Xchange, Inc. and Carreker, Longtime Leaders in Technology and Consulting at World's Top Banks, Partner to Multiply Their Impact on Client's Profitability

Carreker is Named Reseller of Xchange EnAct to the Banking Industry



Marketing Agreement will Showcase the Xchange 7 CRM Suite to

Banks Around World



Apr 03, 2001, 01:00 ET from Xchange, Inc.

    BOSTON, April 3 /PRNewswire/ -- Xchange(TM), Inc. (Nasdaq:   EXAP), which
 specializes in converting customer relationships into profit, and
 Carreker Corporation, (Nasdaq:   CANI) a leading provider of e-finance enabling
 solutions for the financial industry, announced an alliance that makes
 Carreker the exclusive provider of Xchange EnAct to the banking industry.  In
 addition, Carreker and Xchange have entered into a marketing agreement for
 Xchange 7.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000705/XCHANLOGO )
     Xchange 7 enables companies to focus their resources on customers who
 represent the highest potential value, and then drive customer interactions
 consistently across every customer channel, to increase the profitability of
 its customer base.  Xchange EnAct, one of five components included in
 Xchange 7, is the industry's only customer relationship management (CRM)
 software and methodology that brings a profit-focused discipline to front-line
 employees by enabling them to use customer information and technology to grow
 customer value.  Many Xchange EnAct clients report increasing the
 profitability of targeted customer income streams by 10 to 20 percent in six
 months.
     Carreker's Revenue Enhancement solution is a rigorous process that
 identifies and validates opportunities to increase bank revenue.  Carreker's
 clients already realize $1 million in sustainable earnings improvements per
 $1 billion in client assets (typically one-half revenue-related and one-half
 expense-related).  The company has long-term consulting relationships with
 19 of the top 20 banks in the U.S. and has 170 leading financial institutions
 around the world as clients.
     As part of the reseller agreement, Robert Hall, general manager of the
 Enact Business Unit at Xchange, will join Carreker to continue working with
 Xchange EnAct within the banking industry.  He will continue to serve in an
 advisory role to Xchange, Inc.
     "This is a good deal for us, that secures the majority of expected revenue
 from this product line for the year while allowing us to boost our cash flow,"
 said Andy Frawley, chairman and CEO of Xchange.  "In Carreker, Xchange finds a
 powerful partner for banking.  We have each been driving a measurable ROI for
 our banking clients, and we expect that when banks implement our solutions
 together that ROI will multiply.  Carreker's relationships at the highest
 levels of many of the world's most established financial institutions, and our
 highly skilled EnAct specialists working alongside of their experts, will
 truly showcase the value of our solutions together to market," he said.
     "EnAct is not only a tremendous solution for banks seeking to improve
 their customer value, it is a perfect complement to what we already do, and we
 see it more than doubling the value we already bring our clients.  Robert and
 I have known each other for twenty years, working in parallel at many of the
 same financial institutions.  As banks increasingly focus on enhancing their
 revenue streams, our value propositions have dovetailed to the point that this
 alliance is an obvious and exciting move," said J. D. "Denny" Carreker,
 Chairman and Chief Executive Officer of Carreker Corporation.
     Robert Hall said, "Carreker's business model -- a tremendous amount of
 intellectual capital, wrapped in a rigorous methodology, and delivered with
 enabling technology -- matches Xchange's.  With EnAct, banks quickly increase
 the value of their customers at the front line.  Their remaining challenges --
 how to quantify and measure the change and sustain it at the executive
 level -- are where Carreker excels.  By bringing our people together and
 leveraging EnAct technology, we can deeply enrich each other's solutions and
 the value we bring clients."
     Between Carreker's Revenue Enhancement and EnAct, the alliance brings
 banks a combined value proposition already proven separately at scores of
 banks around the world.  Using both companies' solutions together, banks will
 be able to execute policy changes identified by Carreker to grow revenue, via
 the training, technology and methodology offered by Xchange.  For example,
 when Carreker finds that adjusting parameters for one of a bank's customer
 segments will significantly grow revenue, Xchange EnAct will train a bank's
 personnel to carry out the policy changes systematically at the local level
 using best practices.  At the same time Xchange Real Time, a component of
 Xchange 7, will deliver the same policy changes to every other interaction
 channel (such as the call center or web site), and help the bank to
 consistently implement the action most likely to drive each customer to more
 profitable behavior.
     In addition to supporting Carreker's efforts, Xchange will focus the
 resources of its EnAct business group on penetrating additional high growth
 vertical industries, including retail, insurance, telecommunications and
 automotive, where the company believes Xchange EnAct will dramatically improve
 the value and profitability of interactions between front line personnel and
 customers.
     According to Kimberly Collins, senior research analyst for Gartner, "Many
 organizations in industries outside of financial services have also been
 plagued by the inability to align their centralized marketing campaigns with
 their local sales initiatives.  The result is often inconsistent product and
 service offerings to customers which erodes customer satisfaction and loyalty.
 Technology solutions that enable companies to leverage their back office
 information effectively at the local level are much needed in many industries
 but have been generally lacking in the vendor market," said Collins.
 
