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SIDEWARE REPORTS THIRD QUARTER RESULTS

-- Company reports record revenue --

     RESTON, Va., November 15, 2000 – Sideware (TSE:  SYD.U and OTC (BB):  SDWSF), a leading developer of customer service solutions for e-businesses, today
announced record results for the quarter ended September 30, 2000.  Beginning with the third quarter 2000, Sideware will be reporting its results in U.S. dollars and in
accordance with generally accepted accounting principles (GAAP) in the U.S.  The company will be filing U.S. dollar, Canadian GAAP statements as well.  All figures in this
report are in U.S. dollars, unless stated otherwise.

For the third quarter ended September 30, 2000, the company reported sales of $190,748, compared with $357 for the period ended September 30, 1999.  These revenue
numbers include sales to related parties of $8,338 for the quarter ended September 30, 2000 and $357 for the quarter ended September 30, 1999.  Third party sales of
$182,410 for the quarter ended September 30, 2000 represent growth of 38% over third party sales for the previous quarter.  

The net loss for the quarter ended September 30, 2000 was $7,473,098, or $0.13 per share, compared with a net loss of  $1,371,123, or $0.03 per share, for the quarter
ended September 30, 1999.  Included in the net loss figures is a non-cash, pre-tax charge for stock-based compensation of $2,949,207 for the quarter ended September 30,
2000 and nil for the quarter ended September 30, 1999.  Excluding this charge, the company’s net loss per share was $0.08 for the quarter ended September 30, 2000, and
$0.03 for the quarter ended September 30, 1999.

In the past two quarters, the company signed sales contracts of $1.3 million.  To date, Sideware has recognized $314,219 of these sales.  The company expects to
recognize the remainder of the existing sales contracts in future quarters, in accordance with the company’s revenue recognition policy.

During the third quarter, Sideware had a number of significant achievements including hiring an Oracle veteran as CTO, signing its 30th customer and 30th e-business
partner, and launching its holiday e-tail campaign.

“Sideware is executing its business strategy according to plan,” said Jim Speros, President and CEO of Sideware.  “With two quarters of back-to-back revenue growth, the
company is continuing to increase its presence in the eCRM market by systematically building up its customer and partner base and by making strategic hires to help
shape the future direction of the company.”

Recent Highlights

·       Sideware Obtains Toronto Stock Exchange Listing

In November, Sideware obtained a listing on Canada’s senior stock exchange, marking an important milestone and the next step in the company’s capital markets strategy.  
The international scope of the TSE will broaden Sideware’s access to investment capital, raise visibility in the financial community, improves the liquidity of the company’s
shares and gives investors in international markets an opportunity to participate in Sideware.  

·       Oracle Veteran Joins Sideware as CTO

In late September, Rahul Bardhan, a seven-year veteran of Oracle Corp., joined Sideware as the CTO.  Bardhan, whose recent responsibilities as a senior practice director
included strategizing and executing Oracle’s e-business early adopter programs for customers such as Ford, Bertelsmann and Covisint, is bringing his next-generation
technology expertise to Sideware to direct the company’s web-based customer service solution offering.

·       Sideware Launches More Comprehensive IR Website

Sideware recently unveiled a new investor relations web site with the goal of providing easily accessible and up-to-date information to the financial community.  The site,
which can be accessed by clicking on the Investor Relations icon on Sideware’s web page or by visiting http://www.sideware.com/flash/investorcorp.jsp , contains a
corporate overview, stock quotes, an investor FAQ and financial information.  As part of the attempt to provide regular communication with all interested parties, the site
allows visitors to register for e-mail alerts on Sideware’s major announcements.


·       Sideware Signs 30th Customer

Sideware signed its 30th customer in the third quarter of 2000.  Mysawmill.com, dreamjewels.com and angelaudio.com were three of the 14 customers that Sideware signed
during the quarter.  Sales contracts from these 14 customers were $900,000.  A portion of these sales contracts will be recognized in subsequent quarters, in accordance
with the company’s revenue recognition policy.

·       Sideware Signs 30th Partner

Sideware signed its 30th e-business partner in the third quarter of 2000.  Valu-net, Doxsys and NextClick were three of the ten partnerships signed during the quarter.  
Sideware continued to evolve it e-business partnerships with a wide range of companies, including Siebel, SAIC and Financial Fusion.


·       Sideware Announces Availability of IBM Financing

Sideware signed an agreement with IBM Global Finance to offer Sideware customers flexible terms and competitive financing for its web-based, real-time customer service
solution.

·       Sideware Launches Holiday e-Tail Campaign

Sideware launched its e-tail campaign with a series of print advertisements in leading business, e-commerce and eCRM trade publications.  In late July, the company held a
live webcast with industry veteran Lauren Freeman of the e-tailing group.  In addition, Sideware offered its exclusive Holiday Forecast Report, titled A More Profitable Holiday
Season 2000:  Sideware Perspectives Containing Gartner Research on CRM for E-tailers, to online retailers.  Designed to educate e-businesses about how they can use
eCRM to move from a customer acquisition strategy to a customer retention mode, the campaign’s goal was to help e-businesses move past the customer service mistakes
of holiday season 1999.



About Sideware

Sideware is a leading developer of customer service solutions for e-businesses.  Sideware’s Dr. Bean software is an e-Customer Relationship Management (eCRM) solution
based on 100% Java and Enterprise Java technology, providing multi-platform scalability and functionality across all major servers and operating systems.  In addition, the
company is an independent software vendor (ISV) of IBM and a Premier Software Partner of Siebel.  Other key strategic business partnerships include ties with Oracle
Corp., Sun Microsystems and SAIC.  Based in Reston, Va., Sideware Corporation is a wholly owned subsidiary of Sideware Systems Inc. and publicly trades on both the
Toronto Stock Exchange and the OTC Bulletin Board (TSE: SYD.U and OTC (BB): SDWSF).  For further information on Sideware, please visit http://www.sideware.com

ON BEHALF OF THE BOARD

Jim Speros
President and CEO

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this communication (as well as
information included in oral statements or other written statements made or to be made by Sideware Systems Inc.) contains statements that are forward-looking, such as
statements relating to the future anticipated direction of the high technology industry, plans for future expansion, various business development activities, planned capital
expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could
significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of
Sideware Systems Inc. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing
management, financial activities, domestic and global economic conditions, changes in federal or state income tax laws, and market competition factors.

 
Editorial Contact:
Tara Dunion
Sideware Corporation
703-437-9002 x 3044
tdunion@sideware.com
 
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