Strong Market Demand for Innovative Solutions Drives CustomerSat Growth; Record Revenues Fuel Banner Fiscal Year

MOUNTAIN VIEW, Calif.--April 27, 2006--CustomerSat, Inc. announced strong revenue growth and significant customer wins in its 2006 fiscal year ending March 31, 2006. Organizations worldwide adopted the award-winning CustomerSat Enterprise(TM) hosted application for measuring, analyzing and driving action based on customer satisfaction and loyalty at an ever-increasing pace. Revenue in the quarter ending March 31 was up 62% over the same quarter in 2005. For the entire fiscal year, revenues were up 35%. As of FY2006, CustomerSat extended its consistent profitability to four consecutive years.

Customer Validation

CustomerSat added 50 new clients in FY2006, further strengthening its position in financial services, healthcare and manufacturing while maintaining its traditionally strong presence in the technology, telecom and software segments. The number of new clients added in the quarter ending March 31 was more than double that of a year earlier. As an example, in financial services, 21st Century Insurance, Prudential Insurance, and Wausau Financial Systems joined Wells Fargo, Charles Schwab, and Allstate as clients. "CustomerSat enables us to truly hear the voice of our customer," said Jill Ashcraft, Director of Customer Care at 21st Century Insurance. "CustomerSat has felt and acted like an extension of our organization; they are completely aligned and motivated, and they always deliver. There is such an advantage to working with a nimble and responsive partner."

In health care, Blue Shield of California, Thermo Electron, and Teva Pharmaceuticals joined Endo Pharmaceuticals, McKesson, and Quintiles. In manufacturing, ICI, Bunge, NewMarket, and Snap-On joined National Starch, Toro, and Honeywell. In travel and hospitality, BNSF and Boston Coach joined Circles, Pegasus, and Sodexho. "Thermo engaged CustomerSat to regularly survey over 20,000 customers and 10,000 employees worldwide," said Dan Shine, Vice President at Thermo Electron. "They enable us to act on feedback and effect positive change more quickly."

CustomerSat continued to strengthen its dominant position in the technology sector. In software, BusinessObjects, Oracle, and Wind River joined, among many others, Ariba and Salesforce.com, both long term clients. In telecom, Redback Networks and Spirent joined BellSouth and Nortel. In systems, Fujitsu, Network Appliances, Scientific Atlanta, and Toshiba joined AMD, Apple, Canon, HP and IBM. In e-business, Empirix and StubHub joined Akamai, CyberSource, Internap Network Services, and WebEx Communications.

"It's important to measure how your customers view your company and how they feel they've been treated," said Barry Mainz, Vice President of Worldwide Customer Operations at Wind River. "CustomerSat Enterprise is a great product and it works. Every time we call CustomerSat research consultants, they jump through hoops to deliver just what we need. From my perspective and that of my team, our relationship has been rock-solid."

Award-Winning Innovations

In October, CustomerSat Enterprise was named a 2005 Innovation Award winner by Customer Interaction Solutions magazine. "CustomerSat has demonstrated to the staff of TMC Labs that CustomerSat Enterprise is truly innovative in the CRM and contact center industries," said Nadji Tehrani, founder and chairman of TMC, publisher of Customer Interaction Solutions. The October 2005 issue highlighted CustomerSat Enterprise's integrated customer feedback collection across multiple channels, including online, phone interviews, speech-enabled IVR, PDA, and conventional paper questionnaire; built-in case management using business rules to automatically open and assign cases when satisfaction scores fall below specified thresholds; and powerful, real-time analytics that enable executives to pinpoint problems and opportunities.

CustomerSat was named an Award Finalist with its client Honeywell by two independent organizations:

-- The American Marketing Association (AMA) for the 2005 EXPLOR Award for Market Research. The award recognizes creativity, innovation, and business impact of market research.

-- The Information Technology Service Marketing Association (ITSMA) for its 2005 Marketing Excellence Award in the category "Improving the Customer Service Experience."

In FY2006, CustomerSat was awarded a US patent covering advanced techniques for measuring web site effectiveness and satisfaction with online transactions. Web site visitors often associate conventional web site surveys with annoying pop-up advertising. CustomerSat technology addresses these concerns by bringing intelligence to these surveys, enabling them to appear only under controlled circumstances, only as users are exiting web sites, or only for selected customers.

