Betasphere Selected as a Top Ten CPC Vendor by Aberdeen Group.

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--JULY 25, 2001

Selection Based on Findings of Quantifiable Business

Benefits and Measurable ROI in Improving

Product Quality and Customer Satisfaction

BetaSphere, the leading provider of software and services that enable customer-centric product development, today announced its selection by Aberdeen Group as a CPC Top Ten Finalist in its What Works(TM) report. This report documents the best examples of CPC (Collaborative Product Commerce) solutions in action that have had a material impact on an adopting business unit or company. Aberdeen selected finalists based on the quantifiable benefits and positive ROI that resulted from the implementation of nominated solutions.

"Competitive pressure is driving the need for manufacturers to collaborate and share information across the entire life cycle of a product. One critical component in this process is collaboration with customers, and integrating that feedback into the development process," stated Jack Maynard, research director for Aberdeen Group. "We evaluated BetaSphere's Feedback Management Server based on the quantifiable results that one of BetaSphere's customers, Snap Appliances, experienced using this solution. We found that BetaSphere delivered compelling benefits and measurable ROI that significantly impacted Snap's success in raising product quality and increasing customer satisfaction."

BetaSphere was evaluated based on the results Snap Appliances experienced during collaborations on several critical beta and customer acceptance testing programs, including those for the Snap Server(R) 1000, the Snap Server 4000, and the Snap Operating System Version 3.0. Through these programs, Snap Appliances(TM) was able to significantly improve product quality, shorten development cycles, free valuable engineering resources, and improve customer satisfaction while reducing support costs.

Specifically, through the use of BetaSphere's Feedback Management Server(TM) (FMS) solution, Snap Appliances was able to nearly quadruple the amount of customer feedback they received during product testing. The improved system allowed Snap Appliances to ship products to market several weeks sooner, a critical edge in the fast moving high-tech marketplace. This solution also saved product managers between 10-20 hours a week for the duration of the program and cut the drain on engineering resources by approximately 30 percent. They were also able to identify key product improvements that they were able to implement prior to First Customer Ship (FCS).

"For many companies, measuring the business value of their solution is a struggle. For BetaSphere, it is our strength. Our customers repeatedly recognize dramatic return on investment by implementing our FMS software and services," said Phil Davis, vice president of strategic direction and marketing at BetaSphere. "Collaboration with customers during product development is such a critical component in any company's overall business strategy, the resulting benefits, like those from Snap Appliances, speak for themselves."

A recent study by Accenture documented the ROI customers experienced using BetaSphere's FMS solution. To request a copy of this report, "Effectively Incorporating Customer Feedback into the New Product Development Process, A Strategic Value Assessment," please contact BetaSphere at [e-mail]. For more information about BetaSphere and the Feedback Management Server, please visit www.betasphere.com or call 888/238-2243 ext. 850. For more information about Aberdeen Group, or to order a copy of the What Works report, visit www.aberdeen.com.

About BetaSphere

BetaSphere is the leading provider of software and services that enable customer-centric product development. BetaSphere's Feedback Management Server(TM) (FMS) platform integrates customer feedback into the development process, enabling companies to increase market acceptance and lower technical risk when bringing new products to market. Over 100 market leading companies including HP, Motorola, Cisco Systems, Federal Express, Excite@Home, iPlanet, Lucent, Xircom, Adaptec, Xerox, Sun, and Palm use BetaSphere solutions to develop the right products -- faster, better, and with fewer resources. BetaSphere is headquartered in Palo Alto, Calif. For more information on BetaSphere, visit www.betasphere.com.