eGain Placed in the Leaders Quadrant of the 2008 eService Suites Magic Quadrant

MOUNTAIN VIEW, CA--(Marketwire - October 17, 2008) - eGain Communications Corporation (OTCBB: EGAN), a leading provider of multichannel customer service and knowledge management software on-premise or on-demand, announced today that it has been placed in the Leaders Quadrant by Gartner, Inc. in the "Magic Quadrant for E-Service Suites 2008" report, authored by Johan Jacobs and Michael Maoz, October 14, 2008.

Gartner defines Magic Quadrant leaders as companies that "demonstrate market-defining vision and the ability to execute against that vision through products, services, demonstrable sales figures and solid new references for multiple geographies and vertical industries. Leaders provide functionally diverse and rich e-service suites that can be deployed and supported globally and have at least five of the six e-service components supported by OEMs. They are suitable for all sizes and complexities of enterprise, and have broad industry coverage. Revenue is strong, and new references are readily available. When asked, their clients reply that this product has affected the organization's competitive position in the market."

In addition, the report states, "An organization's manner of interacting with customers on the Internet is evolving from single-channel and nonintegrated (for example, e-mail only) instances to multichannel, preintegrated instances (for example, e-mail, chat and virtual assistants). There is a slow but gradual move to the concept of the customer interaction hub."

eGain Service™, available on-premise or on-demand, is the industry's most comprehensive customer interaction hub (CIH) software suite that includes award-winning applications for call tracking and resolution, knowledge management, multimodal web self-service, email management, chat, web collaboration, notifications, service fulfillment and more.

"eGain is a pioneer with a decade-long history of innovation in the customer service and knowledge management arena," said Ashu Roy, Chairman and CEO of eGain. "We are honored to be positioned in the leaders quadrant by Gartner in the Magic Quadrant report, which I see as an acknowledgement of our track record."

About the Magic Quadrant

The Magic Quadrant is copyrighted 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About eGain

eGain (OTCBB: EGAN) is a leading provider of customer service and contact center software for in-house or on-demand deployment. For more than a decade, the world's largest companies have relied on eGain to transform their traditional call centers, help desks, and web customer service operations into multichannel customer interaction hubs. Based on the Power of One™, the concept of one unified platform for multichannel customer interaction and knowledge management, these hubs enable dramatically improved customer experience, end-to-end service process efficiencies, increased sales, and enhanced contact center performance.

Headquartered in Mountain View, California, eGain has an operating presence in 18 countries and serves more than 800 enterprise customers worldwide. To find out more about eGain, visit www.eGain.com or call the company's offices: 800-821-4358 (US headquarters), 1753-464646 (UK and Continental Europe).

eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Communications Corp. in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies.

Contact Information: eGain media contact: Connie Pheng Phone: 650-230-7449 Email: cpheng@egain.com