Dynaptics Corporation Launches Internet's FirstAdaptive Personal E.ssistants.

Business Editors and High-Tech Writers

CUPERTINO, Calif.--(BUSINESS WIRE)--June 19, 2000

New Class of Real-Time Recommendation Software Detects and Adapts to

Online Behavior Patterns To Dramatically Improve Relevance of

eCommerce Suggestions

Dynaptics

Corporation today announced the launch of the industry's first Adaptive Personal E.ssistants, a new class of online recommendation technology, purpose built for the Internet, that will enable online merchants, auctions and business-to-business exchanges to instantaneously detect and respond to the behavior patterns of site visitors with increasingly relevant recommendations in real-time.

"It's clear that legacy web personalization technologies are not providing online merchants, auctions and exchanges with the solutions they need to maximize revenues," said Rick Vieth, Vice President of Marketing with Dynaptics Corporation. "The industry average for browse-to-buy conversion rates continues to hover at a disastrous 2% level. In addition, an unacceptably high percentage of online customers continue to abandon shopping carts before committing to a transaction because of poor or non-existent online assistance. In order for sites to effectively 'monetize their traffic', a new class of adaptive recommendation technology is needed - one that helps online shoppers quickly locate what they're interested in and makes highly relevant suggestions that take into account an individual shopper's preferences. That's exactly what our Personal E.ssistants do."

The company has developed two lines of Personal E.ssistants: the Personal Shopping E.ssistant (PSE) and the Personal Information E.ssistant (PIE).

The PSE applies best practices of brick and mortar sales professionals to online shopping creating a shopper experience that is as good or better than traditional in-store transactions.

The PIE is designed for auctions and exchanges whose principal concern is aligning online buyers and sellers as efficiently as possible in order to increase the frequency of site visits, bids, and the value of transactions.

"We are interested in Dynaptics' Personal Information E.ssistant and believe this technology may have significant potential to help our users more quickly and easily find items of interest on our site," said Jeff Taylor, Vice President of Product Marketing at eBay.

Dynaptics has developed five patent-pending technologies that enable its Personal E.ssistants to drive browse-to-buy conversion rates substantially higher than the industry norm, reduce the rate of shopping cart abandonment, and dramatically improve search capabilities to extend the duration of site visits and improve customer loyalty.

Practical Details

The Personal Shopping E.ssistant and Personal Information E.ssistant will be commercially available on June 28, 2000. Pricing for the PSE is based on offer clickthroughs per month, starting at $3,000 per month for Dynaptics-hosted deployments. Enterprise server licenses are alternatively available for $75,000.

The Personal Information E.ssistant pricing starts at $2,250 per month for Dynaptics-hosted deployments. Enterprise server licenses are alternatively available for $50,000.

Deployment services are available from Dynaptics as required. A typical deployment will be a 1-2 week exercise.

About Dynaptics

Founded in 1998, privately-held Dynaptics Corporation is the developer of the Internet's first adaptive Personal E.ssistants. This new class of adaptive recommendation technology is purpose built for Internet based online merchants, auction sites and exchanges to instantaneously detect and respond to online behavior patterns of site visitors with highly relevant, on-the-fly recommendations. Moving beyond legacy web personalization technologies including collaborative filtering, neural nets, and decision trees, Dynaptics' Personal E.ssistants will drive browse-to-buy conversion rates significantly higher, reduce shopping cart abandonment, and radically improve search capabilities for site visitors. The company's initial funding includes investments from Goldman Sachs, Broadview, Panasonic Ventures, and Band of Angels. Dynaptics Corporation is headquartered at 19925 Steven's Creek Blvd., Cupertino, CA 95104. For more information, visit the company's web site at www.dynaptics.com.