Diffusion Announces New Vice President of Sales to Address Growing Market for Client Communications.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--June 16, 1998--Joe Farrell has been named vice president of sales at Diffusion, Inc., a developer of client communication solutions for corporate enterprises.

Farrell is responsible for managing Diffusion's direct sales, professional service, telemarketing, telesales and distribution partnership activities. He reports directly to James Gagnard, Diffusion president and CEO.

Farrell has more than 20 years of technology sales and management experience with enterprise business information products. Prior to joining Diffusion, he was national sales manager for the world-wide telecommunications industry at Oracle, increasing revenues in the wireless sector by over 200 percent on an annual basis. Before joining Oracle, Farrell was a district sales manager at Tandem Corporation, responsible for international banking and all other financial accounts.

"Joe's impressive experience at Oracle and Tandem is an ideal background for leading the expansion ofour sales organization to address the rapidly growing interest in Diffusion's flagship product, the Diffusion Server(TM), which has already been purchased by major corporations such as SmithKline Beecham, NationsBank, GTE and Ascend Communications." said Gagnard. "He brings a strong track record in selling enterprise-level products into Diffusion's most important target markets, such as financial services, healthcare, utilities and telecommunications. This background will help him effectively manage direct sales and our major channel partners, including Netscape, Siemans and Clarify."

Farrell is a resident of Half Moon Bay, Calif. Service-oriented organizations such as commercial banks and investment firms are introducing client Web sites to provide their clients with self-service access to information and activities. A comprehensive client communications system, the Diffusion Server enables businesses to start with client Web sites and add proactive communications to contact clients automatically wherever they are, notify them of key events and updates, and present them with decisions to be made. The Diffusion server reaches clients via their designated communication media, including e-mail, pager, cellular phone, Web and fax.

Diffusion was named to this year's list of UPSIDE Magazine's "Hot 100," a list of "the 'best of the best' companies with the most promise," according to input from investors, financial analysts and other industry experts. UPSIDE cited Diffusion Server as the "first comprehensive business information delivery system."

Diffusion, Inc., was founded in 1995 to develop and market client communication solutions that address the complex business issue of effectively communicating with people across the extended enterprise. The Diffusion Server distributes business information from enterprise sources including the desktop, Web and applications servers to targeted communities of interest -- in the media and format they need. Delivery channels supported include Webcasting, Web posting, e-mail, fax, pager, printer, cellular phone and postal service. Diffusion company headquarters are located at 321 Castro Street, Mountain View, CA 94041. For more information, visit the Diffusion Web site at http://www.diffusion.com.

NOTE TO EDITORS: Diffusion is a trademark of Diffusion.

    CONTACT: Diffusion, Inc.
              Monica Wik, 650/237-8525
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              Ulevich & Orrange, Inc.
              Matthew Quint, Janis Ulevich, 650/329-1590
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