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Corporate Social Networking Fuels Growth and ROI for Interface Software Customers

Leading venture capital firm 3i and law firm Honigman Miller Schwartz and Cohn attest InterAction® facilitated new client wins and impressive revenue gains

OAK BROOK (IL) 8 March, 2004: Interface Software, the leader in Relationship Intelligence solutions, announced today its customers are receiving substantial ROI through corporate social networking functionality built into its InterAction CRM product. Interface Software was one of the original innovators of corporate social networking with the launch of InterAction in late 1996, and today more than 400 relationship-based organizations worldwide are leveraging its technology. While numerous social networking start-ups have sprouted in recent months, Interface Software stands alone in this space with a proven business model that has resulted in consistent growth and uninterrupted profitability over an extended period of time.

"InterAction is a critical tool to help us identify key strategic relationships and leverage them before our competitors can get a foothold in a deal — in essence, revealing the invisible relationship connections that drive our business," said Rod Perry, Director of Technology & Human Resources at 3i, a leading global venture capital and private equity firm. "It's providing significant value to our organization, facilitating deals that garner millions in profits for our organization."

3i acquired InterAction in 2002 to help the firm achieve its "one-room company" corporate strategy while expanding its global presence. With more than 600 investment professionals operating in 16 countries, 3i needed a Relationship Intelligence solution that would enable colleagues within the organization to communicate with each other and also provide visibility into the firm's collective network of strategic relationships. "InterAction helps eliminate the barriers between offices and between our investment professionals who might not even know one another," said Perry.

For instance, in a recent buyout deal, 3i wanted to approach a German company to buy one of its French subsidiaries. The UK team members leading the acquisition did not personally have the high-level relationship needed, so they turned to InterAction to determine if another firm member might. Utilizing Who Knows Whom™, one of the corporate social networking features built into InterAction, they uncovered a colleague working out of the Milan office who had a relationship with the target company's mergers and acquisitions director. This colleague agreed to secure the needed introduction and the deal was subsequently awarded to 3i. The firm expects to garner profits in the $25-50 million dollar range from the buyout. "I found it compelling that someone on the UK team was looking for an opportunity, the business was in Germany and the strategic relationship we found was in Italy," said Perry. "Without InterAction, it would have been unlikely that we uncovered this strategic connection."

InterAction also proved invaluable in another international deal in which 3i wanted to buy out the Spanish subsidiary of a French company. The system revealed a strategic relationship with the key decision-maker. By leveraging this connection, 3i ultimately secured the deal in which it will invest $25-50 million dollars and expects profits of two to three times that amount.

"While the hype surrounding social networking is new, the technology is not," said Nathan Fineberg, president and CEO of Interface Software. "We were the first provider to offer corporate social networking — and eight years later, five product upgrades down the road and with hundreds of organizations using InterAction, we have the technology, know-how and experience that are helping generate profits within the corporate environment."

The Detroit-based law firm of Honigman Miller Schwartz and Cohn, a full-service firm with 170 attorneys, provides additional testament to the value of InterAction's social networking capabilities. In one instance, Cynthia Reaves, a partner with the firm who specializes in health care law, was targeting a potentially lucrative client and needed to find someone who could make an introduction. "I didn't know this individual well, so I couldn't have approached him on my own to pitch the firm's services," recalled Reaves. An InterAction 'Who Knows Whom' query revealed that one of Reaves' partners had a close relationship with the prospect. Reaves quickly contacted this partner to see if she might broker an introduction. As it turned out, Reaves' colleague was also interested in pursuing this prospect — but her area of specialization was not currently needed, and accordingly she did not think the firm's chances of winning the client at that time were good. However, by joining forces — leveraging the partner's relationship and Reaves' health care law expertise — the two arrived at a strategy for approaching the prospect and pitching their services.

The strategy worked, and this prospect has retained Honigman Miller Schwartz and Cohn for this matter, which partners project will likely bring in over six-figures of revenue for the firm for this engagement alone. "Had either of us approached the prospect on our own, the likelihood of winning the engagement would have been low," explained Reaves. "But by uncovering a strategic relationship via InterAction and joining forces, we were able to convert this prospect to a profitable client."

An executive white paper entitled Relationship Capital Management - Going Beyond Social Networking To Sell In Relationship-Based Organizations, published by the research and analyst firm, The Aberdeen Group, details Interface Software's corporate social networking capabilities. A complimentary copy can be downloaded at: www.interaction.com/aberdeen.

About Interface Software
Interface Software is the leading provider of CRM solutions enabling professional services firms and similar relationship-based organizations to create the Relationship Intelligence they need to generate new business and enhance client service. Its flagship product, InterAction, is a flexible and uniquely designed platform that delivers this Relationship Intelligence throughout the organization, quickly, efficiently and cost-effectively. Relationship Intelligence is a firm-wide asset that reveals the unique and complex connections between people, companies, relationships, experience and expertise, empowering professionals to leverage who and what they know to uncover new revenue opportunities, differentiate themselves from the competition and enhance client service. InterAction is internet-enabled, allowing professionals to view information however they choose—through knowledge management platforms, corporate portals, intranets, extranets and wireless devices. Interface Software has received numerous accolades, including the Inc 500, the Deloitte & Touche Technology Fast 50 for Greater Chicagoland, the Deloitte & Touche Technology Fast 500 and the Upside Hot 100. For more information please visit Interface Software's website at www.interaction.com.

 
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InterAction, Watch List, Who Knows Whom and Relationship Map are trademarks of Interface Software, Inc. and may be registered in certain jurisdictions. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.