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New IT/Contact Center Market Research Confirms Quality Monitoring Software as Top Investment Priority, Names Witness Systems Industry Leader


ATLANTA (November 7, 2002)  -  Witness Systems (NASDAQ: WITS), a leading
global provider of performance optimization software and services, today
announced several new research reports depicting rising market demand for
technology, such as the company's eQuality® software, as well as separate
studies illustrating the company's increasing market share and demonstrable
customer implementations of its solutions.

Frost & Sullivan, a leading international high technology market consulting
firm, projects a 26 percent compounded annual growth rate for quality
monitoring software, the core market in which Witness Systems competes with
its eQuality suite, through the year 2008.  According to the firm's North
American Agent Performance Optimization Software Markets report, published
last month, low market penetration rates will keep demand for quality
monitoring and contact center recording software high throughout the coming
years.  

Further validating the continued growth of the quality monitoring market,
Venture Development Corporation (VDC), an independent technology market
research and consulting firm, is issuing a report focused on the relative
importance of different contact center technology investments.  Based on the
contact center executives surveyed, the firm found that quality monitoring
outranked all other technologies in importance - including computer
telephony, CRM, e-mail response management systems and workforce management
applications, among others.  

Illustrating an example of the importance of quality monitoring solutions
such as eQuality, Aberdeen Group, a leading IT market analysis and
positioning services firm, featured Continental Airlines' implementation of
Witness Systems' eQuality solutions in its recently published What Works:
Ten Significant Implementations in CRM/Call and Contact Centers study.

Frost & Sullivan Recognizes Witness Systems' Market Leadership and Growth
Witness Systems increased its market share in the North American quality
monitoring market - retaining its number one position - according to Frost &
Sullivan's report.  In addition to its market share leadership position, the
report named Witness Systems as the recipient of its "Market Engineering
Award" for the second consecutive year.  This honor is presented to the
company that has exhibited market share leadership through the
implementation of market engineering strategy.  Witness Systems was
presented this award for its excellence in all areas of the marketing
engineering process, including the identification of market challenges,
drivers and restraints, as well as strategy development and methods of
addressing these market dynamics.  

"Witness Systems extended its leadership position in the quality monitoring
software market, as the company's revenue increased in the first six months
of the year - a notable achievement given the current challenging economic
environment," said Katrina Howell, program leader of contact center services
at Frost & Sullivan.  "Key to this is the company's strong brand awareness
and the breadth of its integrated performance optimization software suite."


Frost & Sullivan also points to Witness Systems' leadership and the
innovation of its eQuality software in the report, citing the eQuality suite
as "feature-rich core customer interaction recording software" and part of a
larger solution set comprised of a "well-integrated suite of applications
sold in conjunction with quality, forming a compelling agent performance
optimization suite.  These include an analytical application with agent,
management and executive scorecard capabilities and an e-learning
application."

Aberdeen Group Spotlights Key Contact Center Technology Implementations
Aberdeen Group researched contact center technology deployments to determine
both the quantitative and qualitative data of specific contact center
implementations in its study, published in October 2002.  A cross-functional
team of Aberdeen analysts from three different practice areas - customer
relationship management, communications infrastructure and services, and IT
services - then independently reviewed, ranked and scored the submissions.
Interviews also were conducted with the end user organizations to confirm
the details of the implementations and collect additional information for
the report.  

One of the 10 featured companies in Aberdeen's report was Continental
Airlines.  The implementation Aberdeen's study focused on was its deployment
of eQuality from Witness Systems.  Using the software, the airline carrier
has experienced measurable results, including increasing e-ticket sales by
eight percent, raising vendor referral programs by 22 percent, growing
overall quality scores by 10 percent and increasing first-call resolution by
20 percent.  Other benefits experienced by Continental include improvements
in its team leaders' productivity and a 100 percent increase in the number
of agent evaluations performed, enabling staff to benefit from more frequent
performance feedback.

Aberdeen found that "Continental Airlines' experience with an effective
implementation of a quality monitoring and performance management system is
an important 'leading indicator' of things to come in the contact center
market."  It also stated that what Continental and Witness Systems have
found is "... an innovative way in which these monitoring technologies are
being used to analyze customer behavior and buying activities; to better
understand agent interactions with the customer and with contact center or
CRM systems at the screen level; and to monitor, evaluate and improve agent
performance in a systematic, repeatable and positive manner."

"The clear, measurable results Continental has achieved using Witness
Systems' eQuality solution led us to conclude that this was a significant
and extremely successful CRM implementation, as well as a leading indicator
of more widespread adoption of customer interaction recording systems," said
Christopher Fletcher, vice president and research director at Aberdeen.
"Used effectively, a quality monitoring - or customer interaction recording
system - can provide the basis for ongoing performance improvements at the
agent level, which can result in better operational efficiencies and
measurable gains in customer service quality."

