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Press Releases Monday, March 29, 2004   
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Galeries Lafayette Selects Blue Martini and IBM to Power Multi-Channel Gift Registry

Leading French Department Store to Deploy IBM Technology and Blue Martini Sales Optimization Systems to Manage Strategic Service

Paris, France/San Mateo, Calif. , (03/29/2004)--Blue Martini Software, Inc. (NASDAQ: BLUE) and IBM today announced that Galeries Lafayette, one of the world`s most renowned department stores, has selected Blue Martini and IBM to power its multi-channel bridal gift registry program. With the solution, Galeries Lafayette will provide its customers with unparalleled service in the store, online, via the call center, and over e-mail.

"The wedding registry program is a highly visible, strategic service for us," said Eric Renard, CIO of Galeries Lafayette. "It provides us with an opportunity to establish lifelong relationships with young, new couples, as well as deepen our relationships with their extended friends and families. By providing exceptional service during the registry process, we are building bonds with our customers we hope will last for generations."

Galeries Lafayette will use the new system to provide customers with seamless interactions across all touchpoints. In addition, Galeries Lafayette will use the system to automate key processes, such as proactively recommending follow-ups by sales associates, or letting customers know when they should add additional gift options within certain price ranges. The solution will be comprised of Blue Martini sales optimization systems, IBM WebSphere, and IBM pSeries hardware.

By late 2004, Galeries Lafayette wedding registry customers will be able to use the solution, which will be hosted by IBM and enabled by IBM integration services. "The new Bridal Registry will optimize Galeries Lafayette`s processes and change the way they do business with their customers. It transforms this essential area of the business, giving customers the best service on demand when and where they want it," says Alain Benichou, IBM Vice President, Distribution Sector, Europe, Middle East and Africa.

"Galeries Lafayette has been providing customers with exceptional service for over 100 years," said Monte Zweben, Chairman and CEO of Blue Martini Software. "We are delighted to support this legacy, and to help Galeries Lafayette continue to set the standard in customer service."

About Blue Martini Software
Blue Martini Software is a leading provider of sales optimization systems. Our software proactively guides sales people, partners, and customers through sales interactions, helping them to sell more. Over 160 companies worldwide including Carrefour, DuPont, Harley Davidson, Kohl`s, Mitsubishi, Panasonic, Saks Fifth Avenue, and Sprint have adopted our sales optimization systems to sell more effectively. Blue Martini Software is headquartered in San Mateo, California and can be reached at 650-356-4000 or www.bluemartini.com.

About IBM
IBM, the world`s largest information technology company, is the leader in providing the Retail Industry with a full range of e-business solutions, including: point-of-sale systems, automated self-checkout systems, other hardware and software technology, consulting focused on business transformation, IT strategy and planning, store operations improvement, and supply chain optimization, and with services, such as outsourcing, managed operations, systems integration, and application development and design. IBM has a list of retail customers in 100 countries worldwide that reads like a "Who`s Who" of retailing. For more information on IBM Retail Solutions, please visit http://www.ibm.com/industries/retail

About Galeries Lafayette
Galeries Lafayette was founded in 1893, the last in a series of Parisian department stores. Today, the group has 59 town-centre stores throughout France and one in Berlin. The main store on the Boulevard Haussmann alone attracts over 80,000 visitors a day and houses a dedicated women`s department under a magnificent listed dome. An adjoining building is home to a men`s store (Lafayette Homme) and a foodhall (Lafayette Gourmet). On 5 March 2004, a brand-new homeware department (Lafayette Maison) was opened across the street. In all, the Boulevard Haussmann site offers 65 000-sq m of retail space. Galeries Lafayette`s long-standing values reflect more than ever the vision of its founders, true pioneers of modern commerce who helped democratise fashion. In 2003, the Galeries Lafayette group posted sales of EUR 5.5 million and employed over 35,000 staff.

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 Software includes forward-looking statements, based on current expectations, that involve risks and 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: risks associated with the development and licensing of software generally, including potential delays in software development or release, technical difficulties in software deployment or use, and long and variable sales cycles; competition and technological changes and developments; financial and other impacts of staffing reductions and other cost-control measures; risks associated with foreign operations and economies; and general economic and market conditions. Details on these and other risks are set forth in Blue Martini Software`s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission ("SEC"). These filings are available on a website maintained by the SEC at http://www.sec.gov. Blue Martini Software assumes no obligation to update the information in this cover letter and summary document.

Contacts:
Media:
Carolyn Adams or Julie Huang
Schwartz Communications
415-512-0770
bluemartini@schwartz-pr.com

Investors:
Tracy Vernali
Blue Martini Software
650-356-7638
ir@bluemartini.com

Brandi Piacente
Weber Shandwick
415-248-3430
bpiacente@financialrelationsboard.com

IBM:
Arlene Wainstein
Communications Manager
IBM Distribution Sector EMEA
Ph:33 (0) 141 88-6664
Fax:33 (0) 141 88-6888
Mobile: 33 (0) 6 7275-9574
arlenewainstein@fr.ibm.com

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