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Blue Martini Channels Enables Companies to Centrally Manage and Deploy
Digital Assets Across Multiple Touch Points


Blue Martini Software today announced the delivery of Blue Martini Channels, a complete channel management application that helps companies to manage profitable relationships with partners, and drives sales through partner portals and online marketplaces. The application is designed for companies that sell through channels of distributors, brokers, dealers, resellers, agents and retailers.

The new application will enable companies to collect, organise, manage and deploy disparate product information, augmented with other digital assets such as images, graphics, sound files and video clips, easily to multiple touch points such as a website, wireless device or online marketplace. A feature of Blue Martini Channels is the Universal Catalogue, which helps companies publish web-ready catalogues to channel partners. Each web-ready catalogue can be customised based on factors such as industry, geography, service focus or contract terms.

"Companies need to leverage their investments in their digital assets, drive revenue and maintain hard-won relationships through diverse channels," said Monte Zweben, president and CEO of Blue Martini Software. "Blue Martini Channels will enable companies to leverage their assets across multiple channels, from partner extranets to online marketplaces. It allows companies to build partner portals that result in more effective and profitable resellers and distributors."

AMR Research estimates that online marketplace sales will top $3 trillion by 2004, representing 40 percent of all e-commerce transactions. AMR anticipates that private marketplaces will represent a $106 billion market opportunity over the next five years.

For companies doing business through online marketplaces, Blue Martini Software provides marketplace adapters that publish web-ready content to online marketplaces or e-procurement applications. Vendors will be able to differentiate their products in a marketplace environment by allowing customers to move quickly between a marketplace and the vendors website. Blue Martini Software has agreements with Commerce One and Ariba to develop marketplace adapters for their applications. The marketplace adapters will work with Blue Martini Channels, as well as other applications from Blue Martini Software.

With Blue Martini Channels companies can also deploy self-service partner portals that provide the information and sales tools partners need to represent a product through the entire sales process. It will enable companies to deliver compelling campaigns for attracting and retaining partners. Companies will be able to quickly distribute qualified sales leads to the right channel partners, and deliver the latest product information, competitive insights, and marketing collateral to help partners engage with customers. Companies will be able to provide partners with real-time inventory or availability-to-promise information so they can make delivery commitments, manage orders and check status online.

Companies such as S.P. Richards, a wholly owned subsidiary of the Genuine Parts Company and leading wholesale distributor of business and office supplies; Elemica, a global chemical industry marketplace founded by 22 of the world's leading chemical companies; Iomega, a global leader in data management solutions; Bernina, a sewing machine manufacturer; ClubColors, a logo apparel and promotional product manufacturer; and Systemax, a manufacturer of private label PCs and distributors of name-brand PCs, hardware, software, and accessories, plan to deploy Blue Martini Channels to address their business-to-business needs.

"S.P. Richards distributes a wide spectrum of business products to office products resellers throughout the U.S. and Canada - everything from office supplies and furniture to computer and janitorial supplies," said Bill Hurley, vice president, marketing at S.P. Richards. "By using the Blue Martini Universal Catalogue capabilities, S.P. Richards will be able to centralise its digital assets, run enterprise-wide reports, and publish product data and marketing information across departments and all external channels."

"Elemica is one of the first marketplaces to offer true end-to-end solutions to address supply chain inefficiencies in the chemical industry," said Stewart McCutcheon, chief technology officer at Elemica. "Blue Martini Channels gives our clients the broad functionality they require coupled with ease of use - the best of both worlds."

Part of the tightly integrated Blue Martini 4 suite, Blue Martini Channels is one of four new applications that address key business initiatives: marketing, commerce, channels and service. The Blue Martini 4 suite provides the high performance, 24-by-7 availability, legacy integration and ease of management that companies need for building and deploying mission-critical e-business ventures. The Blue Martini 4 suite offers visual tools and pre-built adapters for integrating external systems through Enterprise Java Beans (EJB), Extensible Mark-up Language (XML), Common Object Request Broker Architecture (CORBA), Microsoft's COM/DCOM and IBM's MQ Series interfaces. It provides seamless integration with leading applications such as SAP, Agile, Oracle, PeopleSoft and Siebel, and popular enterprise application integration solutions.

Pricing and Availability
Blue Martini Channels is available stand-alone or fully integrated in the Blue Martini 4 suite. Pricing for Blue Martini Channels starts at $250,000.

About Blue Martini Software
Blue Martini Software provides e-CRM applications that help companies to understand, target and interact with their customers and business partners. Blue Martini 4 includes four applications: Blue Martini Marketing, Blue Martini Commerce, Blue Martini Channels and Blue Martini Service. Each application can be used individually or as an integrated business suite for managing catalogues, content, campaigns, transactions, analysis and personalization. Blue Martini Software applications drive revenues by providing compelling interactions, maximising the effectiveness of marketing programs, enabling channel partners to sell more effectively, and providing multi-channel customer service. Blue Martini Software's customers include Canadian Tire Corporation, Elemica, Harley-Davidson, Iomega Corporation, Levi Strauss & Co., Oce Technologies, Oncology Therapeutics Network (OTN), Polaroid Corporation, PublixDirect and Saks Fifth Avenue. Blue Martini Software can be reached at 650-!
356-4000 or www.bluemartini.com.

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Note to editors: "Blue Martini" and "Blue Martini Software" are trademarks of Blue Martini Software, 2600 Campus Drive, San Mateo, CA 94403. Other product and company names may be the trademarks of their respective owners.

This news release regarding Blue Martini Channels includes forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to: delays in the development or release of new applications or application enhancements by Blue Martini Software, risk as related to market acceptance of Blue Martini Software's applications; customisation, deployment and/or operational delays or errors associated with Blue Martini Software's applications or those of third parties; Blue Martini Software's need to maintain and enhance business relationships with systems integrators and other parties; activities by Blue Martini Software and others regarding protection of intellectual property; and release of competitive applications and other actions by competitors. Further details on these risks are set forth in Blue Martini Sof!
tware's filings with the Securities and Exchange Commission (_SEC_), including its filing on Form 10-Q for the quarter ended September 30, 2000. These filings are available on a website maintained by the SEC at http://www.sec.gov. These forward-looking statements are generally identified by words such as "expect," "will," "anticipate," "intend," "believe," "should," "estimate," and other similar words and expressions. Blue Martini does not undertake an obligation to update forward-looking statements.

Contacts:

Cally Finch/Paula Oliver

The Weber Group Europe

+44 20 7240 6189

cfinch@webergroup.co.uk

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