etalk Reports Record Revenue Growth And Positive Cash Flow In 2003

Irving, TX - February 9, 2004 - etalk Corporation, the global leader of Performance Impact™ solutions for contact centers, today announced it achieved record revenue growth and positive cash flow in 2003, and is attributing the increase to its accelerated global software and service sales.

Last year, etalk implemented more than 550 Quality Management Systems that helped deliver strong earnings from operations for the year. In addition, product license revenues grew 29 percent over 2002. The increase in both revenues and profitability signal a strong financial performance in 2003 -- a milestone year for the company as it reached its 20-year anniversary.

“The momentum gained in 2003 has allowed etalk to build a strong backlog of orders going into 2004 equivalent to two quarters of 2003 revenues,” said Timothy Barker, chief financial officer of etalk. “These new orders stem from key vertical market segments that purchase quality monitoring solutions, including financial services, telecommunications, health care, and technology.”

Also in 2003, etalk increased its new order revenues with 22 percent of orders coming from customers new to etalk. It also increased its worldwide reseller partner program by adding 10 new partners. By shifting its total percentage of customers that have more than 10 multi-site locations to more than 50 percent, etalk has solidified its foothold on the enterprise-class market of Quality Management solutions.

“This past year has been phenomenal for etalk in terms of the level of traction we gained in expanding our global customer base, and the positive financials achieved from the diligent management of our operations,” said Scott Shute, president and chief executive officer of etalk. “Our financial performance, coupled with our recent recapitalization resulting in a debt-free balance sheet, readies the company to achieve the higher goals we have planned for this year.”

In 2004, etalk plans to continue to enhance the scalability of its solutions architecture, which makes it easier to share and integrate quality monitoring data across multiple contact center locations. The company also expects continued growth driven in large part from new orders of Qfiniti® Systems, which takes a centralized approach to managing quality monitoring programs and is geared to meet the requirements of both IT managers and business decision-makers.

“We understand that today´s sale is not just about demonstrating technological value that makes running the day-to-day functions of a contact center easier and less time consuming. It´s also about streamlining costs and delivering a strong return on investment,” said Roger Woolley, vice president of marketing for etalk. “So while we continue to upgrade and accelerate product development on the IT side of the business, providing customers with emerging features such as VoIP, we will be balancing this with a careful eye to ensure our products deliver savings that impact the bottom line.”

About etalk
etalk is a global leader of Maximum Performance Impact trade; solutions for enterprise contact centers. Since its inception in 1983, etalk solutions have been used to build valuable long-term customer relationships at more than 1,500 worldwide contact centers. The etalk suite of integrated solutions, including the Qfiniti trade;, JASS trade;, Recorder reg;, Advisor trade;, Expert trade; and Survey trade;, improve both customer service and the CRM decision-making process. Using his combination of etalk acute;s award-winning products and outstanding services, customer can design, implement and continually refine their quality program initiatives, achieving their overall business objectives. etalk operates in more than 40 countries through its Worldwide Business Partner Program. For more information, contact etalk at www.etalk.com.