About Frost & Sullivan
Frost & Sullivan, a global leader in international strategic market
consulting and training, presents Market Engineering awards to companies
that demonstrate the diligence, perseverance and dedication required to
develop a successful business plan and excel in the increasingly competitive
global marketplace.  Frost & Sullivan rigorously analyzes specific criteria
to determine Marketing Engineering award recipients in a variety of regional
and global market landscapes.  Founded in 1961, Frost & Sullivan is
headquartered in San Jose, California with offices located worldwide:  New
York, San Antonio, Toronto, London, Paris, Frankfurt, Beijing, Tokyo,
Singapore, Mumbai and Kuala Lumpur.  For further information, visit
http://awards.frost.com.  

About Venture Development Corporation
Venture Development Corporation, a technology market research and strategy
firm, was founded in 1971 by graduates of Harvard Business School and MIT.
Over the years, VDC has developed and fine-tuned a unique and highly
successful methodology for forecasting and analyzing dynamic technology
markets.  The company has over 30 years of experience in providing market
research, strategic analysis and consulting services to technology companies
worldwide.  The VDC mission is to provide our clients with strategic and
tactical information that satisfies real needs and will provide lasting
value, fostering client loyalty and respect.  www.vdc-corp.com

About Aberdeen Group
Founded in 1998, Aberdeen Group is a leading IT market analysis and
positioning services firm that helps information technology vendors
establish leadership in emerging markets.  The firm provides IT market
intelligence, positioning, and market acceleration services to established
and start-up technology companies.    Aberdeen's consultants provide
up-to-the-minute global IT market insights in more than 25 IT market
segments.  Research practices focus on emerging market opportunities, market
growth rates, important industry trends and customer buying patterns.  The
firm also helps clients to identify new market opportunities, enter those
markets successfully, and accelerate the adoption of new technologies.
Headquartered in Boston, Massachusetts, Aberdeen has research and consulting
divisions in Palo Alto, California; Fort Collins, Colorado; and Amsterdam,
the Netherlands.  www.aberdeen.com.


About Witness Systems
Witness Systems (NASDAQ: WITS) provides the contact center industry's first
integrated performance optimization software suite to help global
enterprises capture customer intelligence and optimize workforce
performance.  Comprised of business-driven multimedia recording, performance
analysis and e-learning management applications, the browser-based eQuality®
solution is designed to enhance the quality of customer interactions across
multiple communications media, including the telephone, e-mail and Web.  The
closed-loop suite enables companies to record, evaluate and analyze customer
contacts, and then launch e-learning to develop staff, generate additional
revenue, and achieve greater customer retention and loyalty.  An integrated
business consulting, implementation and training methodology provides
services to support an effective, rapid deployment of eQuality that enables
organizations to maximize their return on investment.  For additional
information about Witness Systems and its eQuality software suite, visit
www.witness.com, or call 1.888.3.WITNESS.

Cautionary Note Regarding Forward-looking Statements Under the Private
Securities Litigation Reform Act of 1995:  Information in this release that
involves Witness Systems' expectations, beliefs, hopes, plans, intentions or
strategies regarding the future are forward-looking statements that involve
risks and uncertainties.  These statements include statements about Witness
Systems' strategies in the marketplace, its market position and its
relationship with customers.  All forward-looking statements included in
this release are based upon information available to Witness Systems as of
the date of the release, and the company assumes no obligation to update any
such forward-looking statement.  These statements are not guarantees of
future performance and actual results could differ materially from our
current expectations.  The factors that could cause actual future results to
differ materially from current expectations include, but are not limited to,
fluctuations in customer demand and the timing of orders; the company's
ability to manage its growth; the risk of new product introductions and
customer acceptance of new products; the rapid technological change which
characterizes the company's markets; the risks associated with competition;
the risks associated with international sales as the company expands its
markets; and the ability of the company to compete successfully in the
future, as well as other risks identified under the caption "Management's
Discussion and Analysis of Financial Condition and Results of Operations" in
the company's Annual Report on Form 10-K for the fiscal year ended December
31, 2001 and any other reports filed from time to time with the Securities
and Exchange Commission.

Witness, eQuality and the Witness logo are United States registered
trademarks of Witness Systems, Inc., protected by laws
of the U.S. and other countries.  All other trademarks mentioned in this
document are the property of their respective owners.



 
Editorial Contact:
Shana Peterson
Porter Novelli
404.995.4505
shana.peterson@pnicg.com
 
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