Chordiant Software Launches New Insurance Market Initiative.

Business Editors/High-Tech Writers

CUPERTINO, Calif.--(BUSINESS WIRE)--Dec. 18, 2001

Chordiant Software, Inc. (Nasdaq:CHRD) a leading enterprise software company for real time customer interaction solutions today further solidified its growing leadership in the demand for enterprise customer applications in the insurance market by launching a new Insurance Industry Initiative.

This new Chordiant Insurance Industry Initiative will bring to market Chordiant's enterprise offerings together with insurance applications and solutions, create insurance industry alliances with new integration partners and developers, and form a focused North America team selling directly to the insurance industry.

Chordiant's Insurance Industry Initiative software solutions will deliver specific components and pre-configured processes for the wide range of insurance offerings servicing individual consumers. The Chordiant Insurance Industry Initiative software will be based on the Chordiant JX Architecture(TM) (J2EE and XML) and include Chordiant's applications designed for branch, partner, call center, and back office roles along with self-service Web-based applications.

Using the JX Architecture(TM), the Chordiant Insurance Industry Initiative software will provide an enterprise-wide, consistent view of the customer relationship (Customer Profile, Contact History and Transactions in progress), real-time business process automation, and integration applications to automate customer-centric services, sales and retention processes.

Robert Mullen, SVP and General Manager, will head the Chordiant Insurance Industry Initiative. Mullen has held a variety of senior positions with Chordiant in North America and Europe over the past three years. He has extensive experience with enterprise-class companies in the Financial Services and Insurance industries. Mullen also has in-depth knowledge of how these Global 1000 companies can obtain solid ROI and customer retention provided by a solution such as Chordiant's JX Architecture(TM).

Chordiant's success to date in Insurance and Financial Services is significant. Chordiant has established its marketing, and selling and servicing enterprise software offerings with leading companies such as: Allianz, Direct Line Insurance, Signal Induna, MetLife, Standard Life, InsureZone, Advance Bank, Alliance and Leicester, Banco Comercial Portugues, Banca Popolare de Novara, BankWest, Barclaycard, CTAL, Chase Manhattan Bank, CIBC, Credit Suisse, Deutsche Bank, DLJDirect, First USA, First Boston, Lloyd's TSB, Chase, Open Bank, Principal Financial, Quick & Reilly, Republic National Bank, Halifax, The Bank of Ireland, and The Royal Bank of Scotland.

"Chordiant is uniquely positioned to take advantage of the Insurance and Financial Services industry's desire for proven enterprise software that delivers a complete set of customer interaction applications, insurance industry-specific components and processes," said Stephen Kelly, Chordiant's President and Chief Operating Officer. "The Chordiant JX Architecture(TM) is the only open architecture for customer interaction based on J2EE and provides us with a very competitive advantage in the enterprise market. Customer demand has dictated that we accelerate our Insurance Industry Initiative offering, combined with delivery partnerships, that we expect will dramatically lower the cost of operation for Insurance organizations."

About Chordiant Software, Inc.

Chordiant Software, Inc. (www.chordiant.com) provides software systems designed to optimize customer interactions for Global 1000 enterprises. Chordiant's software empowers enterprises to develop high-value relationships that help retain customers, grow revenue and drive profits by providing real-time customer information from a diverse set of legacy systems, integrating all customer communications channels and automating best customer practices throughout the enterprise. Chordiant's software meets the needs of enterprises that service millions of individual customers, offer multiple product lines and develop complex customer relationships over a lifetime of interactions.

Headquartered in Cupertino, California, Chordiant maintains regional offices in Boston, Chicago, Dallas, Manchester, New York City, Amsterdam, Frankfurt, Johannesburg, London, Melbourne, Munich, Paris and Sydney.

Safe Harbor 

This news release includes "forward-looking statements" that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Forward-looking statements in this release are generally identified by words such as "believes," "anticipates," "plans," "expects," "will," "would," and similar expressions which are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Chordiant to differ materially from those indicated by these forward-looking statements, including, among others, potential difficulties in the assimilation of operations, strategies, technologies, personnel and products of acquired companies and technologies, the impact of perceived or actual weakening of economic conditions on customers' and prospective customers' spending on Chordiant software and services; quarterly fluctuations in Chordiant's revenues or other operating results; failure by Chordiant to meet financial expectations of analysts and investors, including failure resulting from significant reductions in demand from earlier anticipated levels; risks related to market acceptance of Chordiant's products; customization and deployment delays or errors associated with Chordiant products; impact of long sales and implementation cycles for certain Chordiant products; reliance by Chordiant on a limited number of customers for a majority of its revenues; Chordiant's need to retain and enhance business relationships with systems integrators and other parties; Chordiant's use in its products of third-party software; activities by Chordiant and others regarding protection of intellectual property; and competitors' release of competitive products and other actions. Further information on potential factors that could affect the financial results of Chordiant are included in risks detailed from time to time in Chordiant's Securities and Exchange Commission filings, including without limitation Chordiant's report on Form 10-Q for the quarterly period ended September 30, 2001, and the Annual Report on Form 10-K filed on March 27, 2001. These filings are available on a Website maintained by the Securities and Exchange Commission at http://www.sec.gov. Chordiant does not undertake an obligation to update forward-looking or other statements in this release.

Note to Editors: Chordiant and the Chordiant logo are registered trademarks and Chordiant Unified CRM for Extreme Demands is a trademark of Chordiant Software, Inc. JX Architecture is a trademark of Chordiant Software, Inc. All other trademarks and registered trademarks are the properties of their respective owners. # # #