Compaq and Exchange Applications Forge New Partnership; Compaq to Re-Sell Exchange Applications' Customer Optimization and emarketing Software.

BOSTON and HOUSTON--(BUSINESS WIRE)--Nov. 15, 1999--

World's second-largest computer company incorporates VALEX into its

Marketing Automation for CRM offering

Exchange Applications, Inc. (Nasdaq:EXAP), which helps optimize interactive relationships between customers and companies, announced today a new reseller agreement with Compaq Computer Corporation (NYSE:CPQ).

Compaq will re-sell Exchange Applications' VALEX(TM) software to its clients as one of its major components within its Marketing Automation for CRM enterprise solutions offering. The companies have already signed one joint customer: Eirecell, Ireland's largest wireless telecommunications provider.

According to Exchange Applications' CEO Andy Frawley, this new relationship will create opportunities for both firms. "Compaq is known for its ability to put together end-to-end systems based on best-of-breed technology," Frawley said. "By integrating VALEX into its Marketing Automation for CRM offering, Compaq is providing its customers with award-winning customer optimization software that's been successfully deployed at dozens of major corporations. We're pleased to play a prominent role in Compaq's overall Marketing Automation for CRM offering."

Laura Farnham, Vice President of the Financial Services Industry Practice of Compaq's Professional Services Division stated, "Exchange Applications' ability to coordinate online and offline campaigns and perform cross-channel response management - especially within financial services accounts - were key considerations for Compaq. We believe that Exchange Applications and Compaq are a very compelling combination for these accounts."

During August and September 1999, more than 60 Compaq sales and service professionals attended intensive training sessions on Exchange Applications and VALEX.

VALEX enables companies to automate and coordinate the planning, creation, execution and analysis of highly targeted marketing campaigns across all customer channels, including the Web. By increasing the relevance of customer communications, businesses can improve response rates, profit-per-customer and marketing ROI. VALEX software is featured in Compaq's Center of Excellence for Customer Relationship Management, "proof of concept" laboratory located in Greenwich, Connecticut.

Exchange Applications, Inc.

Exchange Applications, Inc. (Nasdaq:EXAP) helps optimize interactive relationships between customers and companies. Based on the principal of permission-based marketing, its eCRM software ensures that customer communications are relevant, timely and coordinated across all customer channels. By providing a single view of customer relationships, Exchange Applications bridges online and offline customer communications, facilitating higher ROI on emarketing and ecommerce practices. More than 100 of the world's most innovative companies, including Ameritrade, Citigroup, DaimlerChrysler, Microsoft, Sprint and theglobe.com are currently using Exchange Applications' solutions to strengthen customer relationships and earn a greater share of each customer's business. For more information, visit http://www.exapps.com.

VALEX is a trademark of Exchange Applications, Inc. All other trademarks contained herein are the property of their respective owners.