SPSS Inc.

233 S. WACKER DRIVE

CHICAGO, ILLINOIS 60606
(312) 651-3000
www.spss.com

Data Mining - Category Directory

CRM - Category Directory

Business Intelligence - Category Directory

Sales

$208 million

Business Description

MARKETS

SPSS targets the following markets defined by International Data
Corporation (IDC) in its research reports entitled Worldwide Business
Intelligence Forecast and Analysis, 2003-2007 and Worldwide Customer
Relationship Management Analytic Applications Software Forecast and Analysis,
2003-2007:

- The global market for statistical and technical analysis software, which
was approximately $468 million in size in 2002 and in which SPSS held a
market share of approximately 20%. IDC estimates that this market will
increase by approximately 3.5% a year and reach approximately $556
million in size by 2007.

- The global market for data mining tools, which was approximately $486
million in size in 2002 and in which SPSS held a market share of
approximately 5%. IDC estimates that this market will increase by
approximately 7.5% a year and reach approximately $697 million in size by
2007.

- The global market for analytical customer relationship management (aCRM)
applications, which was approximately $794 million in size in 2002 and in
which SPSS held a market share of approximately 4%. IDC estimates that
this market will increase by approximately 12.9% a year and reach
approximately $1.5 billion in size by 2007.

These target markets combined to total approximately $1.7 billion in
revenues in 2002 with SPSS holding a share of approximately 9%. IDC estimates
that these SPSS target markets will combine to total approximately $3.0 billion
in revenues by 2007. To more effectively increase its overall market share, SPSS
plans to leverage its strong position in the statistical and technical analysis
software market to increase its presence in the related larger and higher-growth
market sectors.

OFFERINGS

 SPSS provides its predictive analytical technology as tools for research
analysts and applications for business users.

SPSS software tools enable customers to access and prepare data for
analysis, develop and deploy predictive models, and generate reports and graphs
to present the results. In general, the Company's software tools are:

- Comprehensive in function, spanning the entire process of data analysis;

- Modular, allowing customers to purchase only the functionality they need;

- Integrated, enabling the use of various parts of the SPSS technology in
combination to tackle particularly complex problems;

- Tailored to desktop operating environments for greater ease-of-use,
including browser-based environments for the delivery of results;

- Available on most popular computing platforms; and

- For some products, translated and localized for use in France, Germany,
Italy, Poland, Japan, Taiwan, Korea, China, and Spanish-speaking
countries.

Statistics Family. The Company's primary statistical tools are part of its
flagship SPSS product line. These tools are modular in nature and designed for
use by research analysts working in a wide variety of commercial, governmental,
and academic organizations. While varying by version and computing platform, a
typical purchase from the SPSS product line includes an SPSS Base product and
related optional add-on modules. The SPSS Base includes the user interface, data
connectivity, data editing, reporting, graphing, and general statistical
capabilities. Add-on modules require the SPSS Base to operate and become
seamlessly integrated with SPSS Base upon installation. These optional offerings
usually provide additional statistical functionality specific to particular
types of analysis.

Data Mining Family. The Data Mining Family consists of the Clementine data
mining workbench, LexiQuest analysis tools for text mining, and AnswerTree for
decision tree analysis. These products are differentiated from the Statistics
Family primarily by their process-oriented visual user interfaces and their
inclusion of artificial intelligence-based algorithms.

The Clementine product line offers advanced analytical capabilities
for a variety of data mining applications in desktop and distributed
computing environments. The user interface of Clementine provides a visual
view of the entire analysis process, enabling the user to easily
incorporate their business knowledge with data to develop predictive models
and capture all of the steps in one picture. This picture can then be used
as a template to build specific business applications (Clementine
Application Template) and predictive models to apply to operational systems
with the Clementine Solution Publisher. The SPSS and Clementine product
lines can be used together to gain additional data transformation and
statistical functionality.

The LexiQuest product line is designed to organize and mine
unstructured text data. The LexiQuest product line consists of LexiQuest
Categorize and LexiQuest Mine. LexiQuest Categorize automates the process
of organizing documents into logical categories and is currently used to
quickly organize information delivered through web portals. LexiQuest Mine
is a linguistics-based text mining tool that creates new insights by
rapidly identifying key concepts and the relationships between them across
thousands of sources, such as documents, news feeds, and the Internet. The
LexiQuest Mine technology is now integrated with the Clementine product
line to provide the combination of data and text mining capabilities.

The AnswerTree product line reveals distinctive segments in data using
decision tree algorithms. AnswerTree is available in both a single-user
desktop version as well as the highly scalable client-server
implementation.

Business Intelligence Family. The Business Intelligence Family consists of
the Strategy product line and OLAP Hub offering. Strategy products support
information access, data warehousing, data management, on-

line analytical processing (OLAP), and other analytical applications for the IBM
eServer iSeries (AS/400) computer market. OLAP Hub is a zero-client on-line
analytical processing (OLAP) product technology for viewing data stored in the
Microsoft Analysis Services within the SQL Server database.

APPLICATIONS

Analytical applications provide pre-defined access to the data required for
particular business problems and interfaces that guide users through the related
analysis processes. SPSS analytical applications include:

PredictiveMarketing, which seamlessly integrates with marketing automation
software from other vendors to provide predictive capability to business users
in their management of marketing campaigns. PredictiveMarketing has pre-packaged
data mining models designed for specific tasks, such as customer acquisition or
retention, and allows the user to modify these models and then insert the
calculated predictive scores into the customer's data warehouse. The recently
acquired DataDistilleries application software will be integrated into the
PredictiveMarketing offering to advance its capabilities, particularly in
real-time scoring and prediction.

NetGenesis is an analytical application that describes visitor behavior on
Web sites. By processing on-line information through its rule-based importer to
create a customer behavioral data mart, NetGenesis identifies content that
brings visitors the most value and measures site overall effectiveness. This
application has also been integrated with Clementine to create the SPSS
Predictive Web Analytics offering.

Dimensions is a robust technology platform that supports the complete
end-to-end survey process for firms in the market research industry. Dimensions
provides seamless and efficient work processes around surveys, easier analysis
of data, and more dynamic means of delivering results to clients. Dimensions
combines the strengths of the Quantime, In2itive, and Surveycraft product lines
and will gradually replace these offerings.