eLoyalty Announces Cost Reductions


LAKE FOREST, IL--(Marketwire - October 30, 2008) - eLoyalty Corporation (NASDAQ: ELOY), a leading enterprise customer relationship management services and solutions company, today announced additional cost reductions made in the third and fourth quarter of 2008. Key cost reduction actions that have been made include:

--  Decreasing the leased space at its headquarters facility
--  Eliminating a number of administrative positions
--  Reducing Service Line overhead
    

These cost reduction actions are expected to reduce costs by approximately $600 thousand in the fourth quarter