Teradata Takes Data Mining Beyond Beer and Diapers; Fraud Detection, Customer Attrition, Propensity to Buy are Among Today's Applications of Data Mining

Business Wire, July 31, 2002

Business Editors

DAYTON, Ohio--(BUSINESS WIRE)--July 31, 2002

Ten years ago, Teradata, a division of NCR Corporation (NYSE:NCR), pioneered the field of data mining by looking at sales data from a retailer and discovering that in the evening hours, beer and diapers are often purchased together. This relationship, called a data mining affinity, captured the imagination of industry watchers, spawning a legend that has been recounted hundreds of times and is frequently cited as the textbook example of data mining.

Today, Teradata's data mining lab helps companies in many industries tap into their business data to take on more pressing issues like detecting fraud, understanding which customers are likely to defect, identifying customers who are likely to need additional products or services and discovering which customers are most profitable.

In recognition of the tenth anniversary of the beer and diapers legend, Teradata's data mining experts have compiled their favorite Teradata data mining legends-in-the-making:

A Real Horse Pill

-- A European healthcare provider used data mining to discover

that one patient was filling prescriptions at such a rate that

he would have died from the dosage. When they investigated,

they found the patient was feeding the pills to his ailing

horse.

Pen and Ink

-- A financial institution used data mining to discover that

credit applicants who used pencil on the form were much more

likely to default than those who filled out the application

using ink.

Data and Taxes

-- National Fraud Awareness Week is August 4-10, 2002

-- A data mining webcast archive is available at www.teradata.com/beeranddiape rs -- "Beyond Beer and Diapers: The Origins and Future of Data Mining"

Australian Cheats

-- Australia's national social services agency CentreLink, uses

data mining to identify welfare cheats and identity theft.

They've prosecuted 144 identity frauds in the past year,

saving A$3 million. The agency estimates it saves millions

every year avoiding fraudulent welfare claims and

overpayments.

Mining Mines

-- The U.S. Labor Department's Mine Safety and Health

Administration mines their mine data. After consolidating

multiple, disparate systems, the department is able to look at

all their data including inspection records, safety violations

and miners' training and certifications. Now that requests for

information are nearly instantaneous -- rather than passing

through several channels -- the organization has seen

improvements in safety and productivity.

About Teradata Division

Teradata, a division of NCR Corporation, offers powerful analytical solutions that help businesses drive growth. Teradata solutions include the Teradata database, and analytical applications for customer relationship management, operations and financial management, business performance management and e-business. To learn more about Teradata Division and its solutions, go to www.teradata.com.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leading global technology company helping businesses build stronger relationships with their customers. NCR's ATMs, retail systems, Teradata(R) data warehouses and IT services provide Relationship Technology(TM) solutions that maximize the value of customer interactions. Based in Dayton, Ohio, NCR (www.ncr.com) employs approximately 30,400 people worldwide.

NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries.

Notes to Editors

-- National Fraud Awareness Week is August 4-10, 2002

-- A data mining webcast archive is available at www.teradata.com/beeranddiape rs -- "Beyond Beer and Diapers: The Origins and Future of Data Mining"