     About Carreker:
     Carreker, headquartered in Dallas, Texas, is a leading provider of
 integrated consulting and software solutions that enable banks to identify and
 implement e-finance solutions, increase their revenues, reduce their costs and
 enhance their delivery of customer services.  Carreker's e-finance solutions
 use leading-edge technologies to create practical applications for banks and
 their customers.  The Company believes that its 22 years of experience in the
 banking industry, combined with a professional staff and advanced
 technological expertise, allow for customized solutions for banks and other
 financial institutions.  Carreker offerings fall into four groups: Revenue
 Enhancement, which increases banks' revenues through market segmentation and
 improved customer pricing structures; Payment Solutions, which assists banks
 in transitioning from paper to electronic-based payment systems and minimizing
 payment processing expenses; Enterprise Solutions, which integrates systems,
 combines operations and improves workflows and internal operational processes;
 and Cash Solutions, which optimizes inventory management of a bank's
 cash-on-hand, including management of how much cash is needed, when it is
 needed and where it is needed.  Carreker's customer list includes more than
 200 financial institutions in the United States, Canada, the United Kingdom,
 Ireland and Australia, including 70 of the largest 100 banks in the United
 States.  For more information please visit the website at
 http://www.carreker.com .
 
     About Xchange, Inc.
     Exchange Applications, Inc., now doing business as Xchange, Inc., helps
 companies focus their resources on customers who represent the best long-term
 profitability.  Xchange delivers results by instilling a profit-focused
 discipline in the organization, coordinating all touch points and creating a
 personalized dialogue with the most valuable customers.  These solutions are
 impacting the bottom line at approximately 275 client sites worldwide,
 including Citigroup, DaimlerChrysler and Vodafone.  Xchange is based in Boston
 with offices worldwide.  For more information, visit http://www.xchange.com .
     Xchange, Xchange Analytics, Xchange Campaign, Xchange eMessaging and
 Customer Value Management are trademarks of Exchange Applications, Inc.  All
 other trademarks contained herein are the property of their respective owners.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995: In addition to historical information contained herein, this news
 release contains forward-looking statements that involve risks and
 uncertainties, including the statements relating to current expectations for
 current and future periods.  The Company's actual results could differ
 materially from those discussed in such forward-looking statements, based on a
 variety of factors, including the adequacy of estimated expense accruals and
 reserves and the effect of the expansion of the Company's business on its
 operating cash flow; as well as factors affecting future performance,
 including the fact that the Company's markets are characterized by rapidly
 changing technology, evolving industry standards and frequent introductions of
 new products and enhancements; the fact that the market for customer
 optimization software is new and emerging; the fact that the Company relies
 heavily on indirect distribution channels for sales of its software; the
 unpredictability of the timing of customer orders; a highly competitive market
 for the Company's products and the unpredictability of whether its solutions
 will be accepted by new customers; the fact that the Company relies heavily on
 growth from international operations; the Company's ability to attract and
 retain skilled personnel; whether the Company will be able to efficiently
 integrate acquisitions; and the Company's ability to raise additional capital
 in volatile capital markets, in particular given its current operating losses.
 Additional information concerning factors that could cause actual results to
 differ materially from those in the forward-looking statements is contained
 from time to time in the company's filings with the Securities and Exchange
 Commission, including but not limited to the company's Quarterly Report on
 Form 10-Q filed, November 14, 2000 and recent registration statements filings
 on Form S-3.  The Company disclaims any obligation to update these statements
 for subsequent developments.
 
