BELLEVUE, Wash. - Onyx® Software (NASDAQ: ONXS) today issued the following statement in response to an announcement by Microsoft Corporation (NASDAQ: MSFT) that it will enter the Customer Relationship Management (CRM) software market:

Microsoft Great Plains' future entry into the CRM market will clearly be targeted at small businesses and small mid-market companies. As such, Onyx believes Microsoft's market entrance will have little or no impact on Onyx, its market position or its existing partnership with Microsoft.

While most analysts agree the majority of the CRM spending will continue to occur in the medium and large enterprise markets, Microsoft's entry does represent validation of the overall CRM industry, and the market opportunity it represents across all segments. Increasingly, companies of all sizes see CRM technology as a key enabler for improving how they find, sell to and service their customers.

Onyx does not believe Microsoft Great Plains' entry into the small business CRM market will impact the strong relationship that exists between the two companies. In addition to collaborative work with various technologies, products, and divisions, the two companies have multiple sales, marketing and development initiatives underway to deliver CRM solutions to medium and large enterprises. Onyx believes the partnership between Onyx and Microsoft will continue to provide benefits to the companies' joint customers and to each other.

While Onyx anticipates little or no impact to itself, the company believes a successful entry into the small business CRM market by Microsoft Great Plains may affect the low-end CRM vendors sometime in the future.

About Onyx Software
Onyx Software Corp. (Nasdaq: ONXS) is a global supplier of customer relationship management (CRM) enterprise applications that power a company's entire business world, connecting sales, marketing and service organizations with customers, prospects and partners. Through an innovative mix of Internet technology, strategic services and customer commitment, Onyx helps companies create the seamless, branded customer experiences they need to forge competitive advantage and build real business value. Its reliable, scalable, flexible, holistic solutions enable companies to attract, acquire and retain customers and partners across all channels and touch points. Onyx customers include American Express, Broadwing, Commerce One, Credit Suisse, Dreyfus, Prudential Investments and The Regence Group. Get more information at 888-ASK-ONYX, or email info@onyx.com.

This press release contains forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Factors that could affect Onyx's actual results include, but are not limited to, the impact of Microsoft's market entrance on Onyx, the benefits resulting from the partnership between Onyx and Microsoft, and the "Important Factors That May Affect Our Business, Our Results of Operations and Our Stock Price" described in our quarterly report on form 10-Q for the period ending September 30, 2001. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Onyx undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Onyx is a registered trademark of Onyx Software Corporation in the United States and other countries. Other product or service names mentioned herein are the trademarks of their respective owners.

Contact:

Bob Craig Onyx Software 617-314-6846

Rosemary Moothart Investor Relations Director Onyx Software (425) 519-4068

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MEDIA CONTACTS

Americas / Corporate Headquarters Mitch Briggs Public Relations Coordinator Consona Corporation Telephone: 317.249.1620 Mobile: 317.829.4210 Europe, Middle East, Africa Richard Furby Managing Director, Onyx UK Telephone: +44 (0) 1344 322 199 Fax: +44 (0) 1344 489 035 Japan Daisuke Sawamura Director, Professional Services Telephone: +81 03 5215 7311