news

INFORMATICA'S ANALYTIC APPLICATIONS
USHER IN NEW CHAPTER FOR B2B E-BUSINESS

Finally a solution for linking and analyzing the performance of customer, partner and supplier relationships across the extended enterprise

New suites target analytic stovepipes that leave many questions unanswered.
Can your e-business survive without access to the "new metrics?"

PALO ALTO, Calif., February 22, 2000 - Informatica Corporation (NASDAQ: INFA), a leading provider of integrated analytic solutions for e-business, today unveiled new software that will take aim at one of the most vexing problems facing B2B (business-to-business) e-businesses - how to integrate and analyze the wealth of customer, partner, supplier and operational information that holds the key to achieving optimal business performance across both online and offline sales channels. Informatica Applicationsä, powered by leading data-integration technology from Informatica that currently fuels some of the world's most advanced business intelligence systems, will let e-businesses for the first time evaluate the performance of their entire e-business value chain of customer, partner and supplier relationships. The result will be a powerful new set of business metrics that will help senior executives across all industries leverage the enormous revenue opportunities represented by a B2B e-business market that is expected to grow, according to Forrester Research, to $1.3 trillion by 2003.

"In the Internet age, the winners in global business will have insight into all key relationships that impact business performance across the extended enterprise," said Gaurav Dhillon, CEO of Informatica. "To attain this, B2B e-businesses must be able to analyze the intricate relationships and inter-dependencies among key customers, suppliers and trading partners; seamlessly integrate online and offline sales channels; and harness the explosion of information captured and processed daily in the numerous systems powering their organizations. Informatica Applications will help deliver all of these capabilities, functioning as the navigation platform for the new B2B e-business economy."

"The challenge in today's business is having an integrated platform that provides a consistent view of the company," said Mark A. Smith, program director for META Group's Application Delivery Strategies. "Businesses must also develop metrics across all channels for which they are measured -- including customer relationship management (CRM), enterprise performance management (EPM), and supply chain management (SCM). An important first step, demonstrated by analytic solution providers such as Informatica, is moving the industry beyond traditional reports and stove-piped information-architecture approaches, to one with integrated analytics across the complete value chain of customer and suppler relationships."

Connecting the Entire B2B e-Business Value Chain
Informatica Applications will debut in a B2B e-business market sorely lacking in robust, industrial-strength solutions for helping companies gain insight into all key relationships and related activities that can determine profitability across both traditional 'brick and mortar' and online sales channels. To date, many software vendors have focused on helping companies better understand and leverage customer relationships, with an emphasis on establishing a one-to-one personalized connection. Senior business managers are beginning to realize that the customer is only one piece of the larger, extended value chain of relationships that today defines the emerging, global e-business. Equally critical are the relationships among and between customers, suppliers, net market makers and key trading partners.

"Point solutions that only address one portion of the e-business value chain cannot deliver the insight necessary to retain and grow a loyal, profitable customer base," said Dhillon. "CRM analytic systems need to be linked to the back office - business operations, procurement and supply chain management systems most notably - so corporate and line-of-business executives can optimize the performance of their business and, in turn, pass along cost savings and personalized services to their customers."

Informatica will deliver this needed capability with Informatica Applications, three integrated suites of analytic applications that for the first time will give e-businesses the ability to evaluate the performance of their entire web of customer, partner and supplier relationships and act upon the results to achieve optimal business performance. Informatica Applications will address the integrated analytic requirements of e-businesses by focusing on the interdependencies among three principle domains--CRM, Business Operations and Procurement--that together make up what Informatica calls the "e-business value chain." Put simply, the e-business value chain is the full range of company business, from procuring materials and hiring employees to manufacturing and distributing goods, products and, perhaps most importantly, customer services.

CRM (Customer Relationship Management) covers systems that enable companies to collect customer, transaction, service and demographic information from internal and external sources for the purpose of effectively acquiring, retaining and servicing loyal, profitable customers. Business Operations cover "back office" applications typically associated with ERP (Enterprise Requirements Planning) systems, including financial planning and forecasting, human resources allocation, enterprise planning and administration. Procurement covers supplier-relationship management and the acquisition, construction and delivery of products and services, and includes e-procurement, materials management, sales order management, logistics, and inventory management.

New Business Metrics For an e-Business World: Now You Know™
Today, thanks to advances in analytic technologies, business managers are able to fine-tune inventory turns, leverage customer buying patterns, reduce manufacturing costs and improve time to market. But surprisingly, business analytics are hard pressed to take the next step, to determine the root cause of a change or problem in one part of their e-business value chain, and assess how that change may trigger multiple reactions in other parts of the value chain. This is
particularly difficult in the world of e-business, or in a "click and mortar" world where
established companies are struggling to integrate and assess the performance of both their offline and online businesses.

For instance, today's analytical software can address such questions as 'what are sales margins, product by product?' or 'which forms of advertising are more effective than others?'. But can this same software tell which suppliers may be responsible for the loss of a top customer, or how a company's top-ten customers might be affected by the two-hour shutdown of a specific production line? Unlikely, for even though many analytic applications track and measure customer contact, customer service, advertising, supply chain and logistics, email direct marketing and general data analysis, only Informatica Applications will integrate all key components of the e-business value chain - CRM, Business Operations and Procurement.

Informatica Applications will be available in the second quarter of 2000

About Informatica
Headquartered in Palo Alto, California, Informatica is a market-leading provider of complete analytic solutions for e-business that enable many of the world's largest companies to integrate data from across their global enterprises--including e-business servers, Web logs, ERP and mainframe systems--and analyze it in order to grow their business. Over 640 major companies across the world in key industries rely on Informatica's analytic solutions, including eBay, Netscape, CNET, Inktomi, Preview Travel, Priceline.com, Morgan Stanley, Merrill Lynch, 3Com, Autodesk, Chevron, Met Life, Mutual of Omaha, Sprint, MCI WorldCom, Deutsche Bank, UBS, Zurich Insurance, Polo Ralph Lauren and Universal Studios. For more information, call 800.970.1179, or visit Informatica's Web site at www.informatica.com.

Statements in this press release which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this release include statements regarding (1) the features, capabilities, functionality and benefits of Informatica Applications and (2) the general availability of Informatica Applications in Q2 '00 and the pricing thereof. Factors that could cause actual results to differ materially include risks and uncertainties such as: unforeseen technical difficulties (including those related to integrating separate applications and functionalities with Informatica's data-integration technology) in developing such features, capabilities, functionality and benefits which could delay or prevent release of the Informatica Applications products or result in Informatica Applications products being released without a certain number of these features, capabilities, functionality or benefits; the failure for a sufficient market to develop for these features, capabilities, functionality or benefits; or any software errors in Informatica's products. Readers should also refer to the risk disclosures outlined in Informatica's Registration Statement on Form S-1 declared effective April 28, 1999 and its quarterly reports on Form 10-Q filed thereafter from time-to-time with the SEC.

Media Contact:

Samantha Moore
Informatica Corporation
(650) 687-6361
smoore@informatica.com