Broadbase Software First Quarter Results.

Business/Technology Editors

MENLO PARK, Calif.--(BUSINESS WIRE)--April 12, 2001

Broadbase Software, Inc., (NASDAQ: BBSW), the leading provider of Intelligent Customer Interaction(TM)software, today announced its results of operations for the first quarter of 2001 ended March 31, 2001.

Revenues for the first quarter were $13.0 million, up 107% over the quarter ended March 31, 2000. Excluding the effect of amortization of stock-based compensation, costs and expenses associated with acquisitions, and the impairment of intangible assets and goodwill, net loss for the quarter ended March 31, 2001 was $18.3 million or a loss of $0.22 per share, compared to losses of $0.14 per share for the quarter ended March 31, 2000. Net loss for the quarter on a GAAP basis, including a charge for the impairment of intangible assets and goodwill from prior acquisitions of $958.2 million was $1,048.4 million or a loss of $12.90 per share, compared to a loss of $0.92 per share for the quarter ended March 31, 2000.

"During these uncertain economic times, we significantly strengthened our product offering and overall market position with our pending merger with Kana," said Chuck Bay, president and CEO of Broadbase Software. "As always, our focus is on developing world-class products and delivering exceptional value to our customers. The combination of Broadbase and Kana will offer customers an unbeatable solution set."

Broadbase will host a conference call Thursday, April 12, 2001 to discuss the first quarter results. The call will begin at 1:30 p.m. (PDT) / 4:30 p.m. (EDT), and can be accessed at www.broadbase.com or by calling domestically [phone] or internationally [phone] ask for the "Broadbase Conference Call". If you are unable to participate in the live conference call, an "instant replay" will be available, following the call's conclusion, through April 19, 2001. To access the replay, by calling domestically dial [phone] or internationally [phone] and then enter pass code 18227001.

About Broadbase

Broadbase Software is the leading provider of customer-focused eService, eAnalytic and eMarketing applications that analyze customer data from multiple touch points, and use that information to execute marketing campaigns, improve on-line merchandizing and content, increase site stickiness and personalize all customer interactions. Broadbase provides mission 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.

Broadbase and Intelligent Customer Interactions are trademarks of Broadbase Software, Inc. All other product and company names may be trademarks of their respective companies.

"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, slowing economic conditions; lack of market acceptance of the company's products or services; inability to integrate and enhance existing products and services within budget and on schedule, and develop 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 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 Software, Inc.
                 Condensed Consolidated Balance Sheets
                            (in thousands)


                                               March 31,  December 31,
                                                 2001         2000
Assets
Current assets:
 Cash and cash equivalents                 $    70,731    $    51,186
 Short-term investments                         59,939        101,034
 Accounts receivable-net                        20,789         27,536
 Prepaid expenses and
  other current assets                           5,892          8,357
  Total current assets                         157,351        188,113
Restricted cash                                  2,473          2,473
Property and equipment, net                     18,570         17,730
Long-term investments                             --           15,540
Goodwill and intangible assets, net             32,771      1,044,287
Other assets                                     6,359          7,792
  Total assets                             $   217,524    $ 1,275,935

Liabilities and Stockholders' Equity

Current liabilities:
 Accounts payable                          $     7,661    $    16,210
 Accrued compensation                           10,768          7,961
 Accrued expenses                               12,336         28,890
 Current portion of bank line
  of credit, notes payable and
  capital lease obligations                        326            346
 Deferred revenue                               16,671         16,320
  Total current liabilities                     47,762         69,727

Bank line of credit, notes
 payable and capital
 lease obligations                                 610            703
 Total liabilities                              48,372         70,430

Stockholders' equity:
Common stock                                        82             81
Additional paid-in capital                   1,484,835      1,484,130
Deferred stock compensation                    (31,686)       (42,899)
Notes receivable from stockholders                (963)          (436)
Accumulated other comprehensive loss               390           (268)
Accumulated deficit                         (1,283,506)      (235,103)
  Total stockholders' equity                   169,152      1,205,505
  Total liabilities and
   stockholders' equity                    $   217,524    $ 1,275,935


                     Broadbase Software, Inc.
         Condensed Consolidated Statements of Operations
             (in thousands, except per share amounts)


                                                Three Months Ended
                                                     March 31,
                                                2001          2000

Net Revenue:
     License                                  $ 7,176       $ 4,520
     Professional services                      3,210         1,119
     Maintenance                                2,646           662
        Total net revenue                      13,032         6,301
Cost of revenue:
    License and services                        7,712         2,426
    Amortization of acquired core
     and developed technology                   1,632           264
Total cost of revenue                           9,344         2,690
     Gross margin                               3,688         3,611

Operating expenses:
     Sales and marketing                       13,979         7,578
     Research and development                   7,512         2,764
     General and administrative                 4,299         1,126
     Amortization of deferred stock
      compensation                              7,917         3,510
     Amortization of intangible assets
      and goodwill                             56,160        11,896
     Acquired in-process research
      and development                              -         10,057
     Merger expenses                            6,208         6,184
     Impairment of intangible assets
      and goodwill                            958,219            -
Total operating expenses                    1,054,294        43,115

Loss from operations                       (1,050,606)      (39,504)
Interest income                                 2,217         2,179
Interest expense                                  (14)         (133)
Net loss                                 $ (1,048,403)    $ (37,458)

Basic and diluted net loss per share         $ (12.90)      $ (0.92)

Weighted-average shares used in
 computing basic and diluted net loss
 per share                                     81,267        40,532