eGain's New Conversational Agent Learns Faster, Handles Hundreds of Simultaneous Sessions from a Single PC

eGain Assistant 5.0 Automates 90% of Content Conversion; Companies Can Build 1000 Cases a Day & Quickly Deploy a Virtual Agent

SUNNYVALE, Calif, February 13, 2002 --eGain Communications Corporation (NASDAQ:EGAIN), a global provider of eService software, today announced the release of eGain Assistant 5.0, an advanced conversational agent that can help Web site visitors solve a problem, find what theyre looking for or even complete an online retail sale -- all via typed exchanges in natural conversational English.

The new virtual agent learns faster and more efficiently than its predecessors, automatically converting existing knowledge -- typically in the form of Frequently Answered Questions (FAQs) -- into the cases" in its knowledge base with a success rate of 90%, nearly double the previous rate. (A case is a set of questions such as Do you accept credit cards?" Which credit cards do you take?" and the like, for which there is a unique answer, such as We accept VISA, MasterCard and American Express.")

As with previous versions of eGain Assistant, the assistant brings a level of emotional intelligence to the interaction, which is typically missing on the web. This emotional interaction facilitates surveying customers and reinforces companies on-live brand position on the typically faceless web.

By maximizing automation and minimizing the need for manual case-building, eGain Assistant 5.0 is capable of creating over one thousand cases per day, a process that can take weeks to complete with competing solutions.

Case-building is aided by Assistant 5.0s greatly expanded dictionary of 30,000 words, which now includes basic retail terminology. This larger vocabulary also enables a more colloquial style of conversation with site visitors.

Assistant 5.0 also has significant performance and scalability enhancements. Under typical conditions, it is capable of handling over one thousand simultaneous conversations on a single PC. Furthermore, it can be deployed over multiple servers for essentially unlimited expandability. If any given server should fail in a multiple server configuration, Assistant 5.0 can transfer conversations to another server with no loss of context, and therefore no memory lapse" or interruption of the dialogue.

Assistant 5.0 comes with over forty standard reports for analyzing log files. Results are delivered in a matter of seconds, and can be sorted by case name, response, most frequently invoked cases, most frequently missed questions, as well as numerous other ways.

Assistant 5.0 is available as a stand-alone product or as a tightly-integrated module of eGain eService Enterprise (E3), the companys comprehensive solution for managing multi-channel customer communications. As an eGain eService Enterprise module, eGain Assistant 5.0 can escalate a conversation to an automated e-mail management system via eGain Mail or to the appropriate live assistant via eGain Live, preserving a transcript of all interactions to that moment.

About eGain Communications Corporation

eGain (NASDAQ: EGAN) is a leading provider of eService software. Selected by 24 of the 50 largest global companies to improve phone and Web-based customer service, eGain solutions increase service efficiency and customer retention - thus delivering a significant return on investment (ROI). eGain eService Enterprise - the company's integrated software suite - includes applications for email management, Web collaboration and self-service, and enterprise-wide knowledge management. eGain has an operating presence in 18 countries and serves more than 800 enterprise customers worldwide - including Vodafone, DaimlerChrysler, and ABN AMRO Bank. To learn more about eGain, please visit http://www.eGain.com or call the company's offices - United States: (888) 603-4246; London: +44 (0) 1753 464646; or Sydney: +612 9492 5400.

Cautionary Note Regarding Forward-looking Statements: All statements in this release that involve eGains plans, forecasts, beliefs, projections, expectations, strategies and intentions are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on information available to eGain at the time of this release, are not guarantees of future results; rather, they are subject to risks and uncertainties that may cause actual results to differ materially from those set forth in this release. These risks and uncertainties include, but are not limited to, the anticipated customer benefits from eGain products, successfully integrating Inference Corporation into our product and business activities, increased competition and technological changes in the market in which eGain competes, our ability to manage growth, intense competition for qualified employees, and other risks detailed from time to time in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed on September 28, 2000, and our quarterly reports on Form 10-Q. eGain assumes no obligation to update these forward-looking statements.

Note: eGain is a registered trademark, and eGain Mail, eGain Live, eGain Voice, eGain Campaign, eGain Inform, eGain Assistant and eGain Hosted Network are trademarks, of eGain Communications Corporation. All other company names and products are trademarks or registered trademarks of their respective owners.

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eGain Media Contact: Anne Carr, eGain Communications Corp., 408-331-7721, acarr@eGain.com