ChannelWave and Mitsui & Co. Sign Exclusive Distribution Agreement to Deliver PRM Solutions to Businesses in Japan.

Business/Technology Editors

TOKYO & CAMBRIDGE, Mass.--(BUSINESS WIRE)--Sept. 12, 2002

Joint Venture Will Meet Growing Demand Among Japanese Businesses for

Technology to Enhance Partnering Success and Indirect Channel Sales

Revenues

ChannelWave Software, Inc., and Mitsui & Co., Ltd., one of the world's largest international trading companies, today announced an exclusive distribution and licensing agreement to bring ChannelWave's market-leading Partner Relationship Management (PRM) solutions to the Japanese market. Through this agreement, Mitsui and ChannelWave will provide partnering technology to enable Japanese business to optimize their indirect sales operations and improve the performance of business partnerships.

To meet the growing demand for PRM as part of its total enterprise technology offering, Mitsui and its distribution and systems integration partners will be the first to sell and support PRM solutions to customers in the high technology, telecommunications, manufacturing, recreation and automotive industries in Japan. Mitsui will also localize ChannelWave's software into Japanese and license ChannelWave 5 for one of its own divisions. ChannelWave anticipates that this relationship, and the opening of new markets for ChannelWave 5, will provide a 15-20 percent increase in revenues over the next three years.

"Through the extensive pre-marketing we conducted with Mitsui and its distributors and customers, we see strong demand for PRM solutions in Japan, where nearly 90 percent of all products and services are sold through indirect channels," said Chris Heidelberger, president and CEO of ChannelWave. "ChannelWave is excited about the opportunity to build on our success in North America and Europe through this relationship, because of Mitsui's broad distribution and customer base, long record of innovation, proven expertise in delivering enterprise software solutions and our shared vision of the growing opportunity for PRM in the Japanese market."

Mitsui & Co., Ltd., is one of Japan's largest trading companies with offices in 91 countries, $100 billion in transactions in fiscal 2001 and more than 20,000 customers worldwide. Mitsui has been a leader in providing Customer Relationship Management (CRM) solutions, as the leading distributor of PeopleSoft/Vantive solutions in Japan since 1996, with nearly 300 installations.

"Mitsui & Co. selected ChannelWave as the best PRM solution for our distributors and customers because of its financial stability, strong management team and investors, broad and deep functionality, market leadership and highly configurable Web-based solutions for strengthening business partnerships," said Toshiyuki Yamazoe, general manager of Mitsui's Enterprise Solution Service Business Department, IT Service Business Division. "ChannelWave is a proven solution, which our customers are demanding, to help businesses in multiple industries to drive more revenues through their channel partners."

ChannelWave 5 supports the entire lifecycle of channel pre-sales, sales and post-sales business activities through a suite of Web-based applications. Built on an open, Java-based platform, ChannelWave 5 provides the most comprehensive and flexible solution for supporting complex relationships among multiple vendors, partners and customers. Organizations can recruit the right partners, create effective joint business plans, deliver targeted marketing campaigns and communications, forecast business opportunities, drive and manage highly-qualified leads to the best-matched partners, monitor the ROI of marketing activities and help partners close more sales faster. Because of ChannelWave's flexible software business model, organizations can achieve faster deployment, seamless integration with existing enterprise applications, a stronger return on investment and lower cost of ownership than with competing solutions by dramatically reducing costs, increasing channel sales revenues and improving visibility across their entire business.

"Today's agreement with Mitsui is an important step in ChannelWave's international growth strategy as we expand our geographic and vertical market presence across the globe," said Peter Emerson, ChannelWave's vice president of Corporate and International Development and General Counsel. "We see a great opportunity in Japan and the entire Asia-Pacific market."

The ChannelWave-Mitsui exclusive distribution agreement was completed during a signing ceremony today at Mitsui headquarters in Tokyo. The two companies will conduct a seminar on PRM solutions for more than 200 prospective partners and customers on October 3 in Tokyo, featuring speakers from Deloitte & Touche, ChannelWave and Mitsui.

About Mitsui & Co. Ltd.

Mitsui & Co. is Japan's largest sogo shosha, or general trading and investment company. The Company has two principal roles: to facilitate its clients' international trade-related activities and, making use of its substantial information, human, financial, and other resources, to create new trade flows, new enterprises, and new industries around the world. Mitsui's fundamental activity is providing transaction services more specifically, acting as an intermediary between buyers and sellers who want to import, export, or engage in offshore or domestic trading activities. Mitsui's services add value far beyond facilitation existing trade flows. As a regular part of its operations, Mitsui works to actively identify promising new business opportunities, assist in technology transfers, and organize joint ventures, while investing its own capital and management time to promote the success of new enterprises. For more information, visit www.mitsui.co.jp/tkabz/english/index.html.

About ChannelWave

ChannelWave Software, Inc. helps enterprises gain a competitive advantage by optimizing the performance of indirect sales channels and business partnerships. ChannelWave's open, Java-based platform and comprehensive application suite enables complex and collaborative partnerships by improving the effectiveness of indirect pre-sales, sales and post-sales activities. With customers including AT&T, BEA, Cable & Wireless, Hewlett-Packard, McDATA, PTC, Qwest, Sterling Commerce and Verizon, ChannelWave's solutions are quickly deployed, easily integrated with other enterprise systems and deliver fast ROI through dramatic cost savings, increased channel sales revenues and enhanced customer satisfaction. The company has been named an UPSIDE Hot 100 company and received such awards as eCustomer World Golden Award, Canadian Information Productivity Award and Customer Interaction Solutions Editor's Choice. ChannelWave is privately held, with lead investors Mobius Venture Capital, ABS Capital Partners, Lazard Technology Partners and Ironside Ventures. The company is headquartered in Cambridge, MA and has offices in Toronto and San Jose. More information is available at www.channelwave.com or by calling [phone].

ChannelWave is a registered trademark of ChannelWave Software, Inc. All other logos, company and product names may be trademarks or registered trademarks of their respective owners.