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117% Revenue Growth from 4Q99; Enterprise-Level Wins with MetLife and
British Sky Broadcasting; Signing of Definitive Merger Agreement with
PrimeResponse


CUPERTINO, Calif., February 6, 2001-Chordiant Software, Inc.
(Nasdaq:CHRD), leading developer of unified customer relationship
management (CRM) solutions for companies with extreme customer demands,
today announced its financial results for the fourth quarter and full year
ended December 31, 2000.

Total net revenues were $11.6 million, up 117% from the $5.3 million
reported for the fourth quarter of 1999 and a 19% increase from $9.7
million for the third quarter of 2000. Fourth-quarter license revenues
were $6.2 million, up from $2.7 million a year earlier. Service revenues
were $5.4 million, up from $2.7 million a year ago. Fourth-quarter gross
margin grew sequentially from 45 percent to 53 percent.

Before the effect of non-cash charges related to the amortization of
deferred stock-based compensation, the amortization of acquired intangible
assets and unreconciled currency translation adjustments, fourth-quarter
net loss was $5.0 million, or a loss of $0.13 per share on a pro forma
basis, compared with a net loss of $5.8 million, or a loss of $0.19 per
share pro forma, for the same quarter a year ago. After the effect of
these charges-portions of which relate to the acquisition of White Spider
Software, Inc. in July 2000 and the amortization of deferred stock-based
compensation-fourth-quarter net loss was $6.5 million, or a loss of $0.17
per share, compared with a net loss of $7.7 million, or a loss of $1.38
per share, for the same quarter of 1999.

Results for the year ended December 31, 2000 included a charge of $650,000
related to estimated unreconciled currency translation adjustments arising
from inter-company transactions. Chordiant is reconciling the currency
translation adjustments and expects to resolve these adjustments before
the filing of its Annual Report on Form 10-K.

On the balance sheet at December 31, 2000, total deferred revenue was
$30.0 million, up 195% from $10.2 million at December 31, 1999.
Short-term deferred revenue was $20.9 million, and long-term deferred
revenue was $9.1 million. Cash, cash equivalents and short-term
investments totaled $67.7 million, up $1.1 million from September 30,
2000.

"In the fourth quarter, we continued to grow revenues and reduce operating
net loss as planned," said Sam Spadafora, chairman and chief executive
officer of Chordiant. "We also reached $30 million in deferred revenue,
which reflects the strength of our pipeline going into the new year.
During the quarter, we received enterprise-level orders from MetLife and
British Sky Broadcasting (BskyB), and commenced seven new engagements with
new and existing customers. For all four quarters of the year ended
December 31, 2000, Chordiant exceeded its critical financial goals,
including revenues, expense management, net loss per share, and cash
management. The company has consistently demonstrated aggressive organic
growth. Recently, we reached agreement to acquire PrimeResponse, which we
believe will fortify Chordiant as a leader in customer acquisition,
retention and relationship management for large B2C companies worldwide."

For the full year ended December 31, 2000, Chordiant's total net revenues
were $33.7 million, up 92 percent from $17.6 million for the prior year.
Net loss was $23.6 million, or a loss of $0.64 per share pro forma,
excluding non-cash charges of $6.3 million for stock-based compensation,
one-time charges of $5.0 million for the write-off of purchased in-process
research and development and the amortization of acquired intangible
assets, and unreconciled currency translation adjustments of $650,000.
This compared with a net loss of $20.5 million, or a loss of $0.83 per
share pro forma, excluding non-cash charges of $2.7 million for
stock-based compensation, for the previous year. Including the charges
for stock-based compensation, write-offs and amortization of acquired
intangible assets, net loss for 2000 was $34.9 million, or a loss of $0.97
per share pro forma.

