GSI Commerce Generates 300 Percent ROI in One Year with Epiphany Inter

GSI Commerce Generates 300 Percent ROI in One Year with Epiphany Interaction Advisor; Leading Ecommerce Solution Provider Grew Offer Acceptance Rates 480 Percent Year over Year

    Business Editors/High-Tech Writers

    SAN MATEO, Calif.--(BUSINESS WIRE)--Feb. 8, 2005--Epiphany, Inc. (Nasdaq:EPNY), a leading provider of customer relationship management (CRM) solutions for consumer-oriented businesses, today announced that GSI Commerce (Nasdaq:GSIC), a leading developer and provider of e-commerce solutions, raised customer offer acceptance rates by 480 percent in one year using Epiphany(R) Interaction Advisor. GSI Commerce also recognized a four-month payback period on the solution with its initial investment, which translates into a 300 percent return on its investment (ROI) in one year.
    GSI Commerce provides a comprehensive e-commerce solution enabling retailers, branded manufacturers, entertainment companies and professional sports organizations to operate e-commerce businesses. The company operates either all or a portion of the e-commerce businesses for approximately 45 partners. The company's e-commerce solution includes Web site design and development, e-commerce technology, managed hosting, order fulfillment, customer service, merchandising and order management, online merchandising, customer relationship management, content development and online marketing.
    Epiphany Interaction Advisor is integrated with the GSI Commerce platform. The analytic solution delivers personalized, targeted offers to online shoppers through GSI Commerce's customer service center and through the Web stores the company operates on behalf of its partners.
    "GSI Commerce has a commitment to provide distinctive value for our partners and their customers," said Jeff McCall, GSI Commerce vice president of CRM and customer effectiveness. "From a partner perspective, that means our attention is focused on finding, evaluating and implementing best-in-class solutions that drive real business results. Epiphany Interaction Advisor is a perfect example of one such solution. From a customer perspective, providing distinctive value means we strive relentlessly to provide a highly relevant, effective, and efficient customer experience. Epiphany Interaction Advisor is an enabling solution for us in that it delivers real-time, customer-specific recommendations across both Web and other customer service touch points. Our work with Epiphany has helped GSI Commerce achieve exceptional results for our partners and their customers."
    Epiphany Interaction Advisor uses a combination of business rules and real-time analytics to deliver the most relevant offer to a customer during an inbound interaction. GSI Commerce uses the solution to extend more than four million recommendations per month online, and more than 500,000 recommendations per month in the customer service center. Epiphany Interaction Advisor has helped drive incremental online and/or contact center sales across GSI Commerce's partner base of online retail stores. Key to GSI Commerce's selection of Epiphany Interaction Advisor was the software's ability to accommodate the addition of new partner Web stores on the GSI Commerce platform.
    Using Epiphany Interaction Advisor, GSI Commerce has generated excellent response rates to offers delivered in its call center and on its partners' Web stores:

--	Call center offer acceptance rates as high as 20.3 percent.
--	Average call center offer acceptance of 10.86 percent -- 99 percent higher than the channel average of 5.45 percent(1).
--	Web click-through rates as high as 7.4 percent.
--	Average Web click-through rate of 3.0 percent -- 15 times the channel average of 0.20 percent for non-rich media advertisements(2).

    "Leading consumer-oriented companies are taking advantage of inbound marketing solutions to provide high levels of customer service as well as maximize sales opportunities," said Karen Richardson, CEO, Epiphany. "The results GSI Commerce has achieved with Epiphany Interaction Advisor demonstrate the success our CRM solutions provide in generating incremental sales through intelligent customer interactions."

    About Epiphany

    Epiphany(R) provides CRM software solutions that increase profitability at the largest consumer-oriented companies by making every customer interaction intelligent. With over 475 customers -- including nearly 35 percent of the Fortune 100 -- Epiphany powers deep customer insights and optimizes each relationship from both a revenue generation and customer retention viewpoint. Built on the industry's most advanced, service-oriented architecture, Epiphany software solutions address problems that span business silos, departmental functions and geographic locations, and result in rapid, measurable ROI. With a suite of blended marketing, sales and service solutions, Epiphany enables global organizations to align touchpoints, processes and technologies around the most valuable enterprise asset -- the customer. With worldwide headquarters in San Mateo, CA, Epiphany serves customers in more than 40 countries worldwide. For more information please visit www.epiphany.com.

    (1) Source: DIRECT Marketing Association 2004 Response Rate Study

    (2) Source: Doubleclick Q3 '04 Ad Serving Trends

    Epiphany Safe Harbor Statement

    This press release contains forward-looking statements relating to future results that may be achieved by customers using the Epiphany E6 software product and future sales opportunities. Actual results could differ materially from such forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include customers' individual purchasing decisions, competition and the introduction of new products and services by competitors, our ability to hire and retain qualified personnel, and general economic conditions. These factors and others are described in more detail in Epiphany's public reports filed with the Securities and Exchange Commission, such as those discussed in the "Risk Factors" section included in the Epiphany's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in the Epiphany's prior press releases. Epiphany assumes no duty to update any statements made in this press release.

    GSI Commerce Safe Harbor Statement

    All statements made in this release other than statements of historical fact are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "will," "would," "should," "guidance," "potential," "continue," "project," "forecast," "confident," "prospects," and similar expressions typically are used to identify forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of GSI Commerce and the industries and markets in which GSI Commerce operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Factors which may affect GSI Commerce's business, financial condition and operating results include the effects of changes in the economy, consumer spending, the financial markets and the industries in which GSI Commerce and its partners operate, changes affecting the Internet and e-commerce, the ability of GSI Commerce to develop and maintain relationships with strategic partners and suppliers and the timing of its establishment or extension of its relationships with strategic partners, the ability of GSI Commerce to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of GSI Commerce to attract and retain qualified personnel, the ability of GSI Commerce to successfully integrate its acquisitions of other businesses, if any, and the performance of acquired businesses. More information about potential factors that could affect GSI Commerce can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by GSI Commerce with the Securities and Exchange Commission. GSI Commerce expressly disclaims any intent or obligation to update these forward-looking statements, except as otherwise specifically stated by GSI Commerce.

    Epiphany and the Epiphany logo are registered trademarks of Epiphany, Inc in the United States and other jurisdictions. All other trademarks are the property of their respective owners.

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CONTACT: Epiphany Gordon Evans, 650-356-3842 gevans@epiphany.com or Access Communications Cassie Divine, 415-844-6248 cdivine@accesspr.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE SOFTWARE NETWORKING INTERNET E-COMMERCE PRODUCT SOURCE: Epiphany, Inc.

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