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MOTIVE COMMUNICATIONS LAUNCHES MOTIVE LABS TO AGGRESSIVELY PURSUE DEVELOPMENT OF E-SERVICE NETWORKS FOR VERTICAL MARKETS

Former Sterling Software Executive Assumes CFO Role As Part of New Initiative

AUSTIN, Texas - August 23, 2000 - Motive Communications, a leading provider of online customer-care solutions, has launched a new initiative to proliferate the use of Motive's e-service technology in new and emerging market opportunities.

Motive Labs, a newly created special business unit within Motive, will work in close collaboration with Motive's major customers and strategic development partners to foster the creation of e-service networks and businesses for specific vertical markets such as Internet appliances, interactive television, Linux servers, wireless technologies, automobiles and even household appliances.

Pat Motola, who has served as Motive's CFO and vice president of business development for the last two years, is leading Motive Labs. Logan Wray, former senior vice president and CFO of Sterling Software, is assuming Motola's CFO and operational duties.

In his new role, Motola will head up a cross-functional team from product development, marketing, and business development. The Motive Labs team will work with Motive's strategic partners to tailor Motive's products and other intellectual property to meet the service needs of specific vertical markets. In addition, Motive Labs will work with those partners to develop appropriate business models and company structures, resulting in the creation of e-service networks that provide personalized service anytime, anywhere, using the power of the Internet.

"The tremendous demand we're seeing in e-service coupled with the close relationships we have with large companies defining these emerging, high-growth markets has created a unique opportunity for Motive and our partners," Motola said. "We believe that the right model to aggressively enter these markets is to create a special business unit entirely focused on these market opportunities and equip them with the resources of Motive and our partners."

"We're thrilled to be able to take our company in this exciting, dynamic direction," said Motive CEO and president Scott Harmon. "It has been Motive's vision, since its inception, to bring e-service to all of these markets. Creating Motive Labs and assigning an experienced Motive executive to run it underscores how serious we are about seizing this unique opportunity."

Sterling Software CFO Joins Motive Team

As Motola transitions to his new role, Motive has brought a seasoned veteran, former senior vice president and CFO of Sterling Software, Logan Wray, to oversee financial and operational responsibilities as the company's CFO. While at Sterling, Wray led the successful corporate expansion from a $400 million to a $1 billion dollar company, as evidenced by 45 consecutive quarters of annual revenue and earnings growth. This explosive growth period saw 10 strategic acquisitions and culminated with the recent merger with Computer Associates. In addition to assuming the CFO responsibilities, including finance, accounting, IT, and recruiting, Wray also will oversee select operational management responsibilities across all functions within Motive. Prior to his tenure at Sterling, Wray was a partner with Ernst & Young focusing on software.

"Over my career, I have developed a wide variety of expertise that's needed for managing fast-growing operations like Motive," said Wray. "I plan to tap all of these experiences to insure that Motive executes strategically and operationally to extend its leadership in the e-service marketplace."

About Motive Communications, Inc.

Motive Communications powers online customer care by offering software solutions that automatically connect online users to a company's answers and experts when they have problems. These products are used to build unique e-service networks that help companies foster customer loyalty, drive revenue, supercharge service capacity and increase market share. Motive's software solutions are used by leading companies in many industries including all.com, Compaq, Dell, EDS, Fannie Mae, Gateway, General Electric Information Systems, Great Plains Software, Hewlett-Packard Company, Intuit, Kmart, Merrill Lynch, Peregrine, pcsupport.com, SAIC and Target Corporation.

Motive was founded in May 1997 and is backed by $43M in funding from leading venture capital firms and private investors. Motive can be reached at (512) 339-8335 or on its Web site at www.motive.com. Motive employment opportunities can be found at jobs.motive.com.

Editorial Contact:
Stephanie Leonard
Motive Communications
512.339.8335, ext. 1071
sleonard@motive.com

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