Financial Watch:

Accrue Software Teams with IBM

Accrue Software Inc, a leading provider of enterprise analytical solutions for e-businesses, announced a relationship to integrate IBM's DB2 Universal Database running on Sun Solaris with Accrue G2. Businesses can now seamlessly reap the benefits of IBM's scalable, reliable and easy-to-maintain database technology and Accrue's next generation e-business analysis platform for more immediate and targeted business decision-making.

Utilizing IBM's DB2 technology, Accrue customers can now acquire a complete solution directly from one vendor rather than having to enter into separate negotiations with multiple companies. The relationship with IBM will also allow current DB2 customers to access Accrue's solutions to report and analyze business data.

"In order to understand, anticipate and act on customer data, e-businesses need both a scalable database and advanced analytics," said Kevin Maloney, vice president of Data Management Sales for the Americas at IBM. "The IBM/Accrue partnership will give e-businesses a one-stop-shop for both their database and analytics needs. We are very excited to partner with Accrue to meet this rapidly growing market need."

"As a leading database technology provider in the multi-channel commerce segment, IBM is the natural choice as Accrue's preferred database Business Partner," said Jonathan D. Becher, senior vice president of Corporate Development for Accrue Software. "Through the relationship with IBM, Accrue is delivering on its commitment to develop an analytical solution that easily integrates with existing technologies and will grow with our customers' changing needs."

Leveraging the relationship with IBM, Accrue will implement marketing initiatives including Web seminars, executive briefings, and targeted marketing programs including:

• Education and training for Accrue services and support personnel, as well as for sales representatives on IBM DB2
• Scalability testing for data volume, numbers of concurrent users, and number of CPUs
• Services to help existing customers when migrating from Informix Redbrick to IBM DB2

Accrue G2 is a comprehensive e-business analytic platform designed to provide companies in the publishing/media/entertainment, multi-channel commerce, and financial services segments with deep insight into the relationships between Web site activity and business actions. The DB2-enabled version of Accrue G2 will be available late summer 2001.

About IBM's DB2 Universal Database

As the foundation for e-business, DB2 Universal Database is the industry's first multimedia, Web-ready relational database management system, strong enough to meet the demands of large corporations and flexible enough to serve medium-sized and small e-businesses. DB2 Universal Database combines integrated power for business intelligence, content management, enterprise information portals and e-business with industry-leading performance and reliability to drive the most demanding industry solutions. DB2 Universal Database together with Internet technology makes information easily accessible, available and secure. There are more than 60 million DB2 users from over 300,000 companies worldwide relying on IBM data management solutions. For more information, please visit www.software.ibm.com/data.

About Accrue Software Inc

Accrue Software is a leading provider of enterprise-level e-business analysis solutions that help companies understand, predict, and respond to online customer behavior. Accrue's solutions enable highly targeted campaigns to improve the profitability of customer interactions across multiple touch points. Accrue has more than 600 customers, including industry leaders such as FedEx, Gateway, Dow Jones, Eastman Kodak Company, MTV, Macy's, and Deutsche Telekom. Accrue Software was founded in 1996 and is headquartered in Fremont, Calif., with regional sales offices throughout the U.S. International headquarters are in Cologne, Germany and Singapore. Accrue has strategic partnerships with leading e-business vendors, including Art Technology Group, BEA, BroadVision, DoubleClick, IBM, Oracle, Sun Microsystems and Vignette. Accrue Software can be reached at 888-4ACCRUE or 510-580-4500 and at www.accrue.com.

Contact Ventaja Communications Inc, Alison Wellington-Toth, 650-558-0927, alison@ventajacom.com.

Datawatch Announces Third Quarter Results/Restructuring Plan

Datawatch Corporation announced results for its third fiscal quarter and a worldwide company restructuring plan.

Revenues for the quarter ended June 30, 2001 were $5,105,000 down from $6,874,000 in the same period of fiscal 2000. Net loss for the third fiscal 2001 quarter was $1,502,000 or $0.60 per diluted share, which compares to a net profit of $4,000 or $0.00 per diluted share a year ago.

Revenues for the nine months ended June 30, 2001 were $16,708,000 down from $20,767,000 for the same period of fiscal 2000. Net loss for the nine months ended June 30, 2001 was $3,191,000 or $1.35 per diluted share, which compares to a net loss of $522,000 or $0.25 per diluted share for the same period of fiscal 2000. The results reduce the tangible net worth and liquidity of the Company to a level which places the Company in breach of those covenants on its bank line. The Company is currently in negotiations with the bank to resolve the situation.

