Andromedia Advances State of E-Marketing.

SAN FRANCISCO--(BUSINESS WIRE)--March 16, 1999--

Company Delivers Smart eMarketing Platform Combining Its

Award-Winning ARIA(R) Web Site Activity Analysis Software and

Market-Leading LikeMinds(TM) Personalization Server

Andromedia, Inc., which today announced it has secured $15 million dollars in strategic equity financing, also unveiled its Smart eMarketing Platform of products and initiatives for creating successful e-commerce Web sites.

Specifically, Andromedia is announcing four new products, a strategic relationship with BroadVision, support for the Information and Content Exchange (ICE) protocol, and partnerships with leading e-commerce platform vendors.

"Measurement, analysis, and personalization are the keys to successful Web marketing," says Kent Godfrey, Andromedia CEO. "With ARIA(R) and LikeMinds(TM), online marketing professionals get the ultimate marketing platform -- a complete solution that takes Web site visitor behavior data and in realtime turns it into proactive marketing programs that drive revenue and increase profits.

"Andromedia's Smart eMarketing software and services deliver the most proven, powerful and seamless e-marketing solution available in the marketplace today."

In support of today's announcement, next week Andromedia will announce: -0-

--   Shipment of ARIA 3.0 and ARIA Enterprise 3.0 -- the most advanced
     and comprehensive realtime Web site activity analysis software
     for online marketers and Web site developers who must measure the
     effectiveness of their online objectives and need the most
     comprehensive view of their online businesses.
--   Availability of ARIA eCommerce 3.0 -- the world's first online
     shopping analysis solution that integrates with third-party
     e-commerce platforms to report on actual customer shopping
     behavior in realtime.
--   Shipment of LikeMinds Personalization Server 2.2 -- the most
     accurate and robust e-commerce personalization software
     available.
--   Strategic Alliance with BroadVision -- to provide e-commerce
     merchants first-of-its-kind "high-value" data analysis and
     reporting, enabling them to more effectively manage their online
     businesses.
--   Strategic Partnerships -- ATG, Vignette, BroadVision, Allaire,
     and Netscape announce support for Andromedia to provide
     "high-value" data analysis to their customers.

-0-

Analysis Plus Personalization Equals "Smart eMarketing"

Smart eMarketing comes from leveraging every step in the e-marketing value chain -- building user profiles, identifying patterns and relationships, determining the appropriate response, responding in realtime, and measuring results in order to refine the process.

Andromedia's Smart eMarketing Platform uses ARIA Web site activity analysis software to capture, record and analyze high-value data in realtime and report on customer behavior that is meaningful to an online business. LikeMinds Personalization Server makes e-commerce personal, engaging customers with highly accurate product recommendations and delivering personally relevant content that helps them decide what to try and what to buy.

"Andromedia's Smart eMarketing Platform offers a strong value proposition," says Donovan Gow, research analyst, Customer Interaction Software, Aberdeen Group. "Web marketers will now be able to implement an integrated, closed-loop solution that allows them both to analyze the success of their Web marketing efforts and personalize offerings to customers' needs in realtime. E-marketing solutions such as Andromedia's Smart eMarketing Platform will soon be requisite to success on the Web."

eMarketing Taking Industry by Storm

According to a recent research report published by investment banking firm C.E. Unterberg, Towbin, entitled, eMarketing: Nothing but' Net, "a new breed of company, the e-marketer, is taking the industry by storm."

The e-marketing industry consists of three segments: online advertising and promotions, interactive marketing services, and interactive marketing software. The interactive marketing software segment is expected to grow at a four-year compound annual growth rate of 52%, reaching a $16 billion opportunity in 2002, according to the report.

"The e-marketer (software company) has emerged in response to the growing demand for interactive marketing services and the inability of traditional agencies to provide these services," says Tara Long, analyst, C.E. Unterberg, Towbin.

"E-marketing solutions like those from Andromedia enable businesses to build and maintain customer relationships over the Internet and tailor and customize Internet communications for enhanced customer interactions. In addition, Andromedia's Smart eMarketing software personalizes a user's experience based on his/her preferences, streamlines customer interactions to enhance customer service, and helps to target promotions."

