LANDMARK CRM SURVEY OF SMALL AND MID-SIZED FINANCIAL INSTITUTIONS

Small and mid-sized financial institutions continue to look for affordable and easy-to-use customer relationship management (CRM) solutions according to the latest research commissioned by SEDONA® Corporation (Nasdaq: SDNA) (http://www.sedonacorp.com). CRM is clearly one of the most lucrative technology markets, as evidenced by a recent BusinessWeek article that stated, The market for customer-management software tailored for small and mid-sized businesses is expected to double this year to $173 million (Jupiter Research)...Only 3% of these smaller companies already have this software." Analysts such as Gartner Group also suggest in their research reports that CRM solution providers in the small to mid-sized space must continue to be more verticalized to effectively compete. This new research survey confirms these observations.

LANDMARK CRM SURVEY OF SMALL AND
MID-SIZED FINANCIAL INSTITUTIONS

Findings Highlight Need for Affordable, Intuitive CRM Functionality

KING OF PRUSSIA, Pa., April 30, 2002 -- Small and mid-sized financial institutions continue to look for affordable and easy-to-use customer relationship management (CRM) solutions according to the latest research commissioned by SEDONA® Corporation (Nasdaq: SDNA) (http://www.sedonacorp.com). CRM is clearly one of the most lucrative technology markets, as evidenced by a recent BusinessWeek article that stated, The market for customer-management software tailored for small and mid-sized businesses is expected to double this year to $173 million (Jupiter Research)...Only 3% of these smaller companies already have this software." Analysts such as Gartner Group also suggest in their research reports that CRM solution providers in the small to mid-sized space must continue to be more verticalized to effectively compete. This new research survey confirms these observations.

The survey consisted of 77 in-depth telephone interviews with small and mid-sized financial services companies. The companies surveyed include current users of customer relationship management (CRM) solutions, non-users of CRM systems, and companies embarking on a CRM initiative.

Survey results reveal that although financial services companies have a plethora of high-tech information gathering tools available, the majority (62%) of them believe that teller transactions are the primary means of collecting customer data. Interestingly enough, those companies using a CRM solution reported this more strongly than those without (74% versus 57%). Other collection methods include telephone transactions, ATM transactions, Web-collected data, e-mail, and purchased data.

The survey also reveals that the majority (93%) of financial services firms organize their businesses around product and service lines as opposed to demographically based customer segments (47%). Furthermore, of those with a CRM solution already implemented, nearly 70% rely on the additional method of profitability analysis to determine their likelihood of future success. Although customer retention ranks high across the board (92%), gauging customer profitability to evaluate success isnt far behind with 55% of institutions (70% CRM users and 48% non-users) stating that customer profitability is a major factor when making marketing and business development decisions.

While the survey provides many parallels to other research on CRM in financial services companies done a year ago by Peppers and Rogers, the SEDONA survey completely focused on small and mid-sized institutions. The biggest difference in the findings highlighted that the majority of small and mid-sized financial institutions who are not using a Customer Relationship Management (CRM) system identify cost and the need for additional resources as the major barriers preventing them from implementing a CRM strategy. According to the survey results, 35% of the respondents without CRM identify the price tag as the single major barrier preventing their financial institution from implementing a CRM strategy, while nearly 15 percent pinpoint staffing limitations. Other hindrances respondents note were inappropriate timing, lack of management commitment, or complexity of data conversion.

Alyssa Dver, VP and Chief Marketing Officer of SEDONA Corporation, commented, CRM needs to work as part of a bank or credit unions daily routine operation where it doesnt require special resources or large efforts of the institutions existing personnel. Customers want to have CRM completed integrated with their other information systems and they want the CRM capabilities to be easily used by the entire organization. As weve seen already in the financial services industry, core processors are responding rapidly to this need by integrating CRM technology such as Intarsia from SEDONA, right into their core banking systems. We expect this trend to continue as customers are increasingly demanding verticalized, affordable and comprehensive CRM solutions."

About SEDONA® Corporation
SEDONAÒ Corporation (Nasdaq: SDNA) is the leading provider of Customer Relationship Management (CRM) solutions for small and mid-sized financial services companies. SEDONAs Web-based software, IntarsiaTM, employs leading-edge CRM technology that enables financial institutions to create a 360-degree view of customers and their interactions by consolidating customer information across departments, products lines, and channels. Organizations can capitalize on information captured during each customer interaction to effectively cross-sell and up-sell products and services, resulting in maximized profitability through increased customer retention. Through a network of highly respected channel and technology partners, SEDONA provides the most comprehensive CRM offering in the financial services market. SEDONA has been chosen by such market leaders as Fiserv, Inc., Financial Services, Inc. (FSI), and Sanchez Computer Associates, Inc. and is an Advanced Level Business Partner of IBM Corporation. For additional information, visit the SEDONA Web site at www.sedonacorp.com or call 1-800-815-3307.

About Intarsia
SEDONAs IntarsiaÔ is a comprehensive Web-based CRM solution that helps aggregate silos of information to provide a single, consistent source for customer information. The system includes all the data analysis functionality of traditional MCIF technology such as profitability analysis, householding, and visual profiling. Significantly beyond an MCIF, Intarsia pushes information out to the organization allowing the people to make informed customer-centric decisions on the front lines as well as in the back office. Accessed via a standard Internet browser, Intarsia can help track customer requests and issues to ensure follow-up and the ability to measure the results in developing a sales culture and improving employee productivity. Intarsia was specifically designed and priced to meet the needs of small to mid-sized financial services organizations in their efforts to identify, acquire, foster, and retain loyal, profitable customers.

# # #

Forward Looking Statements
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes" "anticipates" "plans" or "expects" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

SEDONAÒ is a registered trademark and IntarsiaÔ is a trademark of SEDONA Corporation. All other trade names are the property of their respective owners.

This press release and prior releases are available on the SEDONA Corporation Web site at www.sedonacorp.com.

INVESTOR CONTACT:
Steve Ficyk
(330) 220-4051
stevef@sedonacorp.com

MEDIA CONTACT:
Meira Primes
781) 793-8930
mprimes@attbi.com