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Press Releases Monday, January 20, 2003   
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New In-Store CRM Solutions From IBM And Blue Martini Software Help Retailers Sell More Effectively

Contacts:

Andrew Hoerner
Blue Martini Software
650-356-4395
ahoerner@bluemartini.com

Kathleen Gratehouse
Schwartz Communications
415-512-0770
bluemartini@schwartz-pr.com

Retail AdvantageTM Bundles Start at $11,995/month Including Software and P-Series* Hardware!; Proven Solutions Increase Customer Loyalty, Deliver Rapid ROI

NRF ANNUAL-NEW YORK. , (01/14/2003)-- Blue Martini Software, Inc. today announced the availability of four new solutions for IBM eServer* systems to help retailers increase customer loyalty, sell more effectively and reduce their costs. The Blue Martini Retail Advantage Bundles automate Retail CRM best practices for Clienteling, Gift Registry, Loyalty Programs and Relationship Marketing and provide an end-to-end solution that includes software, hardware and monthly financing. The bundles include Blue Martini Retail CRM (Customer Relationship Management) solutions running on IBM eServer pSeries products. The bundles can be deployed across any retail channel, including bricks and mortar stores, websites, email, direct mail and call centers.

The Retail Advantage Bundles combine Blue Martini`s Retail CRM applications with IBM`s technology offerings. Available bundles include:

* Clienteling -Blue Martini Clienteling automates the retail best practice of high-touch customer service. Clienteling enables store associates to provide customers with timely messages, targeted promotions, event details and suggested merchandise through store-based kiosks, point of sale (POS) devices, personal computers, and wireless handheld devices.
* Gift Registry- Blue Martini offers robust gift registry solutions standalone, and can also enhance existing gift registries with new marketing features designed to increase registry sales. Features include a multi-channel wish list that is synchronized between the store, website, kiosks, wireless devices and call centers in real-time. Integration with wireless devices enables shoppers to electronically scan desired items to add them to their wish lists, while viewing relevant information, cross-sells and up-sells.
* Loyalty Marketing - Blue Martini enhances loyalty programs by automating event-driven loyalty actions. For example, retailers can use Blue Martini-powered loyalty solutions to pull customer loyalty point levels from an existing data warehouse and automatically generate offers and communications via e-mail or at the when loyalty point levels reach or are about to reach specified milestones.
* Relationship Marketing - Blue Martini Relationship Marketing enables marketing and merchandising teams to roll out event-triggered, multi-step campaigns across all sales channels in a cost-effective manner. Relationship Marketing can be used as a standalone application, or used in conjunction with existing sales and marketing applications.

"Blue Martini aims to be the de facto standard for Retail CRM," said Monte Zweben, Chairman and CEO, Blue Martini Software. "The Retail Advantage Bundles are based on our best practice deployments of Retail CRM at leading retailers like Kohl`s, Nordstrom and Saks Fifth Avenue. Blue Martini and IBM share a vision for Retail CRM, and the four pillars of this vision -- Clienteling, Gift Registry, Relationship Marketing and Loyalty Marketing - are proven to increase sales effectiveness and improve customer loyalty."

The Retail Advantage Bundles are one of the latest milestones in the IBM and Blue Martini relationship. Recent achievements include:

* Blue Martini announced its certification as StoreProven* by IBM on IBM Kiosks including IBM SurePOS 700* and IBM 4694* (see related announcement, IBM Certifies Blue Martini Retail CRM Solutions As StoreProven, January 14, 2003)
* Blue Martini also recently announced support for IBM eServer p650*, as well as record performance results on the new server.
* In March of 2002, Blue Martini announced the availability of Blue Martini 5.5 - IBM Edition, a new solution for IBM customers that delivers comprehensive, feature-rich functionality for personalized marketing, sales and self-service across all channels. In September of 2002, Blue Martini added support for IBM DB2 Database Software.

Details and Availability
This best-of-breed solution includes Blue Martini Retail CRM software, along with IBM WebSphere Portal* software, IBM eServer pSeries hardware and IBM Global Financing. The bundles are available today from Blue Martini Software. Bundle pricing starts at $11,995 per month including hardware and software.‡

About Blue Martini Software
Blue Martini CRM applications automate sales and marketing processes to help companies sell more effectively. Our retail solutions drive customer loyalty and increase sales by automating personalized interactions across every channel -- the Web, email, direct mail, call centers, and in stores. Our solutions for manufacturers shorten sales cycles and improve customer service by automating complex sales processes across every channel - through direct sales forces, through channel partners, and direct to customers. Retailers, including Carrefour, Debenhams, Kohl`s, Nordstrom and Saks Fifth Avenue, and manufacturers, including Bristol-Myers Squibb, DuPont, Hewlett-Packard, Panasonic and Rhodia, have successfully deployed our solutions to automate their sales and marketing processes.

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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. *Indicates trademark or registered trademark of International Business Machines Corporation. Other product and company names may be the trademarks of their respective owners.

‡Bundles starting at $11,995 include Blue Martini Relationship Marketing software license for 2 CPUs, 3 years software maintenance, purchase of one pSeries P630 server with 2CPUs. Starting price excludes additional products and services that may be required to deploy each bundle and may exclude some financing-related costs. Additional hardware, software and services are available at an additional cost. Additional terms and conditions apply. Contact Blue Martini Software for full Retail Advantage and pricing details.

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 the software development or release and technical difficulties in software deployment or use; competition and technological changes and developments; risks associated with acquisitions; Blue Martini Software`s need to maintain and enhance business relationships with systems integrators and other parties; and general economic and market conditions. Details on these and other risks are set forth in Blue Martini Software`s Form 10-Ks and 10-Qs filed with the Securities and Exchange Commission ("SEC"). 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," "anticipate," "will," "intend," "believe," "estimate," "plan," "should," "designed to" and other similar words and expressions. Blue Martini Software assumes no obligation to update forward-looking statements.
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