Commenting on the results, new president and CEO Robert Hagger said: "We are certainly disappointed in the results. The recent and dramatic slowdown in capital spending on high technology by organizations worldwide has negatively affected our enterprise software business. End user sales of our desktop software products remain strong, but total revenues have been adversely affected by stocking policies and warehouse closings by our multi- tier distributors. In light of these harsh realities, I have spent most of my time in the two weeks I have been president working with my new management team to take bold steps towards bringing the Company back to profitability. Through a restructuring plan that will result in cost reductions of well over $4 million on an annual basis, management is showing its resolve to return the Company to near-term profitability, and repositioning the Company to resume long-term growth."

"The restructuring is designed to bring together our worldwide operations under one administration," continued Hagger, "which will improve our ability to control the essential elements of the business. It also enables us to improve operating efficiencies and get closer to our customer's needs. The plan includes overhead and headcount reductions in the USA, Europe and Australia. It will be implemented in the Company's fourth fiscal quarter, ending September 30, 2001, and will result in a one-time charge which we believe will not exceed $800,000. Savings from the plan will flow from October 1, 2001. This plan will give the Company a fresh start for the new financial year, and I believe, enable the Company to meet its strategy of profitability and growth in the market for enterprise and desktop productivity tools." Note: As a result of the reverse stock split of Datawatch's common stock effective Tuesday, July 24, 2001, Datawatch is currently trading under the symbol "DWCHD". After twenty trading days from the date of the split, the "D" designation will be removed and the symbol will revert to "DWCH". The results reported in this announcement are based on the outstanding shares after the reverse stock split. Following the reverse stock split, approximately 2,524,000 shares will be outstanding.

About Datawatch

Datawatch Corporation is a leading provider of business intelligence/enterprise reporting, data transformation and support centre solutions that help organizations increase productivity, reduce costs and gain competitive advantage. Datawatch products are used in more than 20,000 companies, institutions and government agencies worldwide.

Datawatch works with VARs, integrators, consultants and independent software vendors who sell and support Datawatch products. In addition, Datawatch works with OEM customers who embed Datawatch components and technologies in their own solutions. The corporate address for Datawatch is 175 Cabot Street, Suite 503, Lowell, MA 01854-3633; telephone 978-441-2200, fax 978-441-1114; www.datawatch.com.

Decision Support Inc Announces Agreement with NIWS Co Ltd

Decision Support Inc, a leading provider of reporting and decision support software to the Unisys market and parent company of Metagon Technologies LLC, the database integration innovator, announced that it has signed a reseller agreement with NIWS Co Ltd, the pioneer of massively parallel processing technology in Japan and a leading provider of hardware, software, and systems engineering services to financial institutions in Japan. NIWS, based in Tokyo, will market DQbroker database integration technology and DQvista browser-based reporting tools to provide secure access to enterprise data stored on numerous, disparate platforms, and to develop executive reporting solutions. The technology enhances NIWS's ability to provide comprehensive systems services and maximize the value of their clients' IT investment.

Tetsuji Miyamoto, Executive Director of NIWS's Advanced Systems Division, said, "The database access capability offered by DQbroker is very impressive. Our testing showed us that it will solve many of our customers' problems with accessing disparate data from old and new systems alike; it is highly scalable; and it is surprisingly easy to install and maintain. DQbroker's efficient extract, transform, and load function is the best I have ever seen, and will significantly enhance the speed and accuracy with which we can provide data to data warehouses or other repositories. DQvista will give us a flexible tool to use in developing browser-based executive reporting portals and data marts, as well as allowing our customers to run real-time queries against multiple data sources simultaneously."

DQbroker, developed by Decision Support's spin-off company, Metagon Technologies LLC, is making gains in the database integration market because of its efficient architecture and its easy installation: DQbroker can be installed in just a few hours, with full functional capability immediately.

DQvista is a browser-based, thin-client report design and ad-hoc query tool that provides a seamless interface with Excel, and allows end-users to see multiple (joined) data sources as though they were one relational database. DQvista can be used to develop standard executive reports distributed via browser (including reporting portal development), e-mail, printer, or mobile device, as well as to run on-demand queries and analyses.