 

SOURCE Xchange, Inc.
    BOSTON, April 3 /PRNewswire/ -- Xchange(TM), Inc. (Nasdaq:   EXAP), which
 specializes in converting customer relationships into profit, and
 Carreker Corporation, (Nasdaq:   CANI) a leading provider of e-finance enabling
 solutions for the financial industry, announced an alliance that makes
 Carreker the exclusive provider of Xchange EnAct to the banking industry.  In
 addition, Carreker and Xchange have entered into a marketing agreement for
 Xchange 7.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000705/XCHANLOGO )
     Xchange 7 enables companies to focus their resources on customers who
 represent the highest potential value, and then drive customer interactions
 consistently across every customer channel, to increase the profitability of
 its customer base.  Xchange EnAct, one of five components included in
 Xchange 7, is the industry's only customer relationship management (CRM)
 software and methodology that brings a profit-focused discipline to front-line
 employees by enabling them to use customer information and technology to grow
 customer value.  Many Xchange EnAct clients report increasing the
 profitability of targeted customer income streams by 10 to 20 percent in six
 months.
     Carreker's Revenue Enhancement solution is a rigorous process that
 identifies and validates opportunities to increase bank revenue.  Carreker's
 clients already realize $1 million in sustainable earnings improvements per
 $1 billion in client assets (typically one-half revenue-related and one-half
 expense-related).  The company has long-term consulting relationships with
 19 of the top 20 banks in the U.S. and has 170 leading financial institutions
 around the world as clients.
     As part of the reseller agreement, Robert Hall, general manager of the
 Enact Business Unit at Xchange, will join Carreker to continue working with
 Xchange EnAct within the banking industry.  He will continue to serve in an
 advisory role to Xchange, Inc.
     "This is a good deal for us, that secures the majority of expected revenue
 from this product line for the year while allowing us to boost our cash flow,"
 said Andy Frawley, chairman and CEO of Xchange.  "In Carreker, Xchange finds a
 powerful partner for banking.  We have each been driving a measurable ROI for
 our banking clients, and we expect that when banks implement our solutions
 together that ROI will multiply.  Carreker's relationships at the highest
 levels of many of the world's most established financial institutions, and our
 highly skilled EnAct specialists working alongside of their experts, will
 truly showcase the value of our solutions together to market," he said.
     "EnAct is not only a tremendous solution for banks seeking to improve
 their customer value, it is a perfect complement to what we already do, and we
 see it more than doubling the value we already bring our clients.  Robert and
 I have known each other for twenty years, working in parallel at many of the
 same financial institutions.  As banks increasingly focus on enhancing their
 revenue streams, our value propositions have dovetailed to the point that this
 alliance is an obvious and exciting move," said J. D. "Denny" Carreker,
 Chairman and Chief Executive Officer of Carreker Corporation.
     Robert Hall said, "Carreker's business model -- a tremendous amount of
 intellectual capital, wrapped in a rigorous methodology, and delivered with
 enabling technology -- matches Xchange's.  With EnAct, banks quickly increase
 the value of their customers at the front line.  Their remaining challenges --
 how to quantify and measure the change and sustain it at the executive
 level -- are where Carreker excels.  By bringing our people together and
 leveraging EnAct technology, we can deeply enrich each other's solutions and
 the value we bring clients."
     Between Carreker's Revenue Enhancement and EnAct, the alliance brings
 banks a combined value proposition already proven separately at scores of
 banks around the world.  Using both companies' solutions together, banks will
 be able to execute policy changes identified by Carreker to grow revenue, via
 the training, technology and methodology offered by Xchange.  For example,
 when Carreker finds that adjusting parameters for one of a bank's customer
 segments will significantly grow revenue, Xchange EnAct will train a bank's
 personnel to carry out the policy changes systematically at the local level
 using best practices.  At the same time Xchange Real Time, a component of
 Xchange 7, will deliver the same policy changes to every other interaction
 channel (such as the call center or web site), and help the bank to
 consistently implement the action most likely to drive each customer to more
 profitable behavior.
     In addition to supporting Carreker's efforts, Xchange will focus the
 resources of its EnAct business group on penetrating additional high growth
 vertical industries, including retail, insurance, telecommunications and
 automotive, where the company believes Xchange EnAct will dramatically improve
 the value and profitability of interactions between front line personnel and
 customers.
     According to Kimberly Collins, senior research analyst for Gartner, "Many
 organizations in industries outside of financial services have also been
 plagued by the inability to align their centralized marketing campaigns with
 their local sales initiatives.  The result is often inconsistent product and
 service offerings to customers which erodes customer satisfaction and loyalty.
 Technology solutions that enable companies to leverage their back office
 information effectively at the local level are much needed in many industries
 but have been generally lacking in the vendor market," said Collins.
 
