			2006			2006			2005
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenues
License	$	5,616		$	3,929		$	2,701			10,838		$	11,497
Service and other		8,978			9,559			8,465			25,636			30,882
Total revenues		14,594			13,488			11,166			36,474			42,379
Cost of revenues
License		107			797			106			336			1,204
Service and other		3,365			4,711			3,614			10,929			15,685
Total cost of revenues		3,472			5,508			3,720			11,265			16,889
Gross profit		11,122			7,980			7,446			25,209			25,490
Operating expenses
Sales and marketing		3,983			4,806			4,320			12,421			14,679
Research and development		3,994			3,878			4,383			12,590			13,256
General and administrative		3,084			1,644			2,087			8,269			8,199
Restructuring charges/(credit)		(121	)		38			950			974			645
Total operating expenses		10,940			10,366			11,740			34,254			36,779
(Loss)/gain from operations		182			(2,386	)		(4,294	)		(9,045	)		(11,289	)
Other income, net		646			556			655			2,043			1,135
Net (loss)/gain before income taxes		828			(1,830	)		(3,639	)		(7,002	)		(10,154	)
Provision for income taxes		47			55			5			86			157
Net (loss)/gain	$	781		$	(1,885	)	$	(3,644	)		(7,088	)	$	(10,311	)
Basic net (loss)/gain per share	$	0.02		$	(0.06	)	$	(0.11	)		(0.21	)	$	(0.31	)
Diluted net (loss)/gain per share	$	0.02		$	(0.06	)	$	(0.11	)		(0.21	)	$	(0.31	)
Weighted average shares used in calculating
Basic net (loss)/gain per share		33,575			33,524			33,613			33,593			33,459
Diluted net (loss)/gain per share		33,590			33,524			33,613			33,596			33,459

Reconciliation of GAAP and non-GAAP information:

	Three Months Ended						Three Months Ended			Nine Months Ended
	September 30,						June 30,			September 30,
	2006			2005			2006			2006			2005
Total operating expenses	$	10,940		$	10,366		$	11,740		$	34,254		$	36,779
Stock-based compensation		(834	)		(22	)		(560	)		(1,819	)		(105	)
Restructuring charges		121			(38	)		(950	)		(974	)		(645	)
Severance charges		(367	)		(200	)		—			(442	)		(845	)
Going-private charges		(862	)		—			(60	)		(1,001	)		—
Total non-GAAP operating expenses	$	8,998		$	10,106		$	10,170		$	30,018			35,184