<PAGE>   1

                                                                    EXHIBIT 99.1

INFORMATION INCORPORATED BY REFERENCE FROM ITEM 15 OF FORM S-1 REGISTRATION
STATEMENT OF WEBMETHODS, INC.

During the past three years, the registrant has issued unregistered securities
to a limited number of persons as described below. The share numbers and prices
per share in items one through nine have not been adjusted to reflect any stock
splits. The share numbers in item ten have been adjusted to reflect stock
splits.

                1. On June 13, 1996, the registrant issued to two founders
        15,000 shares of common stock of the registrant valued at $10.00 per
        share in exchange for the technology for the Web Automation Toolkit, for
        an aggregate transaction value of $150,000.

                2. On January 8, 1997, the registrant issued and sold 5,305
        shares of common stock to a total of 8 investors for $72.75 per share,
        or an aggregate of $385,938.75.

                3. On October 22, 1997 the registrant issued and sold a warrant
        to purchase 500 shares of common stock in connection with a financing
        transaction. The warrant was exercised on December 28, 1998.

                4. On October 23, 1997, the registrant issued an aggregate of
        47,174 shares of mandatorily redeemable, convertible Series A preferred
        stock in exchange for the common stock issued to the 8 investors in
        January 1997.

                5. On November 7 and December 30, 1997, the registrant issued
        and sold an aggregate of 180,750 shares of mandatorily redeemable,
        convertible Series B preferred stock to a total of 31 investors for
        $20.00 per share, or an aggregate of $3,615,000.

                6. On September 22, 1998, the registrant issued and sold an
        aggregate of 195,783 shares of mandatorily redeemable, convertible
        Series C preferred stock to a total of 5 investors for $33.20 per share,
        or an aggregate of $6,499,995.60.

                7. On March 1, 1999, the registrant issued and sold a warrant to
        purchase 4,000 shares of common stock in connection with transactions
        contemplated by a lease of property by the registrant.

                8. On May 12, June 1 and June 15, 1999, the registrant issued
        and sold an aggregate of 134,075 shares of mandatorily redeemable,
        convertible Series D preferred stock to a total of 47 investors for
        $88.40 per share, or an aggregate of $11,852,230.

                9. On November 4, 9, 10 and 12, 1999, the registrant issued and
        sold an aggregate of 68,770 shares of mandatorily redeemable,
        convertible Series E Preferred Stock to a total of five investors for
        $247.20 per share, or an aggregate of $16,999,944.

                10. As of December 31, 1999, an aggregate of 751,515 shares of
        common stock had been

<PAGE>   2

        issued upon exercise of options under the registrant's stock option
        plan.

        On October 27, 1997, the registrant effected a split of its common stock
in the form of a stock dividend of 7.8915234 shares of common stock for each
share of common stock outstanding as of October 10, 1997. On March 18, 1998 the
registrant effected a split of its common stock in the form of a stock dividend
of 19 shares of common stock for each share of common stock outstanding as of
March 5, 1998. On January 20, 2000, the registrant's board of directors approved
a 1.533 for one stock split of its common stock.

        None of the foregoing transactions involved any underwriters,
underwriting discounts or commissions, or any public offering, and the
registrant believes that each transaction was exempt from the registration
requirements of the Securities Act of 1933, as amended, by virtue of Section
4(2) thereof, Regulation D promulgated thereunder or Rule 701 promulgated under
Section 3(b) thereof, pursuant to compensatory benefit plans and contracts
relating to compensation as provided under such Rule 701. The recipients in such
transactions represented their intention to acquire the securities for
investment only and not with a view to or for sale in connection with any
distribution thereof, and appropriate legends were affixed to the share
certificates and instruments issued in such transactions. All recipients had
adequate access, through their relationships with the registrant, to information
about the registrant.