Diffusion, Inc. Signs Wit Capital, Major e-Brokerage Firm, in Major Customer Win; WIT Capital and Diffusion Provide Enhanced Services Through a CRM Solution.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Nov. 16, 1998--Diffusion, Inc. and Wit Capital today announced that Wit Capital, a leading online brokerage firm, has selected Diffusion CRM System 3.0, the industry's premiere customer relationship management (CRM) software system for automating personalized, closed-loop customer interactions. Wit Capital plans to implement Diffusion CRM System 3.0 immediately in order to offer its clients enhanced services for timely and cost efficient purchasing and selling of financial investment offerings.

"We have built our business on the premise that servicing the `individual' in the volatile financial services market requires a new set of client criteria - specifically, the need to service each client with highly personalized information and actionable communications, when, where and how they need it," said Andy Klein, founder and chief strategist of Wit Capital. "The first company to deliver all that to the client wins. We believe Diffusion's CRM solution will help us reach that goal."

Wit Capital aims to "level" the investment playing field by allowing individuals to have access to IPOs, private placements and other financial offerings by leveraging the distribution power of the Internet. Making this new electronic investment paradigm successful requires highly personalized and timely client interactions.

Diffusion represents a new type of CRM solution that addresses the need for more frequent, personal, proactive client contacts. Unlike traditional CRM systems that automate internal processes to make them more efficient, the Diffusion CRM System automates the relationship interactions between an enterprise and its clients to make the client more effective.

"We are pleased to be working with Wit Capital to define a new level of personalized services to their fast-growing client base," said Jim Gagnard, CEO and president of Diffusion. "With the Diffusion CRM System's electronic relationship manager Wit Capital, for the first time, will be able to ensure that each `individual' financial investor receives the timely, relevant interaction they need, when they need it. This service will uniquely set Wit apart from other e-brokerage firms and give them a strong competitive edge."

Wit Capital set out to select the CRM solution that would provide the maximum benefit for their organization and their current client base of over 100,000 members. Wit selected Diffusion System CRM 3.0 over other CRM systems because of its ability to: -0-

--   manage a large portfolio of clients each with unique service
     requirements
--   personally and proactively reach and interact with each Wit
     Capital client
--   leverage the company's existing IT and Web infrastructure
--   provide a consistent "client experience" by coordinating client
     interaction information across all touch-points

About CRM

Customer Relationship Management (CRM), the electronic automation of client interactions, is a growing category of enterprise software that shows promise in building client loyalty, while decreasing client defection. This emerging software market is expected to reach $6 billion by the year 2000.

Traditional customer management solutions have automated client-related, internal processes but have not automated the enterprise-to-client interactions to make the client more effective. True CRM solutions provide a comprehensive approach to client relationships that incorporate the balance and automation of personal, client interactions -- whether it's inbound or outbound; whether it's though the internet, telephone, fax, call center, pager, etc -- whatever each individual client prefers.

Diffusion CRM System 3.0

The Diffusion CRM System 3.0 allows organizations in competitive, client-focused industries to improve client retention by developing closer, more personalized relationships with the entire client base. With the Diffusion solution, an enterprise can provide each of their clients with individualized, timely, relevant interactions.

Diffusion allows the client to be more effective by defining their own balance of inbound vs. outbound and automated vs. in-person interactions, as well as their preferred communications method (telephone, pager, e-mail, fax, and more). Diffusion enables each client to take immediate action if the interaction requires it. A decision can be made directly through an interactive media device such as a two-way pager or it can be made indirectly by bringing the client back to a Web site or call center. Simultaneous with contacting clients, Diffusion can notify internal personnel and update enterprise databases or client-centric applications to ensure all client touch points are coordinated.

About Wit Capital

Wit Capital (www.witcapital.com) has participated in 31 major public offerings in its first twelve months of operations. As it begins its second year of business, the firm has now graduated to acting as a co-manager designated as e-Manager(tm). The sixty-person firm already represents access to over 2 million online investors directly and through agreements in place with other online brokerage firms. Wit Capital also has a strong private equity capacity and in the first quarter of 1999 is launching the Web's first digital stock market - through which investors will be able to avoid spreads by buying and selling NASDAQ and listed shares directly with other investors. The firm was founded by Andrew Klein in April of 1996, after he completed the first ever online public stock offering for his microbrewery Spring Street Brewing Company. In June of 1998, former vice chairman of Salomon Smith Barney Robert Lessin joined the firm as chairman and CEO and former vice chairman of Charles Schwab Ronald Readmond was appointed president and COO. Wit Capital is a registered broker-dealer and member of NASD and SIPC.

About Diffusion

Diffusion, Inc. was founded in 1995 to develop and market Customer Relationship Management (CRM) solutions for automating personalized, closed-loop interactions between an enterprise and its clients. Current clients include organizations such as NationsBank, GTE, WorldCom, SmithKline-Beecham, BASF, Ascend Communications, Diamond Multimedia, Madge Networks, Church and Dwight, Wit Capital and Princeton University. Diffusion manufactures and sells the Diffusion CRM System, a software platform that monitors and takes event and update information from such enterprise sources as databases, Web and application servers, and then delivers it via the user's choice of media: e-mail, fax, pager, phone, Web, printer or postal service. Each delivery can be an interactive delivery, allowing the recipient to either take action or be brought back to the originating organization's customer inbound-touch points such as call centers or Web sites. Diffusion is located at 321 Castro Street, Mountain View, CA 94041. For more information, visit the Diffusion Web site at http://www.diffusion.com.