Businesses Generating Over 25% Return on Investment via Inbound Customer Marketing

Epiphany, Inc. (NASDAQ:EPNY), a leading provider of customerrelationship management (CRM) solutions for consumer-orientedbusinesses, and Capgemini, one of the world's foremost providersconsulting, technology and outsourcing services, today released theresults of an industry survey showing that Inbound Customer Marketing(ICM) generates a healthy return on investment for those companiesthat have deployed it, with more than 44 percent of companies surveyedachieving greater than 25 percent ROI on their implementations.

Inbound Customer Marketing is the practice of offering a customera product or service when the customer has initiated the contactthrough an inbound channel, such as the call center, Web or branchnetwork. Sophisticated approaches to ICM, such as real-time marketing,use real-time learning algorithms and predictive modelling of customerbehaviors to determine the best offer to make to an individualcustomer at that point in time.

Steven Harris, Head of Insight Driven Marketing Consulting atCapgemini, said: "When customers initiate contact with anorganization, they are willingly giving their time, attention andpermission for that contact. Not only can the customer's request bedealt with, but this is also an ideal opportunity to give a specificmessage or offer targeted to each customer. Customer-orientedcompanies, such as telcos, are leading the way in Inbound CustomerMarketing."

Nikolas Badminton, Head of Marketing Intelligence Delivery,Capgemini, added, "The organizations we found that were achieving thebest results from ICM ensure that there is tight integration ofcustomer data and technical processes for call center, web and retailchannels. It is this integration that ensures they continually designoffers which are most relevant to each of their customers."

"As the leader in providing inbound and outbound customermarketing solutions, Epiphany understands the specific strategiesbusinesses need to put in place for intelligent customerinteractions," said Andy McEwan, vice president, EMEA, Epiphany."Industry best practices, such as using real-time analytics, customersegmentation, multi-channel campaign management, and real-timeinteraction optimization, will enable the largest enterprises tocreate and build long-term, profitable relationships with customers."

Survey Background and Key Findings

Capgemini and Epiphany commissioned research to understand whatkinds of companies have implemented Inbound Customer Marketing, and todetermine the level of sophistication and success of each deployment.The survey interviewed the heads of Marketing, CRM and Call Centeroperations at more than 50 Fortune 500 enterprises in the UK & Irelandacross the financial services, telecommunications & media, insurance,and travel & leisure sectors in April 2005. Key findings include:

-- ICM varies in sophistication from "offer of the day" to use of
real-time learning algorithms

-- Return on ICM investment is high, with travel companies and
telecommunication firms leading the way

-- Inbound marketing channels can deliver up to thirty times the
campaign conversion rate of traditional outbound direct mail

-- The call center and Web have been the channels of choice for
ICM deployment, with the Web the major channel for continued
development

-- People channels, such as the call center and branch, are
better for retention offers and electronic channels, such as
the Web, are better for cross-sell and up-sell offers

-- The best performing companies use real-time learning
algorithms (generally in conjunction with predictive
modelling) for ICM, consistently achieving up to 50 percent
sales conversion rates on cross-sell, up-sell and retention
offers.

Additionally, there were several key findings for each vertical
industry market surveyed:

-- Telecommunications & Media: This sector was found to be well
ahead of the curve across all channels. Telecommunications
providers are seen as pioneers of real-time marketing and are
generally generating strong results:

-- No companies in the sector had less than 15 percent ROI;
60 percent of companies realised ROI of more than 25
percent

-- 88 percent adoption of ICM in the call center (highest in
all sectors), also highest with 50 percent adoption in
branch network

-- 50 percent adoption of real-time marketing in call centers
(highest in all sectors), also highest (38 percent) on the
Web channel.

-- Retail Banking: Financial services companies were early ICM
innovators, through prompting systems, but have been surpassed
by the travel & leisure and telecommunications & media
sectors:

-- Highest usage of ICM in branches (47 percent vs. survey
average of 27 percent).

-- Insurance: This sector lagged behind in terms of
sophistication and performance, but a couple of early adopters
have generated some success:

-- Only 14 percent of insurers are generating ROI greater
than 25 percent (compared with 44 percent across all
sectors)

-- 33 percent adoption of ICM in the call center and Web.

-- Travel & Leisure: Companies in this sector are ahead of their
peers in other industries, particularly on the Web:

-- 80 percent of travel & leisure companies had ROI greater
than 25 percent. No companies in this sector had ROI of
less than 15 percent

-- 67 percent are using the Web for ICM -- the highest in all
sectors.

A summary of the findings and the report can be found at:http://www.epiphany.com/united_kingdom/icmreporthttp://www.capgemini.com/resources/thought_leadership/inbound_customer_marketing_research_report/ (Due to its length, thisURL may need to be copied/pasted into your Internet browser's addressfield. Remove the extra space if one exists.)

About the Capgemini Group

Capgemini, one of the world's foremost providers of Consulting,Technology and Outsourcing services, has a unique way of working withits clients, which it calls the Collaborative Business Experience.Through commitment to mutual success and the achievement of tangiblevalue, the company helps businesses implement growth strategies,leverage technology, and thrive through the power of collaboration.Capgemini employs approximately 60,000 people worldwide and reported2004 global revenues of 6.3 billion euros.

More information about individual service lines, offices andresearch is available at www.capgemini.com.

About Epiphany

Epiphany(R) provides CRM software solutions that increaseprofitability at the largest consumer-oriented companies by makingevery customer interaction intelligent. With over 475 customers --including nearly 35 percent of the Fortune 100 -- Epiphany powers deepcustomer insights and optimises each relationship from both a revenuegeneration and customer retention viewpoint. Built on the industry'smost advanced, service-oriented architecture, Epiphany softwaresolutions address problems that span business silos, departmentalfunctions and geographic locations, and result in rapid, measurableROI. With a suite of blended marketing, sales and service solutions,Epiphany enables global organisations to align touchpoints, processesand technologies around the most valuable enterprise asset -- thecustomer. With worldwide headquarters in San Mateo, CA, Epiphanyserves customers in more than 40 countries worldwide. For moreinformation please visit www.epiphany.com.

Epiphany Safe Harbor Statement

This press release contains forward-looking statements relating tofuture results that may be achieved by customers using the Epiphany E6software product and future sales opportunities. Actual results coulddiffer materially from such forward-looking statements. Factors thatcould cause actual results to differ materially from theforward-looking statements include customers' individual purchasingdecisions, competition and the introduction of new products andservices by competitors, our ability to hire and retain qualifiedpersonnel, and general economic conditions. These factors and othersare described in more detail in Epiphany's public reports filed withthe Securities and Exchange Commission, such as those discussed in the"Risk Factors" section included in the Epiphany's Annual Report onForm 10-K, Quarterly Reports on Form 10-Q and in the Epiphany's priorpress releases. Epiphany assumes no duty to update any statements madein this press release.

Epiphany and the Epiphany logo are registered trademarks ofEpiphany, Inc in the United States and other jurisdictions. All othertrademarks are the property of their respective owners.