CONTACT INFORMATION

Group 1
www.g1.com

LANHAM, MD., July 2, 2002 - Group 1 Software (Nasdaq: GSOF), a leading provider of customer relationship management (CRM)-enabling software solutions, today announced the latest release of its HotData hosted data quality service. Most significantly, HotData now incorporates all of Group 1's industry leading data quality and enrichment technology for Web-based cleansing and updating of customer data in CRM applications and databases. The newest additions to the database component of HotData include international address verification, geographic intelligence and tax jurisdiction assignment. HotData enhances CRM and e-business applications by delivering the in-depth customer, prospect, and business information necessary for successful targeted marketing campaigns.

For users of HotData's database component, the new "smart reconcile" feature returns up to ten possible matches when matching business records. The returned data includes a score indicating the degree to which the information matches the external global business database. Consequently, users have the flexibility to determine the confidence level at which matches are accepted. HotData now also offers a refresh interval feature, through which users can control how long records remain in databases before being sent again to HotData for updating.

Businesses utilizing HotData for real-time data quality have added security capabilities through the incorporation of RSA Security's industry-standard encryption technology. Additionally, real-time users now have the flexibility to send requests to HotData in the most popular programming languages, including C++, Java, Com, and XML.

"This release of HotData enables us to offer via hosted service our traditional data quality and enhancement software solutions for use in real-time or batch mode," said Bob Bowen, CEO of Group 1 Software. "By making available a variety of new features that offer both flexibility and power, we have extended our leadership position in the online data quality market."

"Enterprises increasingly are recognizing that data quality software can provide tremendous value to enterprise applications and data warehouses," said Doug Laney, META Group vice president. "Our research indicates that real-time data quality engines are superior in the ability to prevent specious data from entering an enterprise's information supply chain and thereby polluting its information assets. In particular, at point-of-interaction this can dramatically improve the performance and effectiveness of downstream customer-related business processes and applications. Moreover, online data quality solutions can offer data enrichment capabilities that augment information's value beyond merely cleansing it."

HotData verifies, corrects and/or formats addresses for over 220 countries and dependencies worldwide, helping to ensure deliverability, provide substantial operational savings and enhance customer relationships. Additionally, HotData provides enriched business and geographic profiles, contributing to increased sales and customer loyalty through improved target marketing. The hosted service also offers change of address and area code updating, helping users keep valuable customer data current and actionable.

About Group 1 Software:
Group 1 Software is a leading provider of customer relationship management (CRM)-enabling software solutions for data quality, customer communications management, marketing automation and direct marketing applications. Group 1's software systems and services enable over 2,000 customers worldwide to market smarter by helping them find, reach and keep customers. Founded in 1982 and headquartered in Lanham, Maryland, Group 1's solutions are utilized by leaders in the financial services, banking, retail, telecommunications, utilities, e-commerce, and insurance industries. The company's customer base includes such recognized names as Acxiom, AT&T, Charles Schwab, Entergy, GEICO, L.L. Bean, Wal-Mart and Wells Fargo. For more information about Group 1, visit the company's Web site at www.g1.com.

# # #