Knowsley Metropolitan Borough Council Identifies Savings of Over a Quarter of a Million Pounds by Using Onyx CRM; Preliminary Study Indicates Greater Savings in the Longer Term.

Business Editors

BELLEVUE, Wash.--(BUSINESS WIRE)--May 26, 2004

Onyx(R) Software Corp. (Nasdaq:ONXS), a worldwide leader in successful customer relationship management (CRM), announces that Knowsley Metropolitan Borough Council has identified cost-savings of over GBP 250,000 in just two service areas resulting from the implementation of Onyx Software's flagship CRM product tailored for local government needs. The cost-savings were identified as part of a return on investment study at Knowsley conducted by the National Computer Center (NCC), and the figure is expected to increase as the implementation of CRM in other service areas is analyzed.

The NCC study examined two areas where Knowsley Council has implemented CRM -- a specific service, Revenues and Benefits, and a cross-service function, Council-wide Bookings. Processes before and after CRM implementation were identified, and costs calculated for comparison. Knowsley is one of six partner authorities managing the local eGovernment CRM National Program, an initiative established by the Office of the Deputy Prime Minister in response to demand from local authorities for advice and guidance in planning and implementing CRM. The return on investment study used a model developed as part of Knowsley's work to build a Return on Investment Guide, one of the core tools available in the Government's CRM Resource Kit for local councils.

"We are delighted that this study has confirmed our expectations of the benefits of implementing CRM at Knowsley," said Rod Matthews, Head of ICT for Knowsley Metropolitan Borough Council. "We have identified significant, quantifiable performance improvements and cost reductions in these two areas. As they comprise only one-fifth of the total number of transactions that will be running through Onyx when implementation is complete, we anticipate further savings in the future. Quality service will be delivered at lower cost and the council will be able to reinvest the savings as we become more efficient and effective at providing services for our citizens."

Using Onyx CRM has also benefited Knowsley by facilitating additional business processes to further improve service and efficiency. Benefits of the Onyx solution mentioned in the study include:

-- Capturing core data at front office through eforms

-- Improving the efficiency and quality of call and enquiry

handling (thus reducing the need for follow-ups)

-- Facilitating a joined-up and consistent customer service

-- Eliminating, improving and automating key business processes

-- Provision of high-quality management information

"For Chief Executives and Treasurers this study demonstrates the economic argument for CRM," said Ian Lever of the National Computer Centre. "Organizations of any kind need to see the value of their investments and local authorities are no different. Onyx has helped hundreds of their commercial customers derive business value from CRM and this study proves the value of a structured and well planned CRM implementation to local authorities too."

The Onyx for Local Government solution, with versions developed specifically for UK and U.S. local governments is being used by more than thirty local authorities across the globe including Knowsley Metropolitan Borough Council, Worcestershire County Council, Highland Council and Cambridgeshire County Council. The solution, which includes a desktop for contact centre representatives, a citizen self service portal and a robust reporting package, is helping local authorities share vital citizen-centric information across departments to provide higher levels of service, reduce operational costs and maintain accountability for departmental programs and services.

About Onyx Software

Onyx Software Corp. (Nasdaq:ONXS), a worldwide leader in delivering successful CRM, offers a fast, cost-effective, usable solution that shares critical information among employees, customers and partners through three role-specific, Web services-based portals. The Onyx approach delivers real-world success by aligning CRM technology with business objectives, strategies and processes. Companies rely on Onyx across multiple departments to create a superior customer experience and a profitable bottom line. Onyx serves customers worldwide in a variety of industries, including financial services, healthcare, high technology and the public sector. Customers include Amway Corporation, United Kingdom lottery operator Camelot, Delta Dental, Microsoft Corporation, Mellon Financial Corporation, The Regence Group, State Street Corporation and Suncorp. More information can be found at (888) ASK-ONYX, [e-mail] or http://www.onyx.com/.

About Knowsley Metropolitan Borough Council

Knowsley Metropolitan Borough Council (KMBC) serves a population of 154,000 and contains approximately 61,000 residential properties and 2,800 business premises in 22 electoral wards. KMBC is the only Council to have achieved three Beacon Council awards in one year, has Investor in People status and is involved in several "pathfinder" and "trailblazer" initiatives, including improving services through eGovernment. Since December 2002, 250 new electronic services have been added to the On Line portfolio, and 92.8% of visits are resolved at first point of contact in Knowsley's One Stop Shops. A multi-service Contact Centre answers all calls on average within four rings. KMBC's eGovernment agenda has seen the implementation of a brand new CRM system encompassing a range of generically provided front of house services. It focuses in the first instance on the housing benefits service, with clear plans for integration across the range of Council services in the next three years. The Benefits service has significantly improved performance on claims processing from 128 days in June 2002 to 47 days in September 2003. www.knowsley.gov.uk

Forward-Looking Statement 

This press release contains forward-looking statements, including statements about the potential benefits and cost savings associated with using Onyx's products and the expected future cost savings of Knowsley. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Factors that could affect Onyx's actual results include, but are not limited to the actual benefits and cost savings realized by entities using Onyx's products and the "Important Factors That May Affect Our Business, Our Results of Operations and Our Stock Price" described in our quarterly report on form 10-Q for the period ended March 31, 2004. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Onyx undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Onyx is a registered trademark of Onyx Software Corp. in the United States and other countries.

Other product or service names mentioned herein are the trademarks of their respective owners.