Planned Acquisition of PrimeResponse

On January 8, 2001, Chordiant and PrimeResponse, Inc.
(Nasdaq/Easdaq:PRME), a leader in business-to-consumer relationship
marketing, announced the signing of a definitive merger agreement for
Chordiant to acquire PrimeResponse in a stock transaction valued at
approximately $38 million. The transaction is expected to close early in
the second quarter of 2001, subject to customary closing conditions,
including stockholder and regulatory approvals. As a result of the
acquisition, Chordiant expects to enhance its position as a leading
provider of unified CRM infrastructure software, service and relationship
marketing applications across multiple markets-including financial
services, communications, travel, and consumer-with a customer and partner
base of more than 100 Global 1000 companies worldwide.

Quarterly Business Highlights

During the fourth quarter of 2000, Chordiant:

· Received multi-million dollar, enterprise-level orders from MetLife and
BskyB, which are expected to result in multiple new CRM engagements in
2001 and beyond;

· Commenced seven new engagements with new and existing customers,
including Royal Bank of Scotland, MetLife, Barclays, and Lloyds TSB;

· Formed a global strategic partnership with BroadVision for the
development of an integrated CRM solution for multi-channel sales and
customer service;

· Executed first customer shipments of product incorporating the Internet
knowledge management and next-generation, XML-based technology of White
Spider Software, Inc., which Chordiant acquired in July 2000;

· Promoted Stephen Kelly, senior vice president of Worldwide Field
Operations, to the position of president and chief operating officer,
reporting to Sam Spadafora, chief executive officer, effective January 5,
2001.

In addition, Thomas Cook Global & Financial Services, a long-standing
Chordiant customer, won the European Call Centre of the Year Award for the
second consecutive year at Call Centre Expo 2000 in London. This annual
award recognizes best practices in the use of CRM technology and related
areas of customer service across all industry segments.

About Chordiant Software, Inc.

Chordiant (NASDAQ: CHRD) delivers a unified CRM solution for companies
with extreme customer demands. Chordiant's solution is designed to solve
the needs of complex businesses serving millions of individual customers
with the objectives of retaining, growing and building lifetime customer
value. Whether communicating by email, Web, telephone, or wireless
access, Chordiant Unified CRM Solution provides a real-time, single view
of each customer and a consistent, personalized message for every
interaction. It includes a comprehensive business process engine, which
allows companies to implement best business practices across multiple
touchpoints. Chordiant empowers high-value contacts designed to retain
customers, grow revenue and drive profits during every contact. The
Chordiant system has been selected by several of the world's leading
consumer companies, including Barclays, BskyB, Direct Line, First USA
Bank, OnStar, Halifax Card Services, Lloyds TSB, and MetLife.
Headquartered in Cupertino, California, Chordiant maintains regional
offices in Chicago, Dallas, New York, London, Amsterdam, and Munich.

This news release includes "forward-looking statements" that are subject
to risks, uncertainties and other factors that could cause actual results
or outcomes to differ materially from those contemplated by the
forward-looking statements. For this purpose, any statements contained in
this news release that are not statements of historical fact may be deemed
to be forward-looking statements. Words such as "believes,"
"anticipates," "plans," "expects," "will," "would," "assume," and similar
expressions are intended to identify forward-looking statements. There
are a number of important factors that could cause the results of
Chordiant to differ materially from those indicated by these
forward-looking statements, including, among others, risks detailed from
time to time in the company's respective Securities and Exchange
Commission reports, including Chordiant's Quarterly Report on Form 10-Q
for the quarter ended September 30, 2000, and Chordiant's final prospectus
for its initial public offering filed on February 14, 2000. Factors that
could cause or contribute to such differences include, but are not limited
to, risks related to customer and market acceptance of our products,
deployment delays or errors associated with these products, risks related
to the acquisition and integration of the technology and business
operations of Prime Response, hardware platform incompatibilities,
reliance on a limited number of customers for a majority of revenue, need
to maintain and enhance certain business relationships with application
integrators and other parties, ability to manage growth, activities by
Chordiant and others regarding protection of proprietary information,
release of competitive products and other actions by competitors, and
economic downturns in either domestic or international markets. Chordiant
undertakes no obligation to update forward-looking statements contained in
this news release.

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