About NIWS Co Ltd

NIWS Co Ltd, www.niws.co.jp, offers cutting edge hardware, software, and systems engineering services to financial institutions throughout Japan. Since its founding in 1992 as a joint venture between IBM Japan Ltd (IBM) and Nomura Research Institute Ltd, (NRI), the company has grown at an average annual rate of 48%. It combines IBM's advanced massively parallel processing UNIX system and NRI's application expertise to provide solutions for more than 80 banks and insurance companies, and is expanding its market into distribution, manufacturing, and medical fields.

About Decision Support Inc

Decision Support Inc, www.decisionsupport.com, provides reporting and decision support software and services to a worldwide customer base comprising manufacturers, banks and credit unions, healthcare providers, and government agencies. Its latest generation of browser-based reporting solutions incorporates the DQbroker enterprise data access technology developed by its affiliate Metagon Technologies, and provides on-demand queries as well as standard scheduled reports.

Contact Anita Doran of Decision Support Inc, 1-704-845-1000, adoran@decisionsupport.com.

Hyperion Reports Fiscal Fourth Quarter and 2001 Results

Hyperion, a leader in business intelligence software, announced financial results for its fourth quarter and fiscal year ended June 30, 2001.

Total revenues for the quarter were $137.0 million, compared to $143.6 million for the same quarter a year ago. Software license revenue totaled $63.5 million compared to $76.0 million for the same period a year ago, while maintenance and services revenue totaled $73.4 million compared to $67.6 million in the same period a year ago. Excluding restructuring and non-recurring charges, the company reported pro forma net income of $1.8 million or $0.05 per share for the quarter.

Revenues for fiscal year 2001 increased five percent to $516.7 million from $492.4 million for fiscal year 2000. Excluding restructuring and non-recurring charges, pro forma net loss for fiscal year 2001 was $2.9 million, or $0.09 per share, compared to pro forma net income of $30.6 million, or $0.92 per share for fiscal year 2000.

For the fourth quarter of fiscal year 2001, net loss on a GAAP (generally accepted accounting principles) basis, which includes restructuring and non-recurring charges, was $27.9 million or $0.87 per share. The company incurred $42.8 million of restructuring and non-recurring charges, principally related to reductions in headcount and facilities. This compares to net income of $9.1 million, or $0.27 per share, on a GAAP basis in the fourth quarter a year ago. On a GAAP basis, net loss for fiscal year 2001 was $31.1 million or $0.95 per share, compared to net income for fiscal year 2000 of $28.8 million or $0.87 per share.

"We are encouraged by our return to profitability on an operating basis during the fourth quarter in light of these tough economic times," said Jeff Rodek, Hyperion's chairman and chief executive officer. "We are also pleased that we generated $13 million in cash flow from operations for the quarter and finished the quarter with $255 million in the bank. While our results were impacted by continued weakness in the global economy, our customers recognize the value of our software and services as our solutions enable them to measure their performance and drive profitability. Although the restructuring we undertook during the quarter was very difficult because of the impact on our employees and our financial results, we believe these actions were necessary to rebalance Hyperion's cost structure and position us for profitable growth."

Fourth Quarter Highlights

Developments during the quarter included:

• Significant customer wins at Cisco and Wal-Mart. Both companies made major investments in the Hyperion Business Intelligence Platform.
• Other significant customer wins at Arvest Bank Group, Convergys, Genzyme, HCA Healthcare, MBIA Insurance Corporation, and Mirant.
• The announcement that Hyperion and Microsoft joined forces to publish the XML for Analysis specification, which will allow open access to multidimensional databases from any platform and is expected to accelerate the adoption of Internet business intelligence software. This agreement underscores Hyperion's commitment to open standards.
• A corporate restructuring that included a reduction in workforce and consolidation of facilities as part of a company-wide initiative to align personnel with Hyperion's new strategy, cut costs, improve efficiency and increase performance and profitability.
• The release of Japanese and Russian language versions of Hyperion Pillar, which enhances the company's global product offerings.

Conference Call and Webcast

Hyperion executive management hosted a conference call and Webcast to discuss these financial results. A replay of the Webcast will also be available from the company's Web site.

