January 23, 2001

Soliloquy, Inc. Announces $4.5 Million in Additional Funding and a New President and CEO, Expands Client List and Suite of Services

Company Continues to Build Significant Momentum in 2001

Soliloquy, Inc., the world's first company to offer "intelligent," fully automated solutions that enable end users to find the information, services and products they desire through targeted online dialogs, announced that it closed $4.5 million through a bridge financing this week. Soliloquy is currently raising an additional $5-10 million in its first institutional round.

Soliloquy continues to expand its comprehensive suite of eBusiness solutions that includes its Dialog Experts, Dialog Mining, user profiling and statistical tools. Together, these unique services allow for enhanced customer relationship management and leverage Soliloquy's personalized human-like interaction technologies to provide cost-effective, 24x7 automated solutions. While users interact with the "Experts" in their own natural language, the "Expert" captures mission-critical insights into key customer behavior. Soliloquy's Dialog Mining, user profiling and statistical tools and services allow clients to access real-time data regarding their customers' behaviors and make immediate changes to address specific customer needs or requests.

New President and CEO
Additionally, Soliloquy continues to build out its management team and has named Susan Berkowitz as its new President and CEO. Ms. Berkowitz most recently served as a Senior Vice President and Executive Committee Member of Wit Capital (now Wit Soundview). Prior to Wit Capital, she ran all of the business operations and was an original member of the management team of theglobe.com. "The leadership Susan has demonstrated in her past Internet ventures makes us confident that she will lead Soliloquy to achieve well-deserved distinction as a leader in the eCRM space," said Catherine Winchester, Soliloquy&Mac226;s founder whom Ms. Berkowitz succeeded. "I am extremely pleased to be part of the Soliloquy team," said Susan Berkowitz. "I have been fortunate to be part of companies that have leveraged the power of the Internet to completely transform businesses. In Soliloquy, I have found another company that is truly innovating in its space."

Growing Client Base
In addition to its other existing relationships with clients like CNET, in late December, Soliloquy reached an agreement with buy.com, the Internet Superstore, to provide its customers with a Notebook Expert. The Notebook Expert engages and supports customers throughout the online notebook purchasing experience in much the same way a traditional sales representative works. Because the interaction is truly customer, self- supported, Soliloquy&Mac226;s Notebook Expert provides an enhanced online customer experience while at the same time reducing the high costs of customer support.

"Soliloquy's Dialog Expert provides a great enhancement to better serve our customers," stated Travis Fagan, buy.com's VP of Customer Support. "Soliloquy's Notebook Expert has helped them find the exact notebooks they are looking for quickly and easily."

buy.com has been running a trial version of Soliloquy's Notebook Expert, which can be found on their "at home" notebook pages. After clicking on the Notebook Expert link, their customers are engaged in a real-time conversation as if they were speaking with a salesperson in a store.

New Product and Product Enhancements
Soliloquy continues to introduce new products based on its unique core technologies. "Soliloquy Experts understand the context and goals of each user experience because our products are powered by our patent-pending Dynamic Context technology," explains Mark Lucente, Soliloquy's Chief Technology Officer. "This core technology makes possible a variety of human-like interactions, whether for product selection, site navigation, post-sales customer management, customer support, call-center services and other customer service functions. The additional funding allows us to continue to expand our suite of products, including enhanced analytics capabilities."

Most recently, Soliloquy launched its Desktop Expert that features a number of important, new product enhancements. These enhancements have also been applied to the existing Notebook Expert. All of Soliloquy's Experts now offer unprecedented real-time targeted marketing capabilities, including up-selling and cross-selling. Experts can offer rebates, coupons and other context-triggered functionality based on a variety of rules and inferences. Soliloquy&Mac226;s new, simple-to-use Marketing Tool allows clients to create or adjust marketing rules, incorporating shopper history and demographics. Such a rule may be "Offer $500 rebate when a repeat buyer is interested in computers that have been on the market less than 3 months." As a direct result of these product improvements, Soliloquy&Mac226;s Experts can now offer the right information to the right end user at the right moment in their online experience.

Finally, Soliloquy's newest generation of Dialog Mining tools and services continue to exploit Dynamic Context technologies to provide richer and more relevant insights into customer profiles and psychology.

About buy.com
buy.com (Nasdaq ticker symbol: BUYX), a leading Internet Superstore, offers its over 3 million customers a comprehensive selection of brand name products in a broad range of categories including computer hardware and software, electronics, wireless products and services, books, music, DVDs, games, sporting goods, clearance products, a small business superstore and more at everyday low prices. Through their twelve online specialty stores, they offer over 950,000 products identified as separate stock keeping units (SKUs), using a convenient, easy-to-use shopping interface that features extensive product information and multi-media presentations. buy.com, founded in June 1997, is located in Aliso Viejo, California.

About Soliloquy, Inc.
Soliloquy, Inc. (www.soliloquy.com) is the world's first company to offer turnkey solutions that enable end users to find the information and products they desire through intelligent, targeted dialogs. Soliloquy's comprehensive suite of eBusiness Services, includes its trademarked Dialog Experts and Dialog Mining. These solutions have proven to deliver increased sales and decreased costs, while providing an improved experience for end users. Through revolutionary technology that humanizes the digital experience, end users can converse in natural language with the Dialog Expert as if they were interacting with real people. As a result of these dialogs, Soliloquy offers Dialog Mining services that deliver unprecedented insights into user psychology. Soliloquy's clients and partners include CNET, buy.com, CNET Data Services, Muze, Inc. and Net Perceptions. Soliloquy, Inc is a privately held company with 56 employees and is located in New York.