<PAGE>
[GRAPHIC OMITTED] SEDONA
CORPORATION
SEDONA Corporation CONTACT:
--------------------------
Vicki Franchetti
(610) 495-3003, ext. 214
[email protected]
KCSA INVESTOR CONTACT:
---------------------
Sarah Shepard / Elena Bonaiuto
(212) 896-1236 / (212) 896-1233
[email protected] / [email protected]
KCSA MEDIA CONTACT:
Michael Kniat / Yin Chang
(212) 896-1238 / (212) 896-1228
[email protected] / [email protected]
FOR IMMEDIATE RELEASE
---------------------
SEDONA Corporation Reports
Second Quarter and Six Months Results
- - - - -
Announces Completion Of Conversion To Application Service Provider
- - - - -
Highlights Accomplishments
Limerick, PA - August 2, 2000 - SEDONA(R) Corporation (NASDAQ: SDNA) today
reported second quarter and six month results for the period ended June 30,
2000, and the completion of its transition to providing its Internet CRM
solutions as an Application Service Provider (ASP).
In announcing the second quarter results and developments during the period,
Marco Emrich, President and Chief Executive Officer, said, "The developments
during the second quarter were pivotal for the growth of our Company. We have
now transitioned to an Application Service Provider model, delivering
comprehensive Customer Relationship Management (CRM) solutions to small- and
mid-sized financial services companies and Internet retailers. Also, during the
quarter we have acquired several new customers and have partnered with companies
that are implementing our CRM solution."
"During the quarter we introduced the next generation of our flagship product,
Intarsia(TM), an Internet-based CRM application, which we believe is capable of
significantly reducing the cost and time required for financial service
companies to implement a comprehensive CRM solution. We now have this product in
test at several financial service companies."
(more)
<PAGE>
SEDONA REPORTS/2
Mr. Emrich continued, "With the completion of our acquisition of the Customer
Information Management System (CIMS) business unit of Acxiom(R) Corporation, and
the staffing of the highly experienced sales force during the second quarter, we
have begun to build a pipeline of sales leads and our sales backlog continues to
grow. In addition, we have developed strategic relationships targeted at
creating new distribution channels for our Internet CRM solution. We believe
these developments will benefit the Company and its shareholders."
The Company pointed out that as an Application Service Provider, SEDONA will be
required to recognize revenue ratably during the contract life, rather than at
the time of the project's completed installation. This method will allow
shareholders, and others, to track the Company's progress through supplementary
information, including sales backlog.
Major Company Highlights...
o SEDONA launched a new version of Intarsia(TM), including wireless
functionality. Intarsia(TM) is the Company's Internet CRM Application for
small-to-mid-sized financial services companies.
o E.piphany and SEDONA announced an agreement for the Company to customize and
integrate E.piphany's E.5 Campaign Management application as a new component
of Intarsia.
o The Company announced an alliance with ADS Financial Services Solutions to
jointly market and deliver a solution comprised of SEDONA's CRM products and
ADS' CRM consulting services.
o SEDONA signed an agreement with the IBM AS/400 Customer Technology Center to
port Intarsia to the AS/400 e-business platform. IBM AS/400 is the world's
number one mid-range platform for running core business applications and is
particularly prevalent in small- and mid-sized financial services companies.
o A strategic alliance was announced with consulting firm, Profit Resources, to
produce additional functionality upgrades to the Profitability Management
component of Intarsia.
o SEDONA joined the Customer Profile Exchange (CPExchange) group working to
develop a vendor-neutral, open standard to support privacy-enabled exchange
of information across varying and separate applications and systems.
o The Company announced that its customer relationship management (CRM)
application has been certified to support the Acxiom Data Network. The
certification enables SEDONA customers to access InfoBase(TM) data products
to enhance customer and prospect records with preference, behavior and
demographic data.
o SEDONA announced that it is entering the international eCRM marketplace with
the engagement of Japan Entry Corporation, which will assist the Company in
gaining Far East presence and distribution.
(more)
<PAGE>
SEDONA REPORTS/3
Financial Results...
SEDONA reported that it ended the second quarter with a sales backlog of
$1,034,000 and revenues of $238,000 for the three months ended June 30, 2000
compared to revenues of $197,000 a year ago. The loss for the three months ended
June 30, 2000 was $2,841,000 or $0.11 per share, as compared to a loss of
$1,268,000 or $0.06 per share a year ago. The Company indicated that results
reflected the completion of the acquisition of the Customer Information
Management System (CIMS) business unit from Acxiom(R) Corporation in the second
quarter and the build up of infrastructure to meet the anticipated needs of
rapid business expansion. The $1,034,000 sales backlog for the second quarter
included $552,000 in contracts and $482,000 in deferred revenues.
The Company reported revenues of $956,000 for the six months ended June 30,
2000, compared to $198,000 a year ago. The loss for the six months ended June
30, 2000 was $4,448,000 or $0.17 per share, as compared to $2,997,000 or $0.14
per share for the six months ended June 30, 1999.
Bill Williams, Chief Financial Officer, commented, "SEDONA's balance sheet shows
a cash position ahead of plan at $5,950,000 at the end of June 2000. Also, we
were able to complete the registration of $50 million of SEDONA securities with
the Securities and Exchange Commission in the second quarter. These securities
may be offered and sold, depending on market conditions, from time to time as
needed to fund SEDONA's expansion plans or for other appropriate corporate
purposes."
About SEDONA Corporation...
SEDONA Corporation (NASDAQ: SDNA) delivers Customer Relationship Management
(CRM) solutions that help small-to-mid-sized financial services companies, and
etailers to personalize their customer interactions and to uncover otherwise
unknown sales opportunities. SEDONA enables its own clients to obtain more
qualified and profitable customers as well as retain and optimize the
relationships with current customers. SEDONA is based outside Philadelphia and
can be reached at www.sedonacorp.com or 1-800-815-3307.
Forward Looking Statements...
Statements made in this news release that relate to future plans, events or
performances are forward-looking statements. Any statement containing words such
as "believes" "anticipates" "plans" or "expects" and other statements which are
not historical facts contained in this release are forward-looking, and these
statements involve risks and uncertainties and are based on current
expectations. Consequently, actual results could differ materially from the
expectations expressed in these forward-looking statements.
(more)
<PAGE>
SEDONA REPORTS/4
TELECONFERENCE: SEDONA will hold a Teleconference at 10:00 a.m. - EDT on
Thursday, August 3, 2000 for interested investors, analysts, and portfolio
managers. To take part in the Teleconference, dial 1-888-550-5969 (Domestic) or
1-908-228-5000 (International) about 5 to 10 minutes prior to 10:00 a.m. and ask
for the "SEDONA Teleconference". You will then hear a presentation by Marco
Emrich, President and CEO of SEDONA.
There will be a Q&A period following Mr. Emrich's presentation.
--------------------------------------------------------------------------------
REPLAY: For those unable to participate in the "live" teleconference, a replay
will be made available from about 2:00 pm-EDT on August 3, 2000 to 11:59 pm
Friday, August 11, 2000. To take part in the replay, please dial:
1-888-892-2890 (Domestic)
1-815-399-3299 (International).
This call will also be available as a listen-only webcast at www.vcall.com.
# # #
--------------------------------------------------------------------------------
SEDONA is a registered trademark and Intarsia is a trademark of SEDONA
Corporation.
This press release and prior releases are available on the SEDONA Corporation
Website at www.sedonacorp.com.
