Blue Martini and Cornerstone Retail Solutions Announce First Clicks-and-Mortar Integrated Commerce Solution.

Business, Retail & High Tech Editors

NEW YORK--(BUSINESS WIRE)-- Jan. 17, 2000

In-store Point-of-Sale Systems Linked to Internet Commerce

Infrastructure

at the 89th NRF Conference-- Blue Martini Software, a leading provider of enterprise-applications for e-merchandising, e-marketing, and e-service, today announced that it is integrating the Blue Martini Customer Interaction System(TM) with Cornerstone Retail Solutions' Java-based in-store and Web-based retail application suite. Cornerstone's ExtendYourStore suite consists of POS, gift registry/wish list, and integrated commerce products. The Cornerstone-Blue Martini software represents the industry's first true integration between a retail POS system and an enterprise e-commerce software.

Serve Customers Across Web and Bricks-and-Mortar Channels

The partnership helps traditional retailers leverage their existing brick & mortar stores so that customers can enjoy both the convenience of the Web and the benefits of a neighborhood store presence. The Blue Martini-Cornerstone integration also addresses retail activities that span the Web and the store such as returns management, multi- channel promotions, and loyalty programs. Redeeming a Web-generated coupon in the store is one example of the convenient, cross-channel shopping demanded by today's consumers. "Retailing is no longer about the Internet versus bricks and mortar. The new retail business model will be an integrated model and we expect that the customer will grow to expect a consistent and convenient way of doing business across all channels." said Will King, Senior Vice President, Cornerstone Retail Solutions.

The integration also addresses a common problem found in high-touch merchandise categories like fashion apparel and hard goods. "Shoppers are using the Web to study options and narrow their choices before they make a purchase," said Monte Zweben, president and CEO of Blue Martini Software. "Our integration with Cornerstone closes the gap between these complementary channels, embracing the way customers want to shop." Concluded Zweben, "The bricks & mortar store is a low-cost avenue to acquire customers for a Web site, just as the Web is a low-cost channel to merchandise assortments."

Merchandise Returns, Same-Day Pick-up, Cross-channel Cross-sell

A variety of compelling, cross-channel innovations are made possible by this integration. For example, merchandise returns have long been an issue in Web sales. With the Cornerstone-Blue Martini integration, a customer who wishes to return a product first obtains a return merchandise authorization (RMA) on the Web, explaining the reason for the return. Blue Martini proposes alternative merchandise designed to preserve the sale. Prepared with the RMA, the customer only has to drop-off or exchange the physical product at the store--where a customer service representative is prepared to present alternative products.

Similarly, rather than depending on delivery services, customers can shop and order on the Web and pick up merchandise that same day in a neighborhood store. Because the Cornerstone-Blue Martini integration shares customer and transaction data, the store can serve as a fulfillment center.

Finally, Blue Martini's data mining facilities analyze this same transaction data to generate rules for cross- and up-selling. Sales associates use these cross-sell and up-sell suggestions through the Cornerstone POS to raise shopping basket values in the store, just as Blue Martini Customer Interaction System uses them to raise basket values on the Web.

About Cornerstone Retail Solutions

Cornerstone Retail Solutions enables multi-channel retailing practices through Java-based applications--point-of-sale (POS), integrated commerce, and gift registry/wish list. Cornerstone's ExtendYourStore(TM) suite empowers retailers to increase profits by extending their brand to capture customers whenever and wherever they shop - in the store, on kiosks, on the Internet and via handheld devices. Cornerstone customers include leading retailers such as Burlington Coat Factory, Cole National, Home Depot, Meijer and Sears. For more information, visit www.cornerstoneretail.com.

About Blue Martini Software

The Blue Martini Customer Interaction System is the leading enterprise-scale Internet application for interacting live with customers. Companies can build brand equity and raise revenues across all sales channels by interacting with customers through call centers and Web sites with Blue Martini's facilities for e-merchandising, e-marketing, and e-service. Blue Martini helps merchants and marketers present fresh content and product assortments to targeted micro-segments, and deliver high quality services to customers.

Deployed Blue Martini customers include Internet pure play Gloss.com and world-class manufacturers Harley-Davidson and Levi Strauss & Co. Other customers with sites in preparation include leading retailer Gymboree Corporation and Internet pure play gazelle.com. For more information, contact Blue Martini Software at 2600 Campus Drive, San Mateo, Calif., 94403; phone [phone]; fax [phone]; www.bluemartini.com.

Note to editors: Blue Martini Software and the Blue Martini Customer Interaction System are trademarks of Blue Martini Software Inc. ExtendYourStore is a trademark of Cornerstone Retail Solutions. All product names and references contained herein remain the property of their respective owners.