     About Carreker:
     Carreker, headquartered in Dallas, Texas, is a leading provider of
 integrated consulting and software solutions that enable banks to identify and
 implement e-finance solutions, increase their revenues, reduce their costs and
 enhance their delivery of customer services.  Carreker's e-finance solutions
 use leading-edge technologies to create practical applications for banks and
 their customers.  The Company believes that its 22 years of experience in the
 banking industry, combined with a professional staff and advanced
 technological expertise, allow for customized solutions for banks and other
 financial institutions.  Carreker offerings fall into four groups: Revenue
 Enhancement, which increases banks' revenues through market segmentation and
 improved customer pricing structures; Payment Solutions, which assists banks
 in transitioning from paper to electronic-based payment systems and minimizing
 payment processing expenses; Enterprise Solutions, which integrates systems,
 combines operations and improves workflows and internal operational processes;
 and Cash Solutions, which optimizes inventory management of a bank's
 cash-on-hand, including management of how much cash is needed, when it is
 needed and where it is needed.  Carreker's customer list includes more than
 200 financial institutions in the United States, Canada, the United Kingdom,
 Ireland and Australia, including 70 of the largest 100 banks in the United
 States.  For more information please visit the website at
 http://www.carreker.com .
 
     About Xchange, Inc.
     Exchange Applications, Inc., now doing business as Xchange, Inc., helps
 companies focus their resources on customers who represent the best long-term
 profitability.  Xchange delivers results by instilling a profit-focused
 discipline in the organization, coordinating all touch points and creating a
 personalized dialogue with the most valuable customers.  These solutions are
 impacting the bottom line at approximately 275 client sites worldwide,
 including Citigroup, DaimlerChrysler and Vodafone.  Xchange is based in Boston
 with offices worldwide.  For more information, visit http://www.xchange.com .
     Xchange, Xchange Analytics, Xchange Campaign, Xchange eMessaging and
 Customer Value Management are trademarks of Exchange Applications, Inc.  All
 other trademarks contained herein are the property of their respective owners.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995: In addition to historical information contained herein, this news
 release contains forward-looking statements that involve risks and
 uncertainties, including the statements relating to current expectations for
 current and future periods.  The Company's actual results could differ
 materially from those discussed in such forward-looking statements, based on a
 variety of factors, including the adequacy of estimated expense accruals and
 reserves and the effect of the expansion of the Company's business on its
 operating cash flow; as well as factors affecting future performance,
 including the fact that the Company's markets are characterized by rapidly
 changing technology, evolving industry standards and frequent introductions of
 new products and enhancements; the fact that the market for customer
 optimization software is new and emerging; the fact that the Company relies
 heavily on indirect distribution channels for sales of its software; the
 unpredictability of the timing of customer orders; a highly competitive market
 for the Company's products and the unpredictability of whether its solutions
 will be accepted by new customers; the fact that the Company relies heavily on
 growth from international operations; the Company's ability to attract and
 retain skilled personnel; whether the Company will be able to efficiently
 integrate acquisitions; and the Company's ability to raise additional capital
 in volatile capital markets, in particular given its current operating losses.
 Additional information concerning factors that could cause actual results to
 differ materially from those in the forward-looking statements is contained
 from time to time in the company's filings with the Securities and Exchange
 Commission, including but not limited to the company's Quarterly Report on
 Form 10-Q filed, November 14, 2000 and recent registration statements filings
 on Form S-3.  The Company disclaims any obligation to update these statements
 for subsequent developments.
 
 SOURCE  Xchange, Inc.