About Hyperion

Hyperion is a global leader in business intelligence software. Hyperion helps managers succeed by helping their companies achieve greater performance and profitability. Business leaders use Hyperion products and services to plan, manage and execute on strategies by analyzing information on e-business initiatives, supply chain execution, customers, operations and finance. The company's market-leading Hyperion Essbase technology, packaged business analysis applications and tools are used by more than 6,000 organizations worldwide, including 86 of the Fortune 100, 64 of the Nikkei Top 100 in Japan and more than 40 of the Financial Times European Top 100. In addition, more than 400 Hyperion alliance partners deliver technology, applications and services to increase the flexibility and choice for customers. Headquartered in Sunnyvale, California, the company has offices in 20 countries. More information is available at www.hyperion.com, info@hyperion.com, or 800-286-8000.

Otis Elevator Turns to Cognos for CI Support

When people think of elevators, they think of Otis Elevator Company, the world's largest manufacturer and installer of elevators, escalators, and moving walkways. The launch of the company's sophisticated Web site, otis.com, transformed the way this Farmington, CT-based company serves its global customer base. It also presented an information challenge -- capturing critical click stream data to gain insight into customer needs in order to strengthen customer relationships.

Otis turned to Cognos, a leading provider of business intelligence solutions, and Sane Solutions, a market leader in click stream analysis software, for a powerful combined solution. Like many organizations, Otis recognized that a solid customer intelligence (CI) solution must include analysis of data from all customer touch points including the Web, since this is often the first or primary point of contact with their customers.

Web traffic and interaction analysis for each country was an important requirement, given Otis's highly distributed global user base. The integration of market-leading Web analytics and business intelligence products -- NetTracker from Sane Solutions and Cognos PowerPlay -- delivers a comprehensive solution that allows Otis to connect a particular kind of user with Web content. The solution also allows Otis to perform trend analysis that has transformed customer service.

"With Cognos we can slice and dice customer information. This means we can collect, and analyze powerful demographic and customer data," said Jeff Andersen, senior manager, e-business, Otis Elevator. "This information is not only critical to world-wide headquarters but we can also provide that customer intelligence to the regional managers to better target their communications to existing and prospective customers. The response from our teams has been truly overwhelming.

"We are using the customer intelligence solution to take commerce online, to really service customers-to understand who is visiting the site, if they are registering on the site, how long they are staying, what applications they are using online, and to facilitate commerce as well as to generate leads for our sales team," says Chuck Richards, IT project manager, Otis Elevator.

"Otis is a global company that's getting closer than ever to its customers thanks to the powerful pairing of click stream analysis and business intelligence technology," said Alan Rottenberg, senior vice president, E-Business Intelligence Applications Unit, Cognos. "In today's complex global economy, the ability to anticipate demand and customer requirements by converting raw data into actionable customer intelligence is critical. Visionary companies like Otis are clearly at the forefront of this revolution."

Otis Elevator Company

Otis Elevator Company, with headquarters in Farmington, Connecticut, is the world's largest company in manufacturing, installing and servicing elevators, escalators, moving walkways and shuttle systems. Otis has revenues exceeding $6 billion and Otis products are sold in more than 200 countries and territories worldwide. Otis is a subsidiary of United Technologies Corporation. For more information, visit www.otis.com.

Sane Solutions LLC

Founded in 1996, Sane Solutions develops and markets the award-winning NetTracker line of Web site traffic analysis software. NetTracker products are used worldwide by Fortune 500 corporations, educational institutions, government agencies, and ISPs.

Sane Solutions, LLC, is a privately held limited liability company located in North Kingstown, Rhode Island. For more information please contact Sane Solutions LLC, 35 Belver Ave., Suite 230, North Kingstown, RI 02852; 800-407-3570 or 401-295-4809; www.sane.com.

About Cognos

Cognos is a leading global provider of business intelligence solutions that optimize the performance of the world's largest and most successful organizations. Founded in 1969, Cognos does business with more than 17,000 customers in 120 countries around the world. Cognos business intelligence solutions and services are also available from more than 3,000 worldwide partners and resellers. For more information, visit the Cognos Web site at www.cognos.com.

Contact Tanya Pobuda of Cognos, 613-738-1440.

Production Access Announces Reaching Strategic Milestones

Production Access Inc (PA), a oil and gas industry market leader in enterprise production operations software, announced that PA has completed several key milestones in its strategic expansion.

