Silknet Software Opens eBusiness Opportunity for Sweden, Italy and The Netherlands; Strategic Alliances With Buybridge, Italdata and Erigen Strengthen Silknet's Global Reach.

Business/Technology Editors

MANCHESTER, N.H.--(BUSINESS WIRE)--March 20, 2000

Silknet Software, Inc. (NASDAQ:SILK) today announced partnerships with three European resellers: Buybridge, a Sweden-based provider of innovative solution and services for eMarket relations; Italdata S.p.A., one of the most established systems integrators in Italy; and Netherlands-based Erigen, a full service e-business solutions provider. Through these partnerships, Buybridge, Italdata and Erigen will offer Silknet eBusiness Experience(TM), a suite of customer-centric eBusiness tools, to clients in Sweden, Italy, The Netherlands and beyond. These partnerships were developed in Silknet's United Kingdom offices, and extend Silknet's international presence.

The three alliances truly disperse Silknet's e-business software throughout the European continent. Leveraging its partnership with Buybridge, Silknet has an established market in Sweden, and plans to quickly expand into the Finnish, Norwegian and Danish markets. Italdata S.p.A. provides Silknet with expansion into Italy, while Erigen provides Silknet products for companies throughout The Netherlands.

"The European CRM market is increasing at an enormous rate," said Terry Wilcox, managing director of Silknet Europe. "With these partnerships, Silknet will be able to provide e-business solutions to companies that recognize the importance of offering top-notch customer service through online relationships. These alliances help European companies improve their interactions with customers while increasing their own efficiency and productivity."

"The Internet truly has shown how small the world of business can be," said Dave Fowler, vice president of marketing for Silknet Software. "With the increase of European based e-businesses, has come a marked increase in the demand for suitable tools and experience to deploy, maintain and enhance these online systems. Silknet's goal is to couple its industry-leading technology with the best system integrators in each geographical area to provide solutions that help build strong customer relationships."

The three alliances enable Buybridge, Italdata and Erigen to sell and service the e-business components included in Silknet eBusiness Experience. Silknet eBusiness System(TM), an e-business framework, will provide the resellers' clients with a highly scalable, Web-based foundation for managing interactions with online customers. Silknet's Web-based customer service application, Silknet eService(TM), will enable companies to provide self-service functions for its online visitors, implement Web-based order tracking and build extensive databases of customers. Silknet eCommerce(TM) will help companies to create and manage online storefronts, and enable customers to browse, purchase and obtain service from a single site, giving them a more complete and positive e-commerce experience. Silknet eSales(TM), a product that uses Silknet's unique Trusted Advisor(TM) technology, helps companies develop virtual sales assistants that lead customers through online purchases, replicating the trust and personalization that customers feel in "real world" transactions.

About Buybridge

Buybridge AB, headquartered in Stockholm, Sweden, is a provider of innovative solutions and services for companies with eCustomers. The goal is to be the leading provider of complete solutions for e-market relations in the Nordic area. Buybridge offers Silknet eService solutions with professional services to enable companies to better serve their eCustomers. In addition to the value added sales activities, Buybridge is developing a service to offer companies a hosted solution with all the functionality, exactly as if they were being run in-house, but without all the infrastructure costs, time of set-up, installation and maintenance. Buybridge was founded in September 1999 by a number of experienced people with in-depth knowledge of the Internet industry in the Nordic Area.

About Italdata S.p.A.

Italdata S.p.A. is a systems integrator and a development and research center for software solutions and services in the Internet and E-Commerce, Multimedia and Intranet, Business Automation, Geographical Information Systems and Training sectors. The company was set up in Avellino in 1974 to strengthen existing collaboration between two of the most important European industrial groups, Siemens and Telecom Italia. It has offices in Avellino, Rome and Milan and a staff of approximately 400 employees. The company shareholders are Siemens Informatica S.p.A, Telecom Italia S.p.A and Siemens AG.

About Erigen

Erigen is a full service solution provider in the eBusiness arena. Based in The Netherlands, Erigen is committed to helping their customers go beyond the traditional areas of doing business by providing them with best-of-class customer-centric solutions. These web-based solutions will enable organizations to: Implement and maintain their multi-channel strategy, address their business issues encountered in the new economy and provide them with an increased business agility and responsiveness to change for their customers, partners and employees. Additional information can be obtained on the World Wide Web at http://www.erigen.com.

About Silknet eBusiness Experience

The Silknet eBusiness Experience(TM) product line is a suite of e-business solutions, all built upon Silknet eBusiness System(TM), which is a Web-based platform for building, deploying and configuring customer-centric e-business applications. Silknet eService(TM) is a customer service application that enables a company to provide customer self-service and collaboration using the Web, e-mail, the telephone and other messaging media. Silknet eCommerce(TM), a Web-based solution for building and managing an electronic storefront, is the first solution to integrate e-commerce and e-service. Silknet eSales(TM) uses Silknet's unique Trusted Advisor(TM) technology in an e-sales application that assists consumers in their selection of on-line products and services using a virtual sales assistant.

About Silknet Software

Silknet Software (NASDAQ: SILK) provides the industry's leading customer-centric e-business applications and systems for Global 2000 and dot.com companies such as Office Depot, Microsoft, Priceline.com, E*Trade, Sprint, Utility.com, Cozone.com and Bell Canada. Built from the ground up with Web technologies and standards, Silknet's software allows companies to build strong customer relationships through personalized marketing, sales, electronic commerce and customer support services. Silknet's approach integrates all customer interactions and data whether across the Web, by phone, through e-mail or in person, providing the company's agents, partners and the customers with a single view of their relationship. Silknet is headquartered in Manchester, N.H., with offices across North America and in Europe. On February 7, 2000, Silknet announced an agreement to merge with Kana Communications (NASDAQ: KANA), a leading provider of comprehensive online customer communications solutions. Additional information can be obtained on the World Wide Web at http://www.silknet.com or by calling Silknet at 603/625-0070.

Silknet eBusiness Experience, Silknet eCommerce, Silknet eSales, Silknet Trusted Advisor, Silknet eService and Silknet eBusiness System are trademarks of Silknet Software. All other trademarks are the property of their respective holders.

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties.

The factors that could cause actual future results to differ materially from current expectations include the following: fluctuations in customer demand; the Company's ability to manage its growth; the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the Company's markets; the risks associated with competition; the risks associated with international sales as the Company expands its markets; and the ability of the Company to compete successfully in the future, as well as other risks identified in the Company's Securities and Exchange Commission filings, including but not limited to those appearing under the caption "Risk Factors" in the Company's Prospectus dated May 5, 1999.