Andromedia Announces Eighth Consecutive Record Quarter.

SAN FRANCISCO--(BUSINESS WIRE)--July 7, 1999--

Global revenues up more than 55% from previous quarter and more

than 380% from year-ago period; 16 new customers adopt Andromedia's Smart eMarketing software including Chase Manhattan Bank, Encyclopedia

Britannica, Toshiba, Office Depot, Medscape, Xerox, and Fox Home

Entertainment

Andromedia, Inc., a leading supplier of e-marketing software for e-commerce, today announced its eighth consecutive quarter of record revenue growth for the quarter closing June 30, along with a host of major new customers adopting the company's Smart eMarketing solutions.

Global revenue for software licensing and services rose more than 55% from the previous quarter and more than 380% from the year-ago period. In addition, Andromedia landed 16 new customers including Chase Manhattan Bank, Encyclopedia Britannica, Toshiba, Office Depot, Medscape, Xerox, and Fox Home Entertainment. Existing customers showed continued strong allegiance to Andromedia's solutions, expanding the purchase and deployment of Andromedia products, including Levi Strauss & Co., Bell South, DaimlerChrysler, Hallmark, UPS, StarMedia, Sun Microsystems, Amgen, and the U.S. Postal Service. Andromedia now has more than 120 customers for its Smart eMarketing software.

"We are thrilled to announce such a blue-chip line up of new and repeat customers as well as the close of our most successful quarter ever," says Paul Gifford, Andromedia President and COO. "Andromedia has tremendous momentum and is leading the pack in providing complete closed-loop e-marketing solutions for high-end e-commerce customers. To be successful on the Web today, marketers are increasingly realizing the need for our unique Smart eMarketing solutions which help them to better know their customers, increase customer loyalty, and drive revenues."

Robust sales are attributed to continued strong demand in the market for Andromedia's products and industry buzz generated by the groundbreaking results disclosed by Levi Strauss & Co. that quantifiably demonstrate the power of Andromedia's LikeMinds(tm) Personalization Server to drive higher revenue and increase profits for e-commerce sites. The data released by Levi's illustrates that LikeMinds personalization at www.levi.com increased customer spend rate and repeat visit rate by nearly one-third. In addition, average product views and the average time visitors spent shopping on the Levi site nearly doubled.

Andromedia also recently announced the general availability of PersonalARIA(tm) -- the industry's most customizable user interface for real-time web site activity reporting and analysis. PersonalARIA delivers high-value web site activity analysis to the fingertips of the online marketer. With PersonalARIA, marketers can on-demand create, save, and run customized reports in realtime using a simple point-and-click user interface.

Also during the quarter, Andromedia teamed with the Sun-Netscape Alliance, the leading provider of electronic commerce solutions, to develop interfaces between Netscape(R) SellerXpert and Andromedia's ARIA(R) and LikeMinds product lines to provide customers with superior one-to-one marketing capabilities. In addition, Andromedia announced a strengthened strategic alliance with BroadVision, the leading supplier of one-to-one e-business applications for relationship management across the extended enterprise. Andromedia and BroadVision will integrate ARIA with BroadVision's next-generation e-commerce solution to provide e-markets with high-value real-time reporting on customer shopping behavior. Movie Critic(R), Andromedia's award-winning movie recommendation site (www.moviecritic.com), was also named one of the world's top one-to-one customer relationship-building Web sites by one-to-one marketing gurus Don Peppers and Martha Rogers.

Andromedia Smart eMarketing

Smart eMarketing results from leveraging every step in the e-marketing value chain -- building user profiles; identifying patterns and relationships; determining the appropriate response and responding in realtime; and measuring results in order to refine the process. ARIA and LikeMinds together enable customers to create a better online experience and increase sales. ARIA captures, records and analyzes high-value data in realtime and reports 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.

About Andromedia

Founded in 1996, San Francisco-based Andromedia (www.andromedia.com) is the leading supplier of e-marketing software for e-commerce. Andromedia has more than 120 customers, including many of the largest sites on the Web. Major customers include Audi; Boston Herald; Cinemax; Columbia House; Computer Associates (NYSE:CA); Cyberian Outpost (Nasdaq:COOL); Intuit (Nasdaq:INTU); Levi Strauss & Co; Sony (NYSE:SNE); Sun Microsystems (Nasdaq:SUNW); the U.S. Postal Service; and The Weather Channel. Financial backers include Ares Management L.P.; Big Flower Holdings (NYSE:BGF); ABS Employee Ventures (affiliated with BT Alex. Brown); 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 (Nasdaq:ALLR), Art Technology Group, BroadVision (Nasdaq: BVSN), Computer Associates, EarthLink Network (Nasdaq:ELNK), Engage Technology, Hewlett-Packard (NYSE:HWP), NetGravity (Nasdaq:NETG), Netscape (Nasdaq:NSCP), Sun Microsystems, and Vignette (Nasdaq:VIGN).

Andromedia and LikeMinds are trademarks and ARIA and Movie Critic are registered trademarks of Andromedia, Inc.