Artificial Life Announces Full Integration of Instant Messaging and eCRM Technology.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 19, 2002

New York based Artificial Life, Inc (OTCBB: ALIF), a leading provider of intelligent and award winning smart bot and eCRM technology announced today that it has successfully integrated and combined state of the art instant messaging technology with its leading edge intelligent and natural language based eCRM technology.

The bots and intelligent agents can now be deployed using a single knowledge base with several independent bot processes and instances on all major customer directed electronic channels at the same time.

The Company announced that it has achieved a major milestone in its technology development by fully integrating all major electronic communication channels and technologies with its customer facing self-help, self-service and eCRM technology and SmartBot Suite(TM).

From now on customer communication can be fully or partially automated using a single knowledge base via a variety of independent electronic channels such as

-- Online Chat (with interface and forwarding to live operator)

-- Email

-- SMS Messaging

-- Instant Messaging (for all major providers)

The Alife eCRM SmartBot Suite provides natural language based automated email processing, live chat with call center agents and complete bot based automated web chat functionality.

"This is a great step forward for us and our clients. From now on customer service and call centers can use one integrated knowledge base and our data mining tools to interface with its customers through any of the most commonly used client facing in- and outbound electronic channels. The big advantage here is: only one knowledge base has to be developed and maintained but can be deployed in multiple, independent ways at the same time. This saves a tremendous amount of development cost and resources. In addition, our background eCRM statistic and analysis tools can automatically analyze all the user transactions and chats and will provide the intelligence needed for cross- and up-selling purposes," said Eberhard Schoneburg, CEO of Artificial Life, Inc.

About Artificial Life, Inc.

Founded in 1994, Artificial Life, Inc. (OTC BB: ALIF) develops, markets, and supports intelligent, award winning and patent pending software robots and is a leading provider of knowledge mining technology for Life Science applications and biotech solutions. The company offers a variety of unique product suites for web based applications such as self-help, self-service, consultative selling, e-CRM, e-Finance and Mobile Computing. Major customers of Artificial Life include, among others, Advance Bank, Credit Suisse First Boston, Eagle Star, Liechtenstein Global Trust, MobilCom, Pioneer Investments, PricewaterhouseCoopers, UBS and ZDF. Artificial Life, Inc. is headquartered in New York City, NY, U.S.A, and maintains a subsidiary in Hong Kong. Detailed information about Artificial Life, Inc. and its products is available at www.artificial-life.com; Contact: E.Schoeneburg, [e-mail]

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Artificial Life, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the "Risk Factors" described in the Company's Annual Report or Forms 10-K or 10-Q for the most recently ended fiscal year and quarter. All information set forth in this press release is as of March, 19, 2002, and Artificial Life, Inc. undertakes no duty to update this information unless required by law.