Andromedia Partners to Provide High-Value Data and Reporting

Web sites generate tons of potentially valuable data. The challenge facing e-marketers is to identify and capture the highest-value data to avoid data overload and "analysis paralysis."

The most valuable marketing information comes from the data generated while the customer is interacting on the Web site. For effective e-marketing, it's important to know who's on the site, where they came from, what they're interested in, and to be able to act on this information in realtime.

Andromedia's Network Monitor, Server Plug-In Monitors, and new Application Monitors provide marketers with the most comprehensive view of the customer and the most complete view of the site.

Andromedia and BroadVision, working with leading e-commerce vendors, collaborated to build the first application monitor to provide e-marketers the detailed analysis they need to manage their online businesses.

With Andromedia's new ARIA Application Monitors, for the first time online markers will be able to track and record what is going on inside applications built with leading e-commerce application development platforms including BroadVision's One-to-One Enterprise; Art Technology Group's Dynamo; Netscape's Application Server; and Allaire's ColdFusion.

This deeper integration provides marketers the highest-value data analysis and reporting available -- data not available by analyzing log files or even accessible using conventional "packet-sniffing" technology used by all other Web site activity analysis software.

"Andromedia's Application Monitors help businesses maximize the value of their e-commerce sites," says Lee Fife, partner at Fastwater LLP. "By providing the most comprehensive view of online shopping behavior, the ARIA Application Monitors enable e-marketers to use Andromedia's realtime analysis to answer business-critical questions to refine their site navigation, promotions, and merchandizing, and to create a better user experience, leading to increased sales."

Andromedia Embraces ICE Standard

Andromedia has embraced the ICE (Information and Content Exchange) protocol and will introduce the ARIA Event Syndicator Module to make ARIA's high-value, realtime data available to third-party applications. The ICE specification describes a protocol for syndicating content. More generally, it describes a means for applications to publish and subscribe to well-formed data messages.

The ARIA Event Syndicator Module uses ICE to publish data from ARIA and to allow ARIA to subscribe to data from ICE-compliant data sources. Andromedia is also developing an ICE module for LikeMinds Personalization Server, which will enable LikeMinds to subscribe to any ICE-compatible data source.

"The primary benefit to our end users is that ICE provides a complete solution for syndicating any type of information between information providers and their subscribers," says Scott Capdevielle, Andromedia CTO.

"Because the ICE protocol uses the XML-structured data format for data passed between syndicators and subscribers, it is easy for third parties to use the published data in data-centric applications. In other words, ARIA will easily integrate with applications that would benefit from data stored in ARIA, such as personalization engines, ad servers, or data-mining applications."

About Andromedia

Founded in 1996, San Francisco-based Andromedia (www.andromedia.com) is the leading supplier of e-marketing software for e-commerce. Andromedia provides Smart eMarketing software comprised of the ARIA and LikeMinds product lines, enabling customers to create a better online experience and increase sales.

ARIA, winner of CNET's Builder.com 1998 Product Award for "Best Traffic Analysis Tool," analyzes high-value data in realtime and reports on customer information that is critical to managing online business effectively. LikeMinds Personalization Server efficiently personalizes each and every customer interaction, providing realtime response to customers' needs.

Andromedia has more than 100 customers, including many of the largest sites on the Web. Major customers include Audi; Boston Herald; Cinemax; Columbia House; Computer Associates; Cyberian Outpost; Intuit; Levi Strauss & Co; Sony Corporation; Sun Microsystems; the U.S. Postal Service; and The Weather Channel. To date, the total outside investment in Andromedia is $30.7 million.

Financial backers include ABS Employee Ventures (affiliated with BT Alex.Brown); Ares Management L.P.; Big Flower Holdings; C.E. Unterberg, Towbin; Draper International; JK&B Capital; Platinum Ventures; Sippl Macdonald Ventures; SOFTBANK Holdings; Travelers Insurance; UBS Capital; and Westbury Capital Partners.

Strategic partners include Allaire, Art Technology Group, BroadVision, Computer Associates, EarthLink Network, Engage Technology, Hewlett-Packard, NetGravity, Netscape, Sun Microsystems, and Vignette.

Note to Editors: Andromedia and LikeMinds are trademarks and ARIA a registered trademark of Andromedia, Inc. All other brand names are trademarks or registered trademarks of their respective holders and hereby acknowledged.