New Study Projects Robust Growth for Predictive Analytics Software; Co

    Business Editors/Technology Writers

    CHICAGO--(BUSINESS WIRE)--Jan. 25, 2005--The predictive analytics software sector is quickly coming into its own, according to a new study(1) from the leading analyst firm IDC. IDC (http://www.idc.com/) projects that the sector will grow at a compound annual growth rate of 8 percent during the next five years. The new IDC study confirms the emergence of predictive analytics as a distinct software sector.
    The IDC study specifically establishes a definition and segmentation of end-user business analytics software into core and predictive analytics. "The growth in end-user business analytics in both revenue and importance demands a refinement in the definition of analytics," the study states. The study provides a five-year growth forecast for total core and predictive analytics software for 2004-2008.
    IDC defines predictive analytics software to "include all analytics, both tools and packaged applications, more complex in their mathematics than core analytics."
    "Predictive analytics are used to determine the probable future outcome of an event or the likelihood of a current state where it is unknown," the study continues. "These analytics include data mining, clustering, decision trees, market basket analysis, regression modeling, neural nets, genetic algorithms, text mining, hypothesis testing, decision analytics, and so on."
    "Both facets of analytics are equally important," notes Robert Blumstein, IDC Research Director, CRM Analytics and Marketing Applications, "and understanding them is fundamental for maintaining a strategic view." The study projects that "core and predictive analytics will continue to grow in importance as companies seek to democratize and standardize their decision making. Users will adopt the technologies on an as-needed basis, typically to address specific analytic problems such as corporate planning or broad company issues such as optimized pricing across a distributed sales force."
    Jack Noonan, the President and CEO of SPSS Inc. (NASDAQ:SPSS), a worldwide leader of predictive analytics software, said he was not surprised by IDC's new findings. "SPSS software is becoming increasingly integral to the most critical strategic operations of Fortune 1000 companies worldwide. The software is not just helping drive these operations but is also producing high returns on investment (ROI)."
    IDC, in a separate assessment, has found that business applications involving predictive analytics software generate an average ROI of 145 percent(2), much higher than that for other business analytical software.

    1 Source: Worldwide End-User Business Analytics 2004-2008
    Forecast: Core Versus Predictive, IDC # 32642, December 2004

    2 Source: Predictive Analytics and ROI: Lessons from IDC's
    Financial Impact Study, IDC #30080, September 2003

    About SPSS

    SPSS Inc. (NASDAQ:SPSS) is a leading worldwide provider of predictive analytics software and solutions. The company's predictive analytics technology connects data to effective strategic action by drawing reliable conclusions about current conditions and critical future events. More than 250,000 commercial, academic, and public sector customers rely on SPSS technology to help increase revenue, reduce costs, improve important processes, and detect and prevent fraud. More than 95 percent of the Fortune 1000 companies are SPSS customers. Founded in 1968, SPSS is headquartered in Chicago, Illinois. For additional information, please visit www.spss.com.

    Safe Harbor Statement

    This press release contains forward-looking information made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements can be identified by phrases such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "could," "designed," "should be" and other similar expressions which denote expectations of future events rather than statements of fact. These forward-looking statements involve factors that are subject to risks and uncertainties. These risks and uncertainties, which may not be currently ascertainable and many of which are beyond the Company's control, may cause the Company's actual results, performance or achievements to be materially different than the results, performance or achievements expressed in or implied by the forward-looking statements. These risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission ("SEC"). Copies of these filings are available either on the SEC's website at www.sec.gov or from the Company's investor relations department. In light of these risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that any future results, performance or achievements will be attained. These forward-looking statements speak only as of the date on which they are made. The Company assumes no obligation to update the forward-looking statements contained in this press release.

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CONTACT: SPSS Inc. Marc Brailov, 312-651-3459 mbrailov@spss.com

KEYWORD: ILLINOIS INDUSTRY KEYWORD: HARDWARE SOFTWARE SOURCE: SPSS Inc.

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