Broadbase Software and KMPG Consulting Partner to Help Global 2000 Companies Embrace Web Marketing.

Business/Technology Editors

MENLO PARK, Calif.--(BUSINESS WIRE)--Jan. 22, 2001

Intelligent Customer Interaction Applications Increase

Revenue and Reduce Business Expenses

Broadbase Software (NYSE: BBSW), the leading provider of intelligent customer interaction software, and KPMG Consulting today formalized their relationship to offer clients end-to-end eCRM solutions. As a result of this partnership, KPMG Consulting is using Broadbase applications as a core component of the `intelligent customer interaction' eCRM strategies being implemented in Global 2000 organizations to drive revenue while enhancing customer service, retention levels and loyalty.

"KPMG Consulting helps organizations interact with customers intelligently and speak to them with a single voice," said Martin Webley, a senior partner in Customer Management at KPMG Consulting. "We do this by designing and implementing end-to-end business solutions, ranging from customer strategy to systems integration. In our view, Broadbase is one of the most effective analytic and marketing automation solutions available in today's eCRM marketplace, and we are delighted to be able to offer this leading edge technology to our clients."

Projects currently underway include Broadbase implementations at Cisco and Hewlett-Packard, where KPMG consultants are being engaged worldwide. These organizations will have access to Broadbase's fully integrated eCRM application that features integration, analysis and interaction across marketing, sales and service domains. As a result, Cisco and Hewlett-Packard marketers will be able to manage multiple communications media and response channels as part of a single marketing campaign. They will be able to segment their customers, interact with them using the Web and track responses and outcomes to a campaign.

"We look at our key integrator relationships as critical to the widespread adoption of the Broadbase eCRM suite," said Chuck Bay, CEO of Broadbase. "Our analytics, service, and marketing components each offer tremendous value to our customers and the integration skills of KPMG will ensure smooth delivery and operations of the eCRM suite."

The KPMG/Broadbase partnership has already produced revenue for both organizations, in the form of two new engagements for Trade New Zealand and Magex. Ongoing engagements with Cisco and Hewlett-Packard are also expected to result in additional implementations, as these clients increasingly recognize the value of integrated analysis, marketing and customer service components.

"We've already seen great return from the Broadbase eCRM suite and the integration that KPMG has done," said Daryl Nielson at Hewlett-Packard. "With this new partnership in place, we look forward to further engagements with KPMG integrating the Broadbase software at other Hewlett-Packard locations worldwide."

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 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, Eddie Bauer, Fidelity Investments, Hewlett Packard, InsWeb, Kodak, Onvia.com, 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.

About KPMG Consulting

KPMG Consulting is one of the world's leading e-business consultancies. In the UK, KPMG Consulting employs more than 1,800 people and had revenues to September 1999 of (pound)282 million. The firm combines leading-edge management thinking with the latest technologies to `e-enable' its clients' businesses. KPMG Consulting's goal is to help its clients shape their own futures and to achieve sustainable competitive advantage in the new economy. http://www.kpmgconsulting.co.uk

"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 quarterly report on Form 10-Q filed on November 13, 2000.

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