Exhibit (a)(5)

        MERCATOR ANNOUNCES STOCK OPTION EXCHANGE PROGRAM FOR EMPLOYEES

WILTON, Conn. - September 17, 2001 - Mercator(R) Software, Inc., (NASDAQ: MCTR),
today announced a voluntary option exchange program for its employees ). The
program, which is not available to Mercator directors and senior and corporate
vice presidents, is designed to allow option holders to exchange their current
stock options for new options.

Under the exchange program, for every two options tendered and cancelled one new
option will be issued. The new options will be granted no earlier than six
months and one day after the cancellation. The exercise price of the new options
will be the fair market value of Mercator's common stock on the date of grant.
Mercator expects that it will not be subject to variable accounting as a result
of the stock option exchange program.

Mercator Chairman, CEO and President Roy C. King said, "The purpose of this
stock option exchange is to retain and motivate our employees. Their hard work
is critical to our success and they deserve to be able to share in the rewards
as we begin to meet our goals."

About Mercator

Mercator Software's intelligent business integration solutions unify any
internal operations and connect them with partners and customers, while
leveraging current technology investments. Over 5000 businesses in financial
services, healthcare, utilities, manufacturing, retail and distribution use
Mercator software to maximize their performance. Additional information about
Mercator (Nasdaq: MCTR) may be found at www.mercator.com.
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Mercator is a registered trademark of Mercator Software, Inc.

Legal Notice Regarding Forward-Looking Statements

Statements in this press release that are not purely historical are forward-
looking statements, including statements regarding Mercator Software's beliefs,
expectations, hopes or intentions regarding the future.  Forward-looking
statements in this release include, but are not limited to, statements regarding
the growth of the enterprise application market, the demand for the company's
application integration solutions and the speed of deployment of new products,
including combined Mercator e-business integration broker products.   It is
important to note that actual outcomes and the company's actual results could
differ materially from those in such forward-looking statements.  Factors that
could cause actual results to differ materially include risks and uncertainties
such as changes in demand for application integration or e-business integration
software and the company's Mercator e-business integration broker suite of
products in particular, the ability of the company to expand its international
operations, the ability of the company to manage expanded global operations, the
ability of the company to continue to add resellers and other distribution
channels, and the success of third parties in utilizing and marketing the
company's products, the Company's ability to raise financing, or seasonality in
operating results.  Readers should also refer to the risk disclosures outlined
in the company's reports filed with the Securities and Exchange Commission.  All
forward-looking statements and reasons why results might differ included in this
release are made as of the date hereof, based on information available to the
company as of the date hereof, and the company assumes no obligation to update
any such forward-looking statement or reasons why results might differ.