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INTERWORLD AND INFORMATICA FORM STRATEGIC ALLIANCE TO CREATE POWERFUL E-COMMERCE ANALYTICS SOLUTION

InterWorld to bundle Informatica's e-business analytic software to provide single view of the customer through multi-channel data integration

PALO ALTO, Calif., March 20, 2000 - InterWorld Corporation (NASDAQ: INTW) today announced it signed an OEM agreement with Informatica Corp. (NASDQ: INFA), a leading provider of integrated analytic solutions for e-business, to create a bundled solution to help provide businesses with a single view of their customers across all channels in order to enhance customer relationship management (CRM) and maximize their profitability. One of today's front-running e-commerce software vendors, InterWorld plans to integrate Informatica PowerCenter.e™ e-business data-integration software with Commerce Exchange, the company's leading e-commerce software solution.

Informatica PowerCenter.e helps companies integrate large volumes of Web-based transaction and clickstream data with information from industry-leading Enterprise Resource Planning (ERP) systems, relational databases, mainframe systems and external demographic databases. Integrated with InterWorld's high-performance Commerce Exchange solution, PowerCenter.e will help retailers easily access, manage, analyze and share the huge volumes of e-commerce, transactional, content, personalization and click-stream data coming from both traditional and Internet channels as well as front- and back-end systems.

"The old saying, 'knowledge is power' holds true especially for online retail organizations conducting mission-critical activities such as merchandising, one-to-one marketing and customer service. However, knowledge that can be gained from the wealth of data these organizations generate is often lost because retailers are often ill-equipped to translate their data into business intelligence," said Steve Rabin, chief technology officer, InterWorld. "Through its partnership with Informatica, InterWorld aims to bridge this gap for its customers, delivering the right mix of business intelligence and commerce to help them drive greater brand loyalty and revenue."

"The competitive nature of e-commerce is growing more and more fierce, with success in this arena increasingly dependent on the level of service e-businesses provide their customers," said Diaz Nesamoney, president of Informatica. "By helping companies compete and win in today's digital economy, InterWorld is one of the front-running companies today helping e-businesses succeed. We are pleased InterWorld has chosen PowerCenter.e to power its vital e-commerce analytics solution."

Capturing, analyzing and reacting to Web clickstream behavior is not easy, especially when businesses are simultaneously pulling information from transactional, ERP, customer relationship management and POS systems as well as Web logs. Through their partnership, InterWorld and Informatica are aiming to make it easier for businesses to get an accurate view of their customer and supplier data throughout the entire enterprise commerce environment. For example, a business manager can easily correlate an increase in product returns with the amount of time the warehouse has been taking to ship the product. He can then recommend an effective customer service or promotional tactic in the interim to resolve the situation.

The InterWorld-Informatica solution will help companies:

  • Conduct near real-time business analytics with a single view of the customer across all channels including brick-and-mortar, catalog, call center and the Web;
  • Maximize supply chain efficiencies by enabling information sharing up and down the supply chain;
  • Support business-to-business data exchange through support for the Extensible Markup Language (XML) standard;
  • Conduct demographic profiling of customers via Acxiom's Data Network service;
  • Drive and execute efficient marketing campaigns that extend throughout and beyond the Web site. For example, up-sell or cross-sell activities to new and existing customers can be conducted via showcases and dynamic recommendations;
  • Source clickstream data from popular Web servers, such as Microsoft, Netscape, Apache and InterWorld's Web Broker.

The integrated InterWorld-Informatica solution is scheduled to be available on Commerce Exchange 3.1 in the second quarter of 2000.

About InterWorld

InterWorld Corporation (NASDAQ: INTW) is leading the Enterprise Commerce movement that enables businesses to compete and evolve in today's new digital economy. Enterprise Commerce enables businesses to sell to customers online, while maintaining one business strategy across all channels to achieve operational efficiency and earn maximum customer loyalty. With InterWorld's Commerce Exchange solution, manufacturers, distributors and retailers can get to market quickly, scale to meet growing demands, as well as evolve to keep pace with changing market conditions and customer demands. Founded in 1995, InterWorld is headquartered in New York, NY with offices in North America, Europe, and Asia-Pacific. InterWorld can be reached at 1-877-326-6637 or www.interworld.com.

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 barnes&noble.com, eBay, Netscape, CNET, Inktomi, Preview Travel, Priceline.com, Merrill Lynch, 3Com, Autodesk, Chevron, Met Life, Mutual of Omaha, Sprint, MCI WorldCom, Deutsche Bank, UBS, Zurich Insurance and Polo Ralph Lauren. 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 solutions and integrated products to be developed under the partnership between InterWorld and Informatica and (2) the completion and general availability of these solutions and products in the second quarter of 2000. Factors that could cause actual results to differ materially include risks and uncertainties such as: unforeseen technical difficulties (including those related to integrating InterWorld's products with Informatica's products) in developing such features, capabilities, functionality and benefits which could delay or prevent release of these solutions and products or result in them being released without certain of these features, capabilities, functionality or benefits; the failure for a sufficient market to develop for these features, capabilities, functionality or benefits; scheduling and technological factors controlled by InterWorld; or any software errors in our 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.

InterWorld is a registered trademark of InterWorld Corporation. Informatica and PowerCenter.e are trademarks or registered trademarks of Informatica Corporation. All other company, product, and brand names are trademarks of their respective owners.

Media Contact:

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

Chris Faust
InterWorld Corporation
(212) 301-2375
chrisf@interworld.com