Broadbase Software's eService Solution Receives Coveted Product of the Year Award; Communications Solutions Magazine Selects Intelligent E-Service Suite For Annual Honor.

Business/Technology Editors

MENLO PARK, Calif.--(BUSINESS WIRE)--Jan. 8, 2001

Broadbase Software, Inc., (NASDAQ: BBSW), the leading provider of intelligent customer interaction software today announced that its E-Service suite (formerly Servicesoft(R) 2001(TM)), that enables businesses to provide extraordinary, proactive customer service via the Internet, has been selected as Product of the Year by Communications Solutions Magazine.

Leading companies such as Eddie Bauer, Palm Computing, Polycom and Motorola have selected the Broadbase E-Service suite as their end-to-end customer care solution to ultimately provide customers with intelligent interactions via the Internet. As a result, 2001 marks the second year in a row that the company has received a prestigious TMC award for product innovation and outstanding performance.

"The Broadbase E-Service suite offers the most intelligent eService solution available today and the honors and the accolades the product has received from both industry observers and our growing customer base demonstrate the outstanding value the solution provides," said Jeff Whitney, SVP of Product Marketing for Broadbase Software. "From small and medium-size organizations to Fortune 1000 companies, Broadbase E-Service empowers all businesses to provide stellar service that helps them retain customers and grow their existing customer base."

Broadbase's E-Service solution is the only eService suite that enables companies to provide extraordinary customer service by empowering every customer service representative with the knowledge of a company's best agent. The intelligence built into Broadbase E-Service allows customer questions to be answered accurately, consistently, quickly and professionally.

"As the industry matures, we're finding more than just products and services on the market -- entire solutions are being offered," said TMC president and group publisher Rich Tehrani. "The Product of the Year award is given to those select products, such as Broadbase E-Service, that deserve the attention of forward-thinking organizations looking for intelligent and industry-leading solutions

Communications Solutions(TM) magazine initiated the Product of the Year award program to help its readers identify the most innovative new products and services in the marketplace. The awards are selected by the editors of Communications Solutions(TM) and the engineers of TMC Labs, honoring all of the leading vendors' best and brightest accomplishments that took place during the 2000 calendar year.

About Broadbase

Broadbase Software is the leading provider of customer-focused analytic and marketing automation applications that analyze customer data from multiple touch points, and use that information to execute marketing campaigns, improve online merchandizing and content, increase site stickiness and personalize all customer interactions. Broadbase applications are designed for rapid time to value and have been implemented in as few as fifteen days. Broadbase has provided critical e-commerce infrastructure to more than 450 customers, including ADP, BEA Systems, Cisco Systems, Fidelity Investments, Hewlett Packard, InsWeb, Kodak, LoanCity.com, Mercata.com, Onvia.com and United Airlines. Headquartered in Menlo Park, CA, Broadbase has a rapidly growing global presence with locations throughout North America, Europe and Asia.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995:

Information in this release that involves Broadbase's expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve risk and uncertainties. All forward-looking statements included in this release are based upon information available to Broadbase as of the date of this release, and Broadbase assumes no obligation to update any such forward-looking statement. These statements are not guarantees of future performance and actual results could differ materially from Broadbase's current expectations. Factors which could cause or contribute to such differences include, but are not limited to, lack of market acceptance of Broadbase's products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by competitors; and inability to attract and retain qualified employees. These and other factors and risks associated with Broadbase's business are discussed in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 13, 2000.

Broadbase is a trademark of Broadbase Software, Inc. All other product and company names may be trademarks of their respective companies.