Alphablox Counters Economic Downturn with Significant Growth in 2001.

Business Editors/Technology Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 28, 2002

Blue-Chip Customers Leverage Alphablox Solutions to Optimize

Business Performance with Cross-Enterprise Intelligence

Despite a downturn in the US economy, Alphablox Corporation, the leading provider of infrastructure software for InLine Analytics, today announced that the company experienced strong sales and customer growth throughout 2001. The company grew its blue-chip customer base by 60 percent over 2000 year-end numbers and recorded sales growth of more than 97 percent. New customers signed include, Blue Cross/Blue Shield Insurance, Guardian Industries, Toys-R-Us, Union Planters, and Waste Management.

In addition to new customer growth, Alphablox continued to experience a high level of customer loyalty as more than one-third of its existing customer base made additional purchases of Alphablox products and services, accounting for a significant percentage of the company's overall revenue growth. These customers included, Agilent Technologies, ABN AMRO, Deutsche Bank, IBM, Royal Bank of Canada, and Telstra.

Alphablox's performance in 2001 is consistent with analysts' predictions for significant growth in key technology segments such as business analytics and the application server markets. Although IT spending budgets are projected to remain conservative in 2002, Thomas Weisel Partners, LLC, estimates the business analytics market will grow from approximately $10 billion in 2001 to greater than $28 billion in 2005 (representing a CAGR of 23 percent). SG Cowen lists business analytics in the top five IT spending priorities for 2002. Giga Information Group projects over 35 percent growth rate for application servers for the next five years.

According to Thomas Weisel's Tom Ernst, Alphablox is well positioned to take advantage of this projected growth: "Recent analytic software entrants are emerging for providing a platform for analytic application development and deployment. These are vendors that are marketing analytic application platforms, designing their products from the ground up to meet the goals of incremental rollout, low maintenance, high customization and integration. Free from the inertia of legacy architectures and sticky functional and vertical focus, platform vendors are marketing products that hit on the four elusive goals mentioned above. We believe these new solutions will resonate strongly with the very large analytic application 'build' market. Leading companies marketing the 'platform' vision today include Alphablox."

Alphablox continues to be recognized as a leader in this growing market, receiving numerous accolades from leading press and analysts over the past 12 months. In 2001, Alphablox was named one of the "Companies to Watch" by Intelligent Enterprise, a "Top 100 Emerging Company for 2002" by Computerworld, a Forbes.com "Company to Watch", and received an Investor's Choice Award from Technologic Partners.

"Today's economic climate has created a management crisis for business leaders, forcing them to make drastic business decisions in shorter periods of time--without the benefit of accurate or current information," said Polly Sumner, president and chief executive officer (CEO) of Alphablox. "Alphablox helps companies solve this management crisis. With Alphablox's analytic infrastructure software, companies have the flexibility they need to meet the varying information needs of their decision makers and benefit from a low total cost of ownership."

For example, Deutsche Bank, one of the leading international financial service providers with more than 97,000 employees worldwide, needed an analytic platform that could deliver mission critical applications across its organization. Michelle Schwabe, chief operating officer (COO) of Deutsche Bank Europe, turned to Alphablox to aggregate information across all of the countries in which Deutsche Bank operates, coordinating its various general ledger and CRM systems, and making that information available to users in real time, enabling them to take immediate action to capitalize on opportunities and mitigate risks. The Alphablox system was so widely accepted and adopted within Deutsche Bank that the company selected Alphablox as their analytic platform standard in October.

About Alphablox

Founded in 1996, Alphablox Corporation (www.alphablox.com) develops infrastructure software and solutions that enable Global 2000 companies to improve the predictability of their businesses and optimize profitability by integrating analytics with critical business processes throughout their enterprises. Alphablox provides the first Web-based infrastructure software that ensures the broadest deployment and in line delivery of critical information to operational decision makers so they can identify their most profitable opportunities and act on them in real time. The company's 100 percent component-based architecture ensures highly scalable and open standards-based integration with operational and transactional infrastructure and legacy systems. Alphablox serves Global 2000 organizations including ABN AMRO, British Airways, Cingular Wireless, Charles Schwab, Compaq, Deutsche Bank, FedEx, General Electric, Harley-Davidson, IBM, Motorola, Royal Bank of Canada, SBC, Sony, Telstra, Toys `R' Us International, and Xerox. Additional information on Alphablox Corporation and its products can be obtained by calling 888/256-9669 or via the company's Web site at www.alphablox.com.

Note to Editors: Alphablox and InLine Analytics are trademarks of Alphablox Corporation. All other trademarks are property of their respective owners.