Marketswitch® Achieves Record Fourth Quarter and Year-End Results; Bucks Downward Trend in Software Technology Market Marketswitch revenue up over 440%in 2002

Rapidly growing interest in Marketing Optimization technology launched Marketswitch into profitability in early 2002, and the trend has continued with Marketswitch being profitable in each quarter of 2002. 2003 looks to be another banner year as interest continues to grow for Marketswitch and Marketing Optimization.

DULLES, Va., January 31, 2003 -- Marketswitch Corporation, the leading provider of high-scale real-time optimization decisioning software for B2C enterprises, today announced that it generated record profitability and cash flow in the fourth fiscal quarter and year ended December 31, 2002. The company achieved profitability in all four quarters of 2002.

In the fourth quarter, Marketswitch expanded its relationships with several existing financial services and telecommunications customers, including signing a perpetual license for enterprise marketing decisioning with one of the nations top ten credit card issuers. Marketswitch also increased its base of telecommunications customers, adding a leading European wirefree communications services company to its client roster.

Fourth quarter revenues were 120% of plan and total 2002 revenues were 168% of the companys forecast. On a year-over-year basis, revenues increased by more than 440%, the average sales price grew by 272% and liquid assets rose 159%. Geographically, the companys international (non US) business jumped 518%. Other financial success measures, including operating income, operating margin and operating profit per employee, improved similarly.

We are very pleased that Marketswitch has thrived despite the widely recognized negative business environment, said Drew Eginton, Chairman, CEO and President of Marketswitch Corporation. Our financial success signals something more important. In 2002, we outsold companies, large and small, public and private, in license revenue for high-scale B2C optimization. A lot of people use the O"- word, but most of them are delivering consulting projects, or offering something else they cant burn onto a CD Rom. They cant ship the intellectual property -- because they dont have it. Its classic vaporware. We invented it, and we ship it, and our customers -- many of the smartest companies in the world -- know that. Thats why our customers return for more while others look for their first. One customer, a Fortune 100 financial services corporation, executed three distinct major licenses for Marketswitch optimization in less than thirteen months. That is not a common event in this technology downdraft."

The Marketswitch TRUE SuiteTM consists of marketing, pricing and revenue optimization software applications that utilize true optimization mathematics to maximize profit (or other objective, user-defined business goal) while satisfying real-world business constraints and objectives. Marketswitch's originally developed, patented mathematical solution for constrained optimization brings yield management strategies - such as those that transformed investment portfolio management and airline revenue management - to organizations with millions of customers, hundreds of offers, and a mix of real-time and off-line channels. Marketswitch offers the only solution that can perform true real-time decisioning via the web, inbound call center and other interactive customer touchpoints. The solution set is two generations and several years ahead of historical approaches and current consulting-based offerings, which rely on averaging across large customer segments and business rules, leading to sub-optimal use of capital resources and lost value. This historical sub-optimization is unlocked by Marketswitchs optimization applications which identify and capture performance improvements of 20-200+% from a companys existing assets - one reason why some of the world's leading corporations such as Capital One, Discover Financial Services, Wells Fargo, Royal Bank of Scotland, Abbey National, and Vodafone Sweden have selected Marketswitch software for their customer-level business decisioning processes.

About Marketswitch
Founded in 1997, Marketswitch designs, develops, and sells decisioning software applications that maximize the value of every dollar spent on customers and prospects. Marketswitch first applied its customer-level optimization technology to marketing optimization and has expanded into risk management, collections, pricing and revenue optimization. The Marketswitch TRUE Suite of outbound and real-time optimization software products dynamically determines the right offer at the right price for the right customer through the right channel at the right time in batch or real-time. It does this while simultaneously satisfying real-world business constraints (such as limited budget, minimum sales, risk tolerance, or eligibility requirements) and meeting customer needs. As the international sole source for customer-level marketing, pricing and revenue optimization software applications, Marketswitch TRUE Suite products are used in diverse industries such as financial services, communications, retail, and eCommerce by the worlds leading corporations, including Capital One, Discover Financial Services, Wells Fargo, the Royal Bank of Scotland, Abbey National and Vodafone Sweden. Marketswitch also has a joint venture in Japan, Marketswitch Japan KK, with Trans Cosmos, Inc. that provides customer-level optimization software products to the Japanese market. For more information, please visit www.marketswitch.com or call 1-877-678-4640.

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Marketswitch is a registered trademark of Marketswitch Corporation. TRUE Suite, TRUE for Call Centers, TRUE for eCommerce, TRUE for Web Advertising, TRUE for Outbound Marketing, TRUE for Transactional Modeling, TRUE for Credit Optimization and TRUE for Collections Optimization are trademarks of Marketswitch Corporation. All corporate and product references appearing herein may be trademarks or registered trademarks of their respective holders.

Marketswitch Corporation
108 Powers Court
Dulles, VA 20166 USA
www.marketswitch.com