Broadbase Software Experiences Rapid Pan-European Growth.

Business/Technology Editors

MENLO PARK, Calif.--(BUSINESS WIRE)--April 2, 2001

Company Expands European Presence with Operations in 10 Countries

and Signs on Industry Leaders British Telecom, Sony and Xerox

Broadbase Software (NASDAQ:BBSW), the leading provider of intelligent customer interaction software, today announced that it has expanded its European operations across ten countries and is gaining significant momentum in Europe, as eCRM strategies become vital to business success. Fuelled by strategic acquisitions and an influx of recent customers wins such as Telia, KPN Qwest, and Motorola, Broadbase is well positioned for eCRM market leadership in Europe.

Broadbase Software currently works with more than 60 European customers that are leveraging the power of Broadbase's intelligent eCRM solution that creates extraordinary customer interactions while also cutting costs and delivering rapid time-to-value. To meet the increasing demand in Europe for effective eCRM solutions, Broadbase now has European operations in 10 countries including operations in Paris, Frankfurt, and Stockholm and new European headquarters in Amsterdam.

Having initially opened the European, Middle East and African (EMEA) markets with a direct sell operation, Broadbase's recent shift to a multi-channel strategy has increased its footprint substantially. Leveraging the niche expertise of its existing network of resellers, distributors, systems integration partners and a direct sales force, Broadbase continues to solidify its position as a worldwide leader in the eCRM space.

"Broadbase has a proven track record of helping Global 2000 organizations get closer to their customers by providing the platform for intelligent, automated and extraordinary customer interactions," said Alf Saggese, Managing Director of EMEA, Broadbase Software. "As we continue to penetrate the European market, we look forward to further revolutionizing the way businesses work with their customers by empowering them with eCRM capabilities that will allow them to maximize the value of each customer on a consistent basis."

With an estimated 500 million people on-line by 2004, Datamonitor research indicates that e-commerce revenues in Europe will grow to more than $172.6 billion by the end of 2004, representing a cumulative average growth rate (CAGR) of 111 percent annually. This increased Internet use will lead to customers demanding a higher level of service and intelligent on-line interactions. As a result, there is a need for an effective eCRM solution like Broadbase's that combines robust E-Commerce and E-Marketing along with the most effective E-Service product on the market today.

"Broadbase is committed to the European market and is seeing tremendous traction for our eCRM solution with some of Europe's leading organizations," said Chuck Bay, president and CEO of Broadbase Software. "Customer demand is going to force companies in Europe and around the world to look closely at eCRM technology. Broadbase Software is perfectly positioned to capitalize on this demand by delivering on the promise of intelligent customer interactions."

To build on its growth and commitment to this region, Broadbase recently implemented a dedicated customer support system for Europe. By developing this European-based customer service infrastructure, Broadbase is providing a high standard of customer support, enhanced with the additional value of having a real understanding of the issues and concerns facing emerging e-businesses in Europe.

About Broadbase

Broadbase Software is the leading provider of customer-focused analytic, marketing automation and e-service software 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 has provided critical e-commerce infrastructure to more than 500 customers, including ADP, BEA Systems, Cisco Systems, Compaq Computers Ltd., Credit Suisse, Eddie Bauer, EDS, Fidelity Investments, Hewlett Packard, Kodak, Palm Computing, Polycom, United Airlines and Verizon. 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 the combined company's products or services; inability to integrate existing products and services within budget and on schedule, and develop new integrated products and services on a timely basis; inability by Broadbase or Servicesoft to successfully cross-sell their products and services to each other's customers; 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 Broadbase's recent filings with the Securities and Exchange Commission ("SEC"), including its annual report on Form 10-K filed on March 23, 2001.

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