Firepond's SalesPerformer Reduces Isuzu Motors' Order to Delivery Cycle From 3 Months to 3 Weeks; Increased Revenues and Shortened Sales Cycle for Truck Engines

Business Wire, July 17, 2002

Business/Technology Editors

Firepond (Nasdaq: FIRE), a leading provider of software systems that optimize the process of converting leads into orders, announced today that Isuzu, Japan's one of biggest truck manufacturers and a global leader in diesel engines, has gone live with Firepond's SalesPerformer(TM) system. During the pilot phase the company already noted a significant improvement in its lead-to-order business processes, in particular a reduction in the order to delivery cycle from three months to three weeks. The application, which is being used by Isuzu's domestic and foreign sales forces, was implemented in three months using Firepond's RapidFIRE fast implementation template.

As in the rest of the world, truck and industrial engine sales were slowing at Isuzu due to the global economic situation. At Isuzu, each customer order which included new parts required significant design work, taking a considerable amount of time and human resources. Also, salespeople weren't able to give customers an indication of price and delivery date until they had checked with various internal departments. Firepond's SalesPerformer enabled Isuzu to introduce a configure-to-order process and, as a result, eliminated lost sales opportunities and frustration in the sales force.

"We are very impressed with how quickly we're seeing tangible business benefits from SalesPerformer," said Mr. Kanemaru, Manager of Power Train Division of Isuzu. "Not only have we shortened the total sales cycle dramatically, there is also a marked improvement in the efficiency of our business processes with salespeople and management sharing vital information about customer preferences."

The system includes an intelligent electronic drawing, coupled with product configuration, and automatic pricing and proposal generation.

"For manufacturers of complex goods like Isuzu, the process of turning a prospect into a customer can be a lengthy, iterative one involving people from many parts of the organization," stated Klaus Besier, Firepond Chairman and CEO. "What companies like Isuzu have learned, however, is that the technology exists today to optimize the lead-to-order process -- automating the steps required to get the order, and get it right. At Firepond, we are pleased to put our proven interactive selling solution to work for yet another blue-chip customer."

About Firepond, Inc.

Firepond, Inc. (www.firepond.com) is a leading provider of intelligent front-office software systems that help companies more profitably turn leads into orders - whether they sell through a direct sales force, an indirect channel network or via the web. The company's SalesPerformer system guides sales people, channel partners and customers through the entire "lead-to-order" business process -- delivering lead management, needs analysis, product and pricing configuration, proposal and quote generation and order capture.

Companies that manufacture complex goods or maintain complex distribution networks can realize a high return on their investment in Firepond's SalesPerformer by dramatically reducing the cost of sales through improved order accuracy and shortened sales cycles. For manufacturers, Firepond's "lead-to-order" systems reduce reliance on expensive engineering resources during the sales process to configure a product that best meets customer requirements. For insurers, Firepond's "prospect-to-customer" systems accelerate sales cycles, improve broker loyalty and simplify the renewals process. By leveraging a single intelligence engine to drive the entire process across multiple sales channels, Firepond further reduces total cost of ownership.

Firepond's global blue-chip customer base includes ABB, Compaq, Empire Blue Cross Blue Shield, Freightliner, Hitachi Construction Machinery, Horizon Blue Cross and Blue Shield of New Jersey, John Deere, Renault VI, SBLI Mutual Life, Sikorsky Aircraft Company and Steelcase International.

Portions of this release contain forward-looking statements regarding future events and are subject to risks and uncertainties. We wish to caution you that there are some factors that could cause actual results to differ materially from the results indicated by such statements. These factors include, but are not limited to: economic and other factors affecting the demand for e-business sales and service solutions; difficulties with the implementation and integration of Firepond products; market acceptance of Firepond's SalesPerformer and eServicePerformer Suites and their components in chosen vertical industries; potential changes to announced financial results based upon information generated in the company's internal investigation announced on May 31, 2002; uncertainty, costs, and potential damages associated with material litigation; our ability to attract and retain qualified personnel; quarterly fluctuations in operating results attributable to the timing and amount of orders for our products and services; our ability to keep pace with changing product requirements; difficulties and financial burdens associated with acquisitions; and other risks detailed in our filings with the Securities and Exchange Commission, including our form 10-K filed in January, copies of which may be obtained through the SEC's website at. www.sec.gov.