New Fair Isaac Technology Brings Power of Precision Marketing to Retailers

NEW YORK – Fair Isaac Corporation (NYSE: FIC), the leading provider of analytics and decision technology, today introduced a groundbreaking analytic marketing technology at the National Retail Federation Annual Convention and EXPO in New York City. Specifically designed for the retail industry, the new technology will provide retailers with an unprecedented level of insight into what their customers are most likely to want and need next, and empower them to create highly individualized customer shopping experiences.

Unlike analytic approaches currently available to retailers, Fair Isaac’s new Peacock solution (short for Pairwise Co-occurrence Consistency) gives retailers a complete understanding of which customer transactions trigger the purchase of additional items and at what point in time, enabling them to generate targeted, customer-centric marketing decisions that motivate those related purchases. Peacock analyzes large-scale customer purchase transaction data to reveal the complex relationships between consistent product combinations that customers buy and the context in which they buy them, such as the timing of purchases.

“Most retailers focus the use of analytics on single market baskets, or sets of products,” said Joe Paulsen, vice president of Fair Isaac’s Precision Marketing group. “The introduction of Peacock paves the way to true customer centricity by applying Fair Isaac’s advanced analytics to analyze the entire purchase career paths of the customer. This valuable insight enables retailers to organize everything they do around the individual customer’s shopping experience and loyalty.”

Fair Isaac’s Peacock solution integrates the key retail dimensions that impact customer buying behavior — the products, promotions and prices — and finds useful patterns across these dimensions. New product associations are used to segment customers into meaningful groups that indicate specific lifestyle and life event-related buying tendencies that are often overlooked, and to track customers as they move from one segment to another over a period of time.

With Peacock, retailers will be able to determine optimal in-store product placement and product inventory for each store; turn information into effective cross-sell and up-sell offers that meet the customer’s individual preferences; and shape the customer’s buying behavior by bundling and bridging products from multiple departments.

Using data from one of the nation’s largest retailers, pilot tests have demonstrated impressive results. For example, product and product category cross-sell recommendations from Peacock analytics resulted in up to 50 percent cross-sell rate versus 5 percent for random cross-sell recommendations.

“With Peacock, we combine customer transaction data with next-generation data-mining, statistical and mathematical technologies to give retail businesses a groundbreaking analytic solution,” said Jane Johnson, vice president of the retail practice for Precision Marketing at Fair Isaac. “We believe the technology will have a significant impact on large retailers looking to grow their revenues and improve their profit margins.”

About Fair Isaac
Fair Isaac Corporation is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company’s predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power billions of mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, consumer packaged goods companies, telecommunications providers, healthcare organizations, and government agencies. Through the www.myfico.com Web site, consumers use the company’s FICO® scores, the standard measure of credit risk, to manage their financial health. For more information, visit www.fairisaac.com.

Fair Isaac Statement Concerning Forward-looking Information – Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac, including statements regarding its new Peacock technology offering and the benefits to be derived from this offering, 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 are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation, use and functionality of the offering, the risks that customers will not perceive material benefits from the offering, failure of the product to deliver the expected results, the possibility of errors or defects in the offering, regulatory changes applicable to the use of consumer credit and other data, and other risks described from time to time in Fair Isaac’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2004. Forward-looking statements should be considered with caution. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac’s results could differ materially from Fair Isaac’s expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.