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Study Shows Companies Lost £2.8 Billion
in Potential e-Commerce Revenue in 1999

Attacking the problem of lost e-commerce revenue, EDS (NYSE: EDS) and Tonic Software have announced a strategic alliance that allows EDS to offer a complete web applications management solution to ensure web site availability, scalability, and integrity to its 600 global Web hosting clients.

In 1999, e-commerce sites lost £2.8 billion ($4 billion) in purchases due to poor performing web sites, according to a Standish Group study. The study showed that large e-commerce companies experience losses ranging from $1,000 to $10,000 per minute due to web site down time, which translates to losses ranging from $2,373,000 to $10,095,000 per year.

"Web hosting clients are demanding the highest levels of performance, availability, and security, from their web sites," said Dennis Law, vice president of Hosting Services and Portfolio Management with the EDS Information Solutions line of business. "We’re talking about the Internet for grownups here. Companies rely on their sites as premium distribution channels that have become as important as keeping a retail store open. Service level agreements with our customers are based on web site uptime, requiring that customers’ sites are performing 99.99 percent of the time under a variety of conditions. Tonic allows us to deliver a value-based superior service."

Tonic is the first unified solution for controlling and managing the entire life cycle of a web application. Tonic’s platform product was introduced earlier this year by Tonic Software, an Internet infrastructure company that industry analysts consider to be leading the emerging Web Applications Management (WAM) market. Analysts expect the WAM market to generate £0.8 billion ($1.2 billion) in revenues by 2002.

Tonic ensures availability, functional and content integrity and enables scalability assessment and real-time monitoring of web sites. Tonic's WAM solution protects global enterprises, megasites, Internet Service Providers (ISPs) and Application Service Providers (ASPs) against loss of revenue, customer confidence, and brand reputation due to web site downtime, slow response time, or other problems with content or functionality.

Tonic's innovative and integrated approach to web applications management ensures a web application’s peak performance and 24/7 availability. Tonic provides Internet application developers and managers with complete control of the entire web application life cycle, from development to testing to online operations. Tonic is the only integrated platform to address content and functional integrity assessment to verify that the right content is delivered to the right end-user and to ensure a site’s navigability; scalability assessment to load-test a site prior to going live; and continuous monitoring to ensure availability and automatically initiate corrective actions.

"Tonic offers a technology solution that previously didn’t exist in the market place," said Law. "Tonic delivers a management solution to a degree that no other provider can offer. Not only does Tonic monitor and report uptime and downtime, but it also diagnoses and corrects the problem - which is a much more comprehensive and useful solution to us and our customers."

"The agreement with EDS is a strong validation of the Tonic solution", says Tony Budd, General Manager of Tonic Software Europe. "It gives us the opportunity in the UK and Europe to work co-operatively with EDS and to ensure their customers benefit from this collaboration. Tonic will play a valuable role in improving web-site performance."

Tonic uses real-life, true-user simulations from a customer's perspective to manage the complete life cycle of business-critical web applications. Tonic supports HTTP, SMTP, HTML, XML and WML, and is currently being expanded to support WAP.

For further information on Tonic Software, please contact

Tony Budd,

General Manager,

Tonic Software,

Pinewood,

Chineham Business Park,

Basingstoke,

Hampshire,

England,

RG24 8AL.

Tel: (0)1256 698 048

Fax: (0)1256 698 584

Email: tony.budd@tonicsoftware.com


Website: http://www.tonic.com



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Notes to Editors:

About EDS

EDS is a recognised global leader in providing e-business and information technology services to 9,000 business and government clients in about 50 countries around the world. Having founded the IT services industry more than 35 years ago, EDS delivers high value management consulting, electronic business solutions, business process management, and systems and technology expertise to help clients simplify complexity and achieve superior value in the digital economy.

The company brings deep industry practice knowledge to solve challenges in a wide variety of industries, including communications, energy and chemicals, financial services, government, healthcare, products and retailing, and travel and transportation. EDS reported revenues of $18.5 billion in 1999. The company’s stock is traded on the New York Stock Exchange (NYSE:EDS) and the London Stock Exchange. To find out more about EDS, please visit http://www.eds.com


About Tonic Software

Tonic is a leading web applications management (WAM) provider offering a platform product that spans the entire life cycle of a web application. Tonic ensures the site's functionality, scalability and durability during development and testing phases and closely monitors real-time performance levels.

Founded in 1999, Tonic secured its first round of funding from Sevin Rosen Funds, the leading technology venture capital firm known for its successes including Compaq and Lotus. Tonic is headquartered in Austin, Texas, with seven offices throughout the United States including Atlanta, Boston, New York, Chicago, Dallas, San Diego, and San Francisco. The company recently established its European headquarters in Basingstoke, England. For more information, please visit Tonic at http://www.tonic.com


Tonic, Tonic Index, and Guaranteeing Your Net Works are registered trademarks of Tonic Software, Inc. in the United States and the United Kingdom.

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