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eGain announces preliminary financial results for the June 2002 quarter

SUNNYVALE, Calif.–July 16, 2002 — eGain Communications Corporation (Nasdaq: EGAN), a leading provider of eService software to Global 2000 companies, today announced preliminary financial results for the fourth quarter of its fiscal year 2002.

Revenue for the quarter is estimated to be in the range of $6.4 to $6.6 million. On a pro-forma (non-GAAP) EBDA basis, which reflects earnings before depreciation, amortization, and other non-cash and restructuring charges, the company anticipates a net loss per share between $0.12 and $0.14. These results are preliminary and subject to change. Non-cash charges include amortization of goodwill, other intangible assets and deferred compensation, loss on disposition of assets as well as accreted dividends and other non-cash charges related to the company’s cumulative convertible preferred stock.

“The June quarter remained difficult,” noted Ashutosh Roy, eGain’s Chairman and CEO. “The enterprise software market continues to be adversely affected by the macro-economic environment. However, there were a number of key positives in the quarter. Licensed revenues increased by more than one hundred percent over the prior quarter and deferred revenues increased substantially reflecting a strong backlog of transactions that were booked but not recognized in the quarter. Our focus on product innovation remained unimpaired in the quarter as eGain continues to lead the market in eService solution capabilities. From a financial standpoint, our cash balance remains strong while costs and expenses were reduced by 15% over the March quarter. We remain committed to achieving our EBDA breakeven target of December 2002.”

Management will discuss financial results for the quarter and fiscal year ended June, as well as the outlook for the remainder of calendar year 2002, during its quarterly conference call, which is scheduled for August 8, 2002, at 5:00 p.m. EDT.


About eGain Communications Corporation

eGain (Nasdaq: EGAN) is a leading provider of eService software for the Global 2000. Selected by 24 of the 50 largest global companies to transform their traditional call centers into multi-channel contact centers, eGain solutions measurably improve operational efficiency and customer retention — thus delivering a significant return on investment (ROI). eGain eService Enterprise — the company’s integrated software suite — includes applications for email management, Web collaboration and self-service, and enterprise-wide knowledge management. Headquartered in Sunnyvale, Calif., eGain has an operating presence in 18 countries and serves over 800 enterprise customers on a worldwide basis — including ABN AMRO Bank, DaimlerChrysler, and Vodafone. To find out how eGain can help you gain customers and sustain relationships, please visit or call the company’s offices — United States: (888) 603-4246; London: +44 1753 464646; or Sydney: +612 9492 5400.

Cautionary Note Regarding Forward-looking Statements

All statements in this release that involve eGain’s plans, forecasts, beliefs, projections, expectations, strategies and intentions are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on information available to eGain at the time of this release, are not guarantees of future results; rather, they are subject to risks and uncertainties that may cause actual results to differ materially from those set forth in this release. These risks include, but are not limited to, the challenging economic environment; the uncertainty of demand for eGain products; the anticipated customer benefits from eGain products; increased competition and technological changes in the markets in which eGain competes; eGain’s ability to manage its expenditures; and other risks detailed from time to time in the company’s filings with the Securities and Exchange Commission, including the company’s annual report on Form 10-K filed on September 28, 2001, and the company’s quarterly reports on Form 10-Q. eGain assumes no obligation to update these forward-looking statements. Note: eGain is a registered trademark, and the other eGain product and service names appearing in this release are trademarks or service marks, of eGain Communications Corp. All other company names and products are trademarks or registered trademarks of their respective companies.

eGain Communications Press Relations:

Anne Carr


The Financial Relations Board
Pam Roberts, 415/986-1591
Karen Keating, 415/986-1591