News release

Blue Martini Software and HP Form Alliance to Deliver Customer Interaction Solutions for Enterprise-Scale E-Business

Comprehensive alliance includes joint marketing and sales initiatives

SAN MATEO, Calif., & PALO ALTO, Calif., Oct. 24, 2000

Blue Martini Software (NASDAQ: BLUE), a provider of enterprise software applications to understand, target and interact with customers, and Hewlett-Packard Company (NYSE: HWP) today announced a multi-year strategic alliance to bring next-generation customer interaction solutions to enterprise customers worldwide. Blue Martini and HP will work together to bring the Blue Martini Customer Interaction System to the HP-UX¹ platform and to implement a multi-year training and co-marketing program, initially focused on global manufacturing enterprises.

"HP offers a world-class hardware platform that's reliable and scalable, and we're excited to work with them on an integrated e-business solution that can be rapidly deployed and can quickly show bottom-line results," said Monte Zweben, president and CEO of Blue Martini Software. "Together we will deliver an offering that meets the demands of major global corporations that need to understand, target and interact with customers."

The alliance's sales and marketing efforts will initially be aimed at serving customers with a manufacturing focus, an area of strength for both companies. Blue Martini will train 500 HP enterprise sales representatives to advocate and co-sell Blue Martini products with Blue Martini's direct sales force to customers in North America, Europe, Asia-Pacific and Latin America. In addition, the agreement significantly expands Blue Martini's worldwide presence, with 4,000 HP global sales representatives authorized to introduce Blue Martini's products to HP customers. Both companies also have agreed to set up a co-marketing program that includes campaigns and educational seminars.

"HP is intent on delivering e-services and solutions that enrich the customer experience, and we work with leading e-business companies such as Blue Martini Software to deliver on this promise," said Nigel Ball, vice president and general manager, HP E-Services Partner Division. "We believe that together we can help enterprises maintain the integrity of their brands, extend geographical reach and sustain profitable customer relationships across multiple channels."

Availability

Blue Martini is expected to deliver the Java™-based Customer Interaction System on the HP-UX 11.0 platform for Unix® later this year. The companies are dedicating resources, including a Blue Martini and HP team, focused on porting to and optimizing the Customer Interaction System for the HP platform.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that's always on.

HP has 86,000 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

About Blue Martini Software

Blue Martini Software provides enterprise applications to understand, target and interact with customers. Companies deploy the Blue Martini Customer Interaction System to interact with customers on the web, via call centers, in stores, over wireless devices through e-mail, direct mail and on online marketplaces. Business people use the Customer Interaction System to manage products, content, transactions, analysis and personalization. Companies that interact directly with customers build their brands more effectively than those using only traditional media, resulting in increased revenues across all channels. Blue Martini's customers include Canadian Tire Corporation, Giant Eagle Grocery, Harley-Davidson, Levi Strauss & Co, Polaroid and Saks Fifth Avenue. Blue Martini can be reached at 650-356-4000 or www.bluemartini.com.

¹ HP-UX Release 10.20 and later and HP-UX Release 11.00 and later (in both 32- and 64-bit configurations) on all HP 9000 computers are Open Group UNIX 95 branded products.

"Blue Martini," and "Blue Martini Software" are trademarks of Blue Martini Software, San Mateo, CA 94403. Java is a U.S. trademark of Sun Microsystems, Inc. UNIX is a registered trademark of the Open Group. Other product and company names may be the trademarks of their respective owners.

This news release regarding Blue Martini's agreement with Hewlett-Packard Company includes forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to: delays in the development or release of new products or product enhancements by Blue Martini, risk as related to market acceptance of Blue Martini's product; customization, deployment and/or operational delays or errors associated with Blue Martini's product or those of third parties; Blue Martini's need to maintain and enhance business relationships with systems integrators and other parties; activities by Blue Martini and others regarding protection of intellectual property; and release of competitive products and other actions by competitors. Further details on these risks are set forth in Blue Martini's filings with the Securities and Exchange Commission ("SEC"), including its filing on Form 10-Q for the quarter ended June 30, 2000. These filings are available on a website maintained by the SEC at http://www.sec.gov. These forward-looking statements are generally identified by words such as "expect," "will," "anticipate," "intend," "believe," "should," "estimate," "expect," and other similar words and expressions. Blue Martini does not undertake an obligation to update forward-looking statements.