Ernst & Young Selects Exchange Applications' VALEX As Its Recommended Campaign Management Software.

BOSTON--(BUSINESS WIRE)--June 21, 1999--

E&Y to showcase VALEX software at its Advanced Development Centers

across the U.S.

Exchange Applications, Inc. (Nasdaq:EXAP), a leading provider of software and services that optimize the value of customer relationships, announced that Ernst & Young LLP has selected VALEX(tm) as its recommended campaign management solution. To encourage its clients to consider VALEX, Ernst & Young will showcase the software in its Advanced Development Centers in the U.S., alongside complementary applications such as Siebel Systems' sales-force automation software.

In use at more than 70 sites around the world, Exchange Applications' VALEX software helps companies increase profit-per-customer by automating highly targeted direct marketing campaigns that boost customer acquisition and retention rates and increase cross-selling and up-selling.

Ernst & Young is one of the world's leading accounting, tax and consulting firms, with a significans' domain expertise in customer optimization and Ernst & Young's ability to develop and implement fully integter technology.

"Many businesses are shifting their attention and resources toward growth and value crhe complexity of their customer franchise, and the difficulty of assigning value to the multitude of factors that influence customer behavior," said Chris Christensen, pa defining, evaluating and managing customer value. Exchange Applications' Customer Relationship Optimizationt enable this customer-growth driving capability."

Ernst & Young and Exchange Applications share a common methodology for optimizing customer value, called Value Exchange Optimization (VEO). VEO helps companies answer the question "How much value did we receive in exchange for the investment made in each customer?" Ernst & Young has successfully applied this methodology at many client sites to measure the ROI of customer relationship management initiatives.

"Ernst & Young has developed a proven customer op's selection of VALEX as the recommended campaign management systems component of this solution is further validation of our position as the leading solution." Exchange Applications believes that it has more paying customers than any other campaign management or marketing automation vendor. Its products are in use in 21 countries around the world, at Global 2000 firms such as Federal Express, Citigroup, Sprint, NatWest Bank and Staples. The company has won several awards for VALEX, including The Data Warehousing Inste leading professional services firms, with 30,000 people at 87 locations throughout the United States. The a variety of work/life balance programs for itsInc.

Exchange Applications, Inc. (Nasdaq execute, analyze and refine marketing campaignslications is based in Boston, with offices in Denver, London and Sydney. Visit Exchange Applications on the lications, Inc. Value Exchange Optimization is a licensed trademark of Ernst & Young LLP. All other trademarks are the property of their respective owners.