Borders Group Joins Epiphany and the American Marketing Association to Host Webinar on Driving Business Results Through Customer Loyalty.

SAN MATEO, Calif. -- Epiphany, Inc. (Nasdaq:EPNY), a leading provider of customer relationship management (CRM) solutions for consumer-oriented businesses, today announced it will host a free Webinar, "Leveraging Loyalty: How Intelligent Marketing Powers Results" on December 9th, 2004. Moderated by Andy Grieser of the American Marketing Association, and featuring Borders Group retail systems manager Jim Niva and Epiphany senior vice president of worldwide marketing Ellen Olson, the interactive event will discuss how businesses can enhance the long-term value of customers by creating a mutually beneficial relationship between company and consumer.

Borders Group will share how the company has effectively leveraged its investment in customer relationship management using Epiphany CRM solutions. With Epiphany Campaign Management, Borders Group is able to enhance the long-term value of its existing customers by creating a mutually beneficial relationship between the company and its customer base. By bringing together customer data from across the enterprise in Epiphany, Borders Group is able to target marketing materials and promotions to specific customers using transaction frequency, recency and revenue value information. Using Epiphany Campaign Management, Borders' targeted campaigns are getting better than twice the response rates of the previous non-personalized mass campaigns.

"As a destination shopping experience, we are constantly seeking ways to enhance the relationship between Borders and our customers," said Borders Group's Niva. "Epiphany helps us provide each individual customer with a tailored experience. This has led to an overall improvement in the customer experience as well as improved business results."

"Existing customers often represent a company's highest value asset," said Karen Richardson, CEO, Epiphany. "As outbound customer acquisition becomes increasingly regulated, costly, and less effective, customer loyalty is even more important. As demonstrated with Borders Group, Epiphany CRM solutions make every customer interaction more intelligent, helping to drive customer loyalty."

Event Details and Registration

The free Webinar "Leveraging Loyalty: How Intelligent Marketing Powers Results" will take place Thursday, December 9, 2004, at 11 am PT / 1 pm CT / 2 pm ET. To register, please visit http://www.marketingpower.com/webcast12-9.

About Epiphany

Epiphany(R) provides CRM software solutions that increase profitability at the largest consumer-oriented companies by making every customer interaction intelligent. With over 475 customers -- including nearly 35 percent of the Fortune 100 -- Epiphany powers deep customer insights and optimizes each relationship from both a revenue generation and customer retention viewpoint. Built on the industry's most advanced, service-oriented architecture, Epiphany software solutions address problems that span business silos, departmental functions and geographic locations, and result in rapid, measurable ROI. With a suite of blended marketing, sales and service solutions, Epiphany enables global organizations to align touchpoints, processes and technologies around the most valuable enterprise asset -- the customer. With worldwide headquarters in San Mateo, CA, Epiphany serves customers in more than 40 countries worldwide. For more information please visit www.epiphany.com

About Borders Group, Inc.

Borders Group, Inc. (NYSE:BGP) is a leading global retailer of books, music and movies with annual revenues of $3.7 billion. Headquartered in Ann Arbor, Mich., the company employs approximately 32,000 people worldwide. Borders Group operates over 460 Borders superstores and approximately 700 Waldenbooks stores throughout the U.S. In addition, the company operates 41 Borders superstores outside the U.S., as well as 36 Books etc. stores located throughout Great Britain. Borders Group recently acquired Paperchase Products Limited, a leading stationery retailer in the U.K. with 65 locations. Teamed with Amazon.com, online shopping is available through Borders.com (www.borders.com) and Waldenbooks.com (www.waldenbooks.com). More detailed information on the company is available at www.bordersgroupinc.com. Information regarding Borders store locations, in-store events and title reservation is available through www.bordersstores.com.

Safe Harbor Statement

This press release contains forward-looking statements relating to future results that may be achieved by customers using the Epiphany E6 software product and future sales opportunities. Actual results could differ materially from such forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include customers' individual purchasing decisions, competition and the introduction of new products and services by competitors, our ability to hire and retain qualified personnel, and general economic conditions. These factors and others are described in more detail in Epiphany's public reports filed with the Securities and Exchange Commission, such as those discussed in the "Risk Factors" section included in the Epiphany's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in the Epiphany's prior press releases. Epiphany assumes no duty to update any statements made in this press release.

Epiphany and the Epiphany logo are registered trademarks of Epiphany, Inc in the United States and other jurisdictions. All other trademarks are the property of their respective owners.