eGain Provides Preliminary Selected Financial Results for the Fourth Fiscal Quarter and Fiscal Year Ended June 30, 2009

MOUNTAIN VIEW, CA, Jul 30 (MARKET WIRE) --
eGain Communications Corporation (OTCBB: EGAN), a leading provider of
customer service and contact center software, today announced preliminary
financial results for the fourth fiscal quarter and fiscal year ended
June 30, 2009.

Q4 Fiscal Year 2009 Selected Preliminary Financial Results

-- The company currently expects to report total revenues of between $8.2
million and $8.7 million for the quarter ending June 30, 2009, an estimated
increase of 23% to 30% from the prior year.
-- The company currently expects to report new hosting and license
bookings(1) of approximately $4.3 million for the quarter, an estimated
increase of 246% from the prior year.
-- The company currently expects to report income from operations of
between $700,000 and $1.2 million for the quarter, compared to an operating
loss of $1.4 million in the comparable year ago quarter.

Fiscal Year 2009 Selected Preliminary Financial Results

-- The company currently expects to report total revenues of between
$32.5 million and $33.0 million for the year ending June 30, 2009, an
estimated increase of 8% to 10% from the prior year.
-- The company currently expects to report new hosting and license
bookings(1) of approximately $15.0 million for the year, an estimated
increase of 63% from the prior year.
-- The company currently expects to report income from operations of
between $2.5 million and $3.0 million for the year, compared to an
operating loss of $2.6 million in the prior year.
-- The company currently expects to report a cash balance of $7.3 million
at June 30, 2009, up from $3.8 million at June 30, 2008.

These results are based on preliminary information and are subject to
change. The company plans to announce final results after completion of
their annual audit.

(1) New Hosting and License Bookings is a non-GAAP measure we define as
new contractual commitments (excluding renewals) received by the company
for the purchase of product licenses and hosting services. Such contracts
are not cancelable for convenience but may be subject to termination by
our customers for cause or breach of contract by us. Furthermore, because
we offer a hybrid delivery model, the mix of new license and hosting
business in a quarter could also have an impact on our revenue in a
particular quarter. Due to effects that these trends have on our
short-term revenue and profitability, we believe that, in addition to the
information contained in the GAAP presentation of financial information,
it is useful to disclose New Hosting and License Bookings detail in this
and future financial releases. We internally use this metric to focus
management on the productivity of the sales team and period-to-period
changes in our core business. Therefore, we believe that this information
is meaningful and helpful in allowing individuals to better assess the
ongoing nature of our core operations. The presentation of this
additional non-GAAP financial information is not intended to be
considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP.

About eGain Communications Corporation

eGain (OTCBB: EGAN) is a leading provider of multichannel customer service
and knowledge management software for in-house or on-demand SaaS
deployment. For more than a decade, several of 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(TM),
the concept of one unified platform for multichannel customer interaction
and knowledge management, these hubs enable dramatically improved
customer experience, contact center agent productivity, service process
efficiencies, sales, and overall contact center performance. 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).

Cautionary Note Regarding Forward-looking Statements

All statements in this release that involve eGain's plans, forecasts,
beliefs, projections, expectations, strategies and intentions, including
but not limited to our financial estimates, are forward-looking statements
within the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements, which are
based on information available to eGain at the time of this release, are
not guarantees of future results; rather, they are subject to risks and
uncertainties that may cause actual results to differ materially from
those set forth in this release. These risks include, but are not limited
to, the uncertainty of demand for eGain products, including our guidance
regarding bookings and revenue; the actual mix in new business between
hosting and license transactions when compared with management's
projections; volatility of the value of certain currencies in relation to
the US dollar, particularly the U.K. pound, Indian rupee and Euro; the
increased complexity of certain transactions and the timing of revenue
recognition on such transactions; and other risks detailed from time to
time in the Company's filings with the Securities and Exchange
Commission, including the Company's annual report on Form 10-K filed on
September 29, 2008, and the Company's quarterly reports on Form 10-Q.
eGain assumes no obligation to update these forward-looking statements.

Note: eGain is a registered trademark, and the other eGain product and
service names appearing in this release are trademarks or service marks,
of eGain Communications Corp. All other company names and products are
trademarks or registered trademarks of their respective companies.

Company Contact:
Jamie Abayan
650-230-7532
PR@eGain.com

Investor Contact:
IRegain@eGain.com

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