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Press Releases Wednesday, June 27, 2001   
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Sainsbury`s Selects Blue Martini Software To Power Online Grocery Shopping Site `Sainsbury`s To You`

Leading UK Grocer To Deliver Highly Personalized Site

MAIDENHEAD, UK , (06/27/2001)--Blue Martini Software, Inc. (NASDAQ: BLUE) today announced that leading UK grocer, Sainsbury`s, has selected the Blue Martini external customer relationship management (eCRM) application suite to power its online grocery shopping site, "Sainsbury`s To You." The new site will offer highly personalised, customer interactions, robust analytics and campaign management. Accenture will provide systems integration and project management for the online grocery shopping initiative.

The Blue Martini 4 eCRM application suite enables Sainsbury`s to understand, target and interact with its customers across multiple channels, including websites, via interactive television, and through marketing campaigns. Sainsbury`s will use the application suite`s on-line catalogue management functionality to centrally manage and deploy their extensive catalogue. Running on the Sun platform, the suite will provide Sainsbury`s with the potential to have a single view of its customers, while simultaneously giving its customers a consistent yet personalised view of the company - whether they are purchasing on the web or calling a customer service representative for shopping assistance.

"We selected the Blue Martini eCRM application suite because it combined all the key elements we required to support our online grocery shopping initiative: transactional capabilities, personalisation, robust data mining and campaign management," said Angela Megson, Director of eCommerce and Business Development. "We went through an extensive evaluation of vendors and found the Blue Martini solution to have proven performance and the broadest product range." By implementing the Blue Martini 4 eCRM application suite we will be able to provide personalised customer interactions across all of our channels," Megson continued. "Furthermore, we can deliver this solution quicker with the Blue Martini application suite, and Accenture`s proven systems integration and project management, more so than with any competitive solution."

"Blue Martini Software has worked with leading grocers through-out the world to enable them to extend their successful businesses, and reach their customers through additional channels," said Monte Zweben, president and CEO of Blue Martini Software. "Sainsbury`s chose the Blue Martini 4 application suite, to deliver a consistent and personalised experience to its customers wherever they are."

The Blue Martini 4 eCRM application suite will enable Sainsbury`s to segment its customers, and based on that segmentation, manage personalised offers and targeted campaigns that will help it to acquire and retain customers and increase revenue.

"To ensure a high standard of customer service, Sainsbury`s clearly required a dependable eCRM application that would replicate the customer experience in its stores through its other channels," said Richard Wildman, Accenture client partner. "With Blue Martini 4, we will be able to help design and implement a system that will contain costs, and inevitably enhance Sainsbury`s revenue."

About Sainsbury`s
Sainsbury`s (FTSE:SBRY) is the one of the UK`s leading grocers with revenues exceeding $25 billion, they operate 450 stores in the UK, employ 140,000 staff and serve over 10 million customers per week. Sainsbury`s is the world`s fourth largest online grocery shopping company.

About Blue Martini Software
Blue Martini Software delivers on the promise of CRM. With the Blue Martini 4 eCRM application suite, Blue Martini Software helps companies understand, target and interact with their customers and business partners across multiple touch points. The suite includes four applications: Blue Martini Marketing, Blue Martini Commerce, Blue Martini Channels and Blue Martini Service. Each application can be used individually to meet a specific business need, or as a complete suite for managing catalogs, content, transactions, campaigns, analysis and personalisation. Blue Martini Software`s customers include Canadian Tire Corporation, Harley-Davidson, Iomega Corporation, Levi Strauss & Co., Oncology Therapeutics Network (OTN), Polaroid Corporation, PublixDirect and Saks Fifth Avenue. Blue Martini can be reached at +44 1628 421792 or www.bluemartini.com.

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 and Sainsbury`s 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 Software`s filings with the Securities and Exchange Commission ("SEC"), including its filing on Form 10-Q for the quarter ended March 31, 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," "anticipate," "will," "intend," "believe," "hope," "assume," "estimate," "plan," "should" and other similar words and expressions. Blue Martini Software does not undertake an obligation to update forward-looking statements.

Contact:
Paula Oliver/Cally Finch
Weber Group
+(44) (0) 20 7240 6189
poliver@webergroup.co.uk cfinch@webergroup.co.uk

Kate Sellers Blatt
Blue Martini Software
(00) (1) 650-356-7851
kateb@bluemartini.com

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