Andale Rides Online Auction Boom with Help from eGain eServices Solutions; Timely Web Site Updates & Generation of Frequently-Asked-Questions Reduces Common eMail Inquiries by 50%.

Business Editors/High-Tech Writers

eGain Communications Corporation (Nasdaq:EGAN), a leading provider of eService software for the Global 2000, has been chosen by the prominent online commerce management tool company, Andale, to provide a suite of solutions for maintaining and managing relationships with its own customers.

As the engine behind more than 75% of all sales on eBay, as well as numerous other auction and online store transactions, Andale has a huge customer base of over one million customers- and an equally large customer service challenge. With the help of eGain solutions, the company has achieved two major goals:

-- a 50% reduction in emails that require manual responses over the last 6 months, despite an increase in Andale's customer base. This reduction was achieved by transferring much of the customer support burden to Web self-service.

-- same-day response capability for the roughly 5,000 e-mail inquiries per month that still require a response from an agent.

To address the first goal, Andale uses eGain Inform, a Frequently-Asked-Question (FAQ) system that links eGain's e-mail response system with the FAQ page on the company's Web site, so that new questions and answers can be easily added to the FAQ list. In addition to reducing e-mail traffic, this approach dramatically boosts the value of Andale's FAQ list to customers seeking information.

Most FAQ lists are based on speculation. They are the questions companies think people will ask. In contrast, the questions on the Andale list are based on real experience -- they actually represent the questions people frequently ask. As a result, Andale's FAQs are statistically much more likely to satisfy the needs of visitors, as demonstrated by the decline in e-mail inquiries.

The customer support issues that can't be handled via FAQs are managed by eGain Mail, which provides a number of important features such as automatic routing to agents based on keywords, load balancing, and over 100 detailed reports, both scheduled and in real-time, to help system administrators track productivity, customer behavior, and overall trends.

The fact that eGain is Web-based is a bonus for Andale, as it allows agents to work remotely. This flexibility can be a significant factor in helping the company retain its experienced agents, resulting in more knowledgeable service and lower training costs.

"Our overall philosophy of customer service is to be analytical and proactive, and eGain gives us the tools we need to succeed, both in anticipating customer needs and meeting them," said Andale's vice president of customer relations, Dan Russo. "We are also extremely pleased with the support eGain provides to us as a customer. They have always been super-responsive and never leave an issue unresolved -- they have great follow-up."

"We are delighted that our solutions are making an important contribution to Andale's success," said Gunjan Sinha, president of eGain. "It is clear that excellent customer service is extremely important to the success of e-commerce ventures, and we are focused on helping companies provide the highest levels of customer satisfaction at the lowest possible cost."

Online auctions have proved to be one of the most resilient forms of e-commerce. According to Forrester Research, respondents to a recent survey indicated that they made 10 percent of their online purchases on eBay. Forrester estimates that auctions will make up 25% of online consumer purchases by 2006, up from roughly 16% at the close of 2001.

Sean Kaldor, vice president of e-commerce at Nielsen/NetRatings, says United States online auction spending increased to $389 million in August 2001, up from $238 million during the same period last year. The notion that auctions are for niche sellers, says Kaldor, appears to be untrue.

About Andale

Andale is the leading provider of commerce management tools and services used by more than one million small businesses for automating and integrating all aspects of online selling across multiple channels, including auctions, e-commerce stores, direct mail, and Web sites anywhere.

Andale merchandising, inventory, finance, customer communications, and supplier sourcing management tools allow users to manage multiple market sales from a single location, helping today's online businesses dramatically increase their overall revenue.

Over the last year, Andale sellers were responsible for approximately $3 billion in gross merchandise sales online, and now drive more than 75% of all listings on eBay each week.

Andale customers are high-volume auction sellers, small online businesses, small-to-medium size enterprise businesses, and brick-and-mortar retail organizations looking to leverage new online commerce channels.

About eGain Communications Corporation

eGain (Nasdaq:EGAN) is a leading provider of eService software. Selected by 24 of the 50 largest global companies to improve phone and Web-based customer service, eGain solutions increase service efficiency and customer retention -- thus delivering a significant return on investment (ROI). eGain eService Enterprise - the company's integrated software suite -- includes applications for email management, Web collaboration and self-service, and enterprise-wide knowledge management. eGain has an operating presence in 18 countries and serves more than 800 enterprise customers worldwide - including Vodafone, DaimlerChrysler, and ABN AMRO Bank. To learn more about eGain, please visit http://www.eGain.com or call the company's offices - United States: [phone]; London: [phone]; or Sydney: [phone].

Trademarks: eGain, the eGain logo and all other eGain product names and slogans are trademarks or registered trademarks of eGain Communications Corp. in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of their respective companies.

Cautionary Note Regarding Forward-looking Statements: All statements in this release that involve eGain's plans, forecasts, beliefs, projections, expectations, strategies and intentions are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on information available to eGain at the time of this release, are not guarantees of future results; rather, they are subject to risks and uncertainties that may cause actual results to differ materially from those set forth in this release. These risks include, but are not limited to, the challenging economic environment; the uncertainty of demand for eGain products; the anticipated customer benefits from eGain products; increased competition and technological changes in the markets in which eGain competes; eGain's ability to manage its expenditures; and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K filed on September 28, 2001, and the company's quarterly reports on Form 10-Q. eGain assumes no obligation to update these forward-looking statements.