NEW ORLEANS--(BUSINESS WIRE)--Feb. 19, 2001--

For Grocery Industry, Retail Revelations(TM) Puts New Efficiencies

and Increased Revenues `In the Bag'

Net Perceptions, Inc (Nasdaq: NETP), an innovator in the development of marketing and merchandising software, today announced at the Food Marketing Institute Marketechnics(R) 2001 show in New Orleans the successful tuning and immediate availability of Retail Revelations(TM) specifically for the retail supermarket industry.

Retail Revelations, a suite of software and services, helps food retailers transform insight into profitable action. Two components of the suite are especially applicable to the supermarket enterprise: Advertising Advisor(TM) and Personalization Manager(TM).

Advertising Advisor increases the revenue return from print circular advertising for the merchandising and promotion of products stocked in the physical store. By analyzing historic point-of-sale data, Advertising Advisor identifies what promotions work and how well

• including which items drive the greatest add-on purchases. Most importantly, it provides a unique, dynamic simulation ability that allows marketers, using vast amounts of data, to test various scenarios in seconds and create prescriptions for the most profitable action to take. It actually recommends what to advertise to drive higher overall sales, increase traffic, optimize margins and reduce printing costs - benefits that are realized at the store, region and chain levels.

Since its introduction in April 2000, Advertising Advisor has enjoyed deployment among such top-50 U.S. retailers as Eckerd, Kmart, JCPenney, and Best Buy - all of which rely heavily on print advertising circulars.

Personalization Manager is designed for food retailers that offer customers an on-line way to shop. It combines Net Perceptions' award-winning, real-time e-commerce personalization technology with business rule-building capabilities to make sure that a customer's on-line experience is the best it can be while essential business controls are maintained. Customer loyalty is enhanced and store brand is reinforced. Customers of Net Perceptions e-commerce products include such top retailers as U.K.-based grocer Tesco, williams-sonoma.com, bestbuy.com and jcpenney.com.

"Net Perceptions designed the components of Retail Revelations to make measurable impacts specific to retailing," said Steve VanTassel, Net Perceptions vice president and general manager, Commerce Solutions. "For most large food retailing chains, print circular advertising represents the lion's share of the marketing budget and the lifeblood of store traffic. Advertising Advisor has demonstrated its ability to take the traditionally ad hoc process of determining which products to feature, at what price, and make it an efficient, profit-oriented science. And as the Internet gains importance as a venue for day-to-day business and boosting customer loyalty, Personalization Manager is uniquely positioned to optimize that channel's value."

The press to invest in technology to capitalize on available data and still maintain customer focus is clear. As AMR Research Senior Analyst Randy Covill puts it: "Retailers need to integrate their demand chain, enterprise, and supply chain strategies to assume the trusted advisor role in partnership with manufacturers and manufacturer's brands. Otherwise, the retailer may see its store brand or promise to consumers undermined by manufacturers who can better position their brands with consumers."

About Net Perceptions

Net Perceptions, a leading provider of precision merchandising and personalization software through Retail Revelations, is the innovator and preeminent supplier of software solutions that allow companies to translate knowledge into profitable business action. Its Commerce Solutions and Knowledge Solutions products enable companies to capitalize on business information and optimize product assortments, pricing, customer relationships and intellectual capital. Customers include Best Buy, Dean & Deluca, Eckerd, Kmart, Kraft Foods, JC Penney and Walgreens. The company is based in the U.S. and has offices in four other countries. For more information visit www.netperceptions.com or call 800-466-0711.

Net Perceptions and Net Perceptions logo are registered trademarks of Net Perceptions, Inc. All other trademarks are the property of their respective owners. This news release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the company's limited operating history, delays in product development, development of the Internet market, changes in product pricing policies, competitive pressures, and the risk factors detailed from time to time in the company's periodic reports and registration statements filed with the Securities and Exchange Commission.

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