Thought Leadership

In FY2006, CustomerSat further strengthened its close ties to centers of thought leadership in customer satisfaction, loyalty, and analytics, strongly influencing and informing CustomerSat solutions and services. These centers include:

Harvard Business School. In FY2006, CustomerSat generalized and automated satisfaction-loyalty charts, popularized by the book The Service Profit Chain by Professors Heskett, Sasser, and Schlesinger, and incorporated the charts into CustomerSat Enterprise real-time analytics. Positioning Charts improve account management and product management by positioning accounts, products, vertical markets, geographies, and sales channels based on customer attitudes and behaviors.

The MIT Department of Mathematics helped specify CustomerSat's innovative Rating Categories, also introduced in FY2006, and their applications in financial services. CustomerSat chairman and CEO John Chisholm serves on the department's visiting committee with John S. Reed, former chairman of Citigroup and the New York Stock Exchange; Edmund F. Kelly, chairman and CEO of Liberty Mutual; and James H. Simons, CEO of hedge fund Renaissance Technologies.

The Stanford Institute for the Quantitative Study of Society (SIQSS), one of Stanford's twelve independent research laboratories, analyzes and identifies relationships in very large data sets such as the US Census and Department of Labor statistics over the last 50 years. SIQSS techniques have informed CustomerSat advanced analytics and modeling. SIQSS is directed by CustomerSat board member Dr. Norman Nie, who is also chairman and co-founder of analytical software leader SPSS, Inc. John Chisholm chairs the SIQSS advisory board.

Other CustomerSat affiliations include the Santa Fe Institute, the American Marketing Association, the Council of American Survey Research Organizations, Greater China CRM, and investor J.D. Power and Associates. "CustomerSat acts as a knowledge conduit from these centers of thought-leadership to our clients and uniquely helps them adapt leading-edge techniques and methods to their specific requirements," said Chisholm.

Client Development & Recognition

In FY2006, CustomerSat expanded its programs that enable and encourage its clients to apply best practices in customer loyalty and feedback:

Leadership Conference. The third annual CustomerSat Leadership Conference was attended by over a hundred thought-leaders and industry practitioners. Keynote speakers included Joe Wheeler, Managing Director of the Service Profit Chain Institute; Professor Emeritus Benjamin Schneider, a world-leading expert in employee service climate and its linkage to customer satisfaction, formerly of the University of Maryland; and Wendy Close, CRM success expert at Salesforce.com and, before that, long-time Gartner analyst.

ACE Awards. CustomerSat Achievement in Customer Excellence (ACE) Awards recognize rigorous application of customer feedback processes and outstanding performance as measured by those processes. Twelve companies, including BellSouth, McKesson, and WebEx, cleared the high customer satisfaction hurdles required to win ACE Awards. "We are honored to receive a CustomerSat ACE Award," said Patricia Martin, Vice President of Customer Support at CyberSource. "It validates our efforts to make exceptional customer satisfaction a core differentiator."

CustomerSat Benchmarking Programs show participating companies how their satisfaction and loyalty scores in relationship and transactional surveys compare to those of similar organizations. This helps those companies prioritize actions in a broader, market-wide context. In FY2006, CustomerSat expanded both the number and scope of its benchmarking programs.

Professional Certification Training. CustomerSat executives are frequently called on to train and certify the next generation of customer feedback professionals. In FY2006, CustomerSat executives lead training and certification courses for the American Marketing Association, the Greater China CRM Forum in Shanghai, the Customer Relationship Management Association in Seattle, and UCLA and Santa Clara University graduate schools.

About CustomerSat, Inc.

CustomerSat is the leading provider of enterprise solutions for measuring, analyzing, and managing enterprise-wide action responding to real-time customer feedback. With advanced technologies and proven market research techniques, CustomerSat delivers feedback solutions for service and support, sales and marketing, HR, channel and partner management, IT, website operations and e-commerce, supply chain management and investor relations. CustomerSat is headquartered in Mountain View, California, with offices throughout the US and Europe. For news, product demonstrations, and other company information, visit www.CustomerSat.com or call 1.800.372.7772.