In Q2, six oil and gas companies have purchased PA's Operations Center software solution, including Quicksilver Resources, and Matador Petroleum Corporation. "The signing of these industry leaders is clear evidence of how well the Operations Center meets the needs of oil and gas producers in their optimization of production operations," said Tom Bandy, president and CEO of PA. Operations Center allows an oil company to replace the many spreadsheets and separate individual software packages with a single enterprise solution, thereby increasing productivity and allowing for smooth flow of information.

Also, in a strategic move to boost delivery of its consulting and implementation services, PA recently acquired CCI, a Houston-based consulting company with a strong track record of implementing Operations Center and other leading petroleum software packages. "CCI has been our external implementation arm for several years. With this acquisition, CCI's capabilities will now be integrated into our company, allowing us to meet the increasing demand for implementation and training," said Mark Lochmann, Executive vice president and COO of PA.

One of the main reasons leading independents are choosing PA's Operations Center as their enterprise system for production operations is the ability to quickly extract data, identify trends and present information to be used in rapid decision-making. PA's new Data Mining Center allows novice and advanced users alike to sort, select, and graph information without the burden involved in developing complex queries or using report-writing tools. Having access to critical information allows users to prioritize actions by quickly identifying which factors are having the most impact.

Along with the Data Mining Center, PA is also introducing additional capabilities to capture drilling and wellwork data in the field. So far, field personnel either have entered information using handhelds or via a live connection to the main database. Now, PA is offering the Drilling Field Module, an extension to its Drilling and Wellwork Centers, allowing field personnel to capture information on individual laptops for easy transfer to the main database on a daily basis. "Laptops are user-friendly means of capturing data in the field and will contribute to improving the quality of data going into our system. This means that end-users will have higher quality information available to them when making critical decisions," continued Lochmann.

About Production Access Inc

PA provides software and data management products that make oil and gas companies more efficient by bringing together operational information from multiple disciplines. PA's enterprise solution enables users to manage operational data, and produce better decisions throughout the company. Using PA's products, oil and gas operators can gather, organize, and deliver operational information about AFE, drilling, wellwork, production, and asset performance. Production Access Inc is headquartered in Houston. For more information about Production Access products or services, visit www.productionaccess.com, e-mail info@productionaccess.com, fax 281-759-3111, or call 281-759-2002.

RedSheriff Selects Oracle 9i Application Server

Oracle Corp, one of the largest providers of software for e-business, announced that RedSheriff, a leading interactive measurement and research firm, has selected Oracle as the technology platform for its next generation of analysis solutions. RedSheriff licensed the software from Australia Pty Limited, a subsidiary of Oracle Corporation.

"In selecting Oracle technology we gained a comprehensive and elegant software infrastructure to manage our massive data volumes and to deliver the framework for RedSheriff's powerful research platform," said Simon B. Spencer, chief technology officer for RedSheriff. "In addition, Oracle9i Application Server provides flexibility and scalability as an applications development environment, enabling RedSheriff to uniquely tailor its research solutions for each customer while still maintaining product and support scalability."

The RedSheriff Solution

RedSheriff's innovative business intelligence solutions have been developed to enable its clients to capture exactly how visitors are using a broad range of interactive digital content ranging from Web, wireless application protocol (WAP) through to Flash and Shockwave. The company's expertise in the collection and analysis of such data provides its customers with business critical information.

The translation of such complex Internet data into a comprehensible data model requires a database environment that is stable, scalable and easy to manage. RedSheriff has selected the powerful Oracle Database to store this information. Data will be further categorized and analyzed using Oracle's business intelligence capabilities, which includes reporting and data mining.

The business intelligence information will be delivered to RedSheriff's customers via a personalized research portal that is being developed using the portal framework in Oracle9i Application Server (Oracle9iAS). Oracle9iAS provides portal technology that allows any user to build, customize and manage a personalized e-business portal within minutes.

"This collaboration heralds the development of the first device-independent real-time audience measurement and business intelligence platform using data warehousing technologies," added Spencer. "Businesses will be able to come to RedSheriff and receive unparalleled accuracy and detail of information and from a broader range of digital interactive media. This media will include browser, wireless application protocol (WAP), Java devices, i-mode wireless, Flash and Shockwave."

About Oracle

Oracle Corporation provides the software that powers the Internet.

Contact Sally Huchingson, 650-633-8277, or sally.huchingson@oracle.com, of Oracle Corp.