HNC Reports Second Quarter 2001 Results

HNC Software Inc, a leader in Customer Insight solutions incorporating intelligent response, decision management and customer analytics, announced its financial results for the second quarter ended June 30, 2001.

On Sept. 29, 2000, HNC distributed to its stockholders all of its shares of its former subsidiary, Retek Inc. Accordingly, unlike its year ago quarter ended June 30, 2000, HNC's financial results for the second quarter of 2001 do not include or reflect Retek's operations.

HNC Pro Forma Results Excluding Retek

Revenues for the second quarter of 2001 were $59.0 million, representing an increase of 23 percent over revenues of $47.8 million excluding Retek for the second quarter of 2000.

Diluted operational net income for the second quarter of 2001 was $0.15 per share (See footnotes No. 4 and No. 5 on the following table entitled, "Selected Pro Forma Financial Data, Excluding Retek."), compared to diluted operational net income for the second quarter of 2000 excluding Retek of $0.08 per share.

HNC Actual Consolidated Results

Revenues for the second quarter of 2001, which excluded Retek, were $59.0 million. Revenues for the second quarter of 2000, which included Retek, were $67.4 million. Diluted net loss for the second quarter of 2001, which excluded Retek, was $6.0 million, or $0.17 per share. Diluted net loss for the second quarter of 2000, which included Retek, was $20.1 million, or $0.75 per share.

"I'm very pleased with the team effort that delivered our second quarter results. In this business climate where customers are cautious, a vendor really must offer a solid value proposition, and I think that's where HNC differentiates itself. We can demonstrate that our Customer Insight platform is going to save our clients money, help them acquire new customers and increase their profitability," said John Mutch, chief executive officer, HNC Software.

HNC Software hosted a live Web cast conference call regarding second quarter 2001 operating results on Wednesday, July 18. During the call, HNC executives reviewed topics including:

• second quarter 2001 operating results
• 2001 guidance
• new products
• industry trends
• technology updates
• a general business overview and update.

A Web cast recording of the conference call is available for 30 days at www.hnc.com.

About HNC Software Inc

HNC Software is a leading provider of Customer Insight solutions including intelligent response, decision management, and customer analytics software that enable companies in the financial, telecommunications, e-commerce and insurance industries to acquire, manage and retain customers. For more information, visit www.hnc.com or contact Melinda Bateman at 858-799-3880.