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Exchange Applications and MicroStrategy Integrate Business Intelligence and Marketing Campaign Management Applications

Alliance provides businesses with unprecedented ability to monitor and assess marketing campaign response for improved marketing strategies

Boston, Mass., and Vienna, Va. – July 26, 1999 – A partnership announced today between Exchange Applications, Inc. (Nasdaq:EXAP) and MicroStrategy® Incorporated (Nasdaq: MSTR) will enable direct marketers to execute highly targeted marketing campaigns, monitor and evaluate customer responses to those campaigns, and apply findings to continuously refine and improve subsequent campaigns. Exchange Applications supplies software and services that optimize the value of customer relationships, while MicroStrategy provides business intelligence software. These companies have tightly integrated their campaign management and business intelligence applications, allowing marketers to develop marketing campaigns that improve customer acquisition, expansion, and retention.

The first product of the relationship, VALEX Response Analyzer, solves a difficult and critically important challenge for marketers: how to automate the attribution and analysis of campaign responses. VALEX Response Analyzer was announced today as an add-on component to the latest version of Exchange Applications’ award-winning marketing campaign management software, VALEX Release 3.0.

VALEX Response Analyzer, based on MicroStrategy’s DSS Web™ product, will enable VALEX 3.0 users to create browser-based reports that analyze campaign results, map net profitability and calculate marketing ROI. Customer responses, both direct and indirect, are collected by VALEX Response Manager, a new function within VALEX 3.0 that enables marketers to monitor all types of campaign response across multiple customer channels.

As part of the agreement, Exchange Applications has become a licensed reseller of MicroStrategy’s DSS Web product.

VALEX 3.0, VALEX Response Manager and VALEX Response Analyzer will be demonstrated for the first time at this week’s National Center for Database Marketing (NCDM) conference in Chicago, Ill., at Exchange Applications’ booth # 918. Together, these products comprise the first out-of-the-box solution that eliminates the complex customization currently required for performing response attribution.

"MicroStrategy’s business intelligence product line, DSS Suite™, is ubiquitous among direct marketers," said Exchange Applications’ Andrew Frawley, president and CEO. "When we sought to integrate decision support capabilities into VALEX, MicroStrategy was the natural choice."

According to MicroStrategy’s Sanju Bansal, executive vice president and chief operating officer, "Exchange Applications has capitalized on the strengths of DSS Suite and VALEX to create a packaged application that will provide companies with an alternative to building expensive and time-consuming custom applications. By integrating our market-leading products, we are providing companies with a powerful and scalable solution that will help them retain and acquire valuable customers."

U S West pleased with partnership

Denver-based U S West is a MicroStrategy and Exchange Applications’ customer. Alice Fawver, director, Customer Relationship Management at U S West’s Consumer Services Group, says that VALEX 3.0 and VALEX Response Analyzer will greatly simplify the process of determining accountability and measuring ROI of marketing campaigns. "The joint MicroStrategy/ Exchange Applications solution will enable us to measure indirect as well as direct response, and provide irrefutable proof of the success — or failure — of a campaign. We can then adjust, repeat or discontinue campaigns depending upon results." Fawver noted that, separately, MicroStrategy and Exchange Applications both play critical roles in U S West’s direct marketing efforts. "But integrated together, they will provide even more value to our organization."

Exchange Applications, Inc.

Exchange Applications, Inc. (Nasdaq:EXAP) helps businesses optimize the value of customer relationships across channels and product lines. Its award-winning VALEX software and consulting services help businesses identify customer segments offering high profit potential, and then maximize the value of those segments through highly targeted and coordinated direct marketing campaigns. Exchange Applications provides marketers with the technology to plan, build, execute, analyze and refine marketing campaigns that produce measurable return on investment. Through VALEX, a company automates and accelerates its marketing process to improve customer acquisition, expansion and retention. Exchange Applications is based in Boston, with offices in Denver, London and Sydney. Visit Exchange Applications on the Web at http://www.exapps.com.

MicroStrategy Incorporated

MicroStrategy is a leading worldwide provider of e-business intelligence software and related services. MicroStrategy’s product line, DSS Suite™, enables both proactive and interactive delivery of information from large-scale databases, providing Global 2000 enterprises a platform for developing solutions that deliver insight and intelligence to their enterprise, supply-chain, and customers.

MicroStrategy’s platform enables users to query and analyze the most detailed, transaction-level databases, turning data into business intelligence. In addition to supporting internal enterprise users, MicroStrategy’s platform delivers critical business information beyond corporate boundaries to customers, partners and supply chain constituencies through a broad range of pull and push technology such as the Internet, e-mail, telephones, pagers and other wireless communications devices. MicroStrategy’s platform is ideal for developing e-business solutions that are personalized and proactive, and that reach millions of users. MicroStrategy also offers a comprehensive set of consulting, training and support services for its customers and partners. For more information, please visit MicroStrategy’s Web site: http://www.microstrategy.com.

DSS Suite, DSS Web are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.