Press Releases

San Mateo, Calif. – October 4, 2004 – Coremetrics™, a leading provider of Web analytics, marketing and merchandising solutions, today announced its newest release, Coremetrics 2005. This release offers automated marketing ROI against any campaign, program or product; detailed analytics covering on-site search activity; real-time reporting against Key Performance Indicators (KPIs); and numerous user interface improvements. With Coremetrics 2005, clients leverage LIVE (Lifetime Individual Visitor Experience) Profiles to run the industry’s most sophisticated profile-based marketing and merchandising campaigns, and gain valuable recommendations that drive a highly profitable online channel. Servicing over 300 leading brands, Coremetrics provides unique solutions for retailers, financial service organizations and travel service providers. The new functionality in Coremetrics 2005 was developed to address the growing challenge of attracting, selling to, and increasing the value of high value customers.

"The Coremetrics 2005 upgrade offers a more graphical and consolidated view of data, allowing us to make better merchandising decisions," said Al Hurlebaus, director of e-commerce at CompUSA. "For example, on-site search activity has been detailed to follow a visitor's path from search term entry to conversion. Now we can easily find out if someone searched for a specific laptop but purchased another brand or another item. We're very excited about Coremetrics 2005 because it helps us understand exactly how our on-site search generates revenue."

Bob Chatham, Forrester Research's principal analyst, recently identified Coremetrics as an established leader in the B2C Web analytics market for combining premier behavioral analysis and segmentation tools with superb customer service of its own. Chatham also recommended that thoughtful marketing and service s organizations select Coremetrics, and predicted Coremetrics would remain the favorite of hardcore marketers for service -oriented sites.

“Coremetrics 2005 is an important upgrade for us because it extends functionality in the areas of online marketing and merchandising – two areas where the package has always been strong,” said Mike Sidders, director of e-commerce at Fingerhut. “With the automated marketing ROI enhancement and the increase in functionality for on-site search, we will be able to both easily determine the value of every marketing partner and to merchandise more effectively on our Web site. This newest release makes Web site data more actionable and underscores Coremetrics' commitment to helping their clients run a more profitable online business.”

Key enhancements in the areas of marketing and merchandising effectiveness, site optimization and profile marketing include:

• Marketing ROI: As online marketing channels grow more complex and expensive, the ability to measure exact ROI becomes critical and can be the determining factor in whether a company executes profitable or unprofitable campaigns. Coremetrics Marketing ROI offers a standard way of integrating marketing cost information and can be configured to include all cost data, as well as send rates, open rates and impressions. The rapid integration of marketing cost data enables organizations to understand the exact ROI derived from all campaigns in order to optimize marketing spend and performance.
• Accelerated Reporting: Online marketers need fast access to Web site visitor behavior to drive real-time campaigns and promotions. With the introduction of Accelerated Reporting, Coremetrics is the only vendor to deliver real-time analysis on KPIs including Merchandising, Category Analysis and Conversion Funnel. With fast access to data, marketers and merchandisers are able to improve the site, offer promotions or launch campaigns in real-time.
• On-Site Search: According to Jupiter Research, 80% of online shoppers visit retail sites with a specific product in mind, and 33% of these consumers use site search exclusively to locate a product. Coremetrics is the only company in the industry to correlate revenue influence to individual search terms, enabling online merchants to effectively monitor and track customer purchase intent and product affinities. With the release of Coremetrics 2005, users are also able to identify searches that did not return results in order to correct gaps in search engine taxonomies, improving customer satisfaction and conversion.
• On-Site Search Zoom: Online merchandisers can easily drill down on any on-site search term with Coremetrics' unique zoom functionality. This report allows merchants to fine tune their search engines by identifying and accounting for common misspellings of product line or item names. On-Site Search Zoom also enables merchandisers to improve up-sell and cross-sell effectiveness by delivering actionable insight into visitor product affinities through reporting on cross-searched terms and items sold as a result of specific searches.
• Page Zoom: Access to Page Zoom is available throughout the Coremetrics 2005 interface and enables companies to drill down on how a specific page performs. Page Zoom lets users trend page performance over time, view page performance by category and understand what natural search terms generated traffic for a specific page. Page Zoom serves as the starting point for all natural search optimization initiatives since it highlights the natural or organic search activity that drove visitors to a specific page.

Coremetrics 2005 will be publicly available in November 2004. For more information visit www.coremetrics.com.

About Coremetrics
Coremetrics is a leading provider of hosted Web analytics, marketing and merchandising solutions. The Company’s flagship product, Coremetrics 2005, is the industry's only Web analytics platform that captures and stores all customer and visitor clickstream activity to build LIVE (Lifetime Individual Visitor Experience) Profiles that serve as the foundation for all successful e-business initiatives. With Coremetrics 2005, online marketers, IT managers, and e-commerce executives are able to attract and convert high value visitors, increase customer lifetime value, and create a multi-channel view of customer behavior. Coremetrics service s over 300 unique brands online, including Bank of America, Columbia House, CompUSA, Eddie Bauer, Motorola, The Weather Channel, Victoria 's Secret, and Williams-Sonoma. Coremetrics is privately held with funding from Accel Partners and Highland Capital Partners, and is headquartered in San Mateo , California with offices in Austin , Texas and Portland , Oregon . To learn more about Coremetrics, visit www.coremetrics.com or call 877-721-CORE.

Coremetrics has strongly supported online privacy since its inception. To learn more, visit www.coremetrics.com/privacy.

###

Coremetrics is the trademark of Coremetrics, Inc. Any other marks used in this document are trademarks or registered trademarks of the manufacturers or marketers of the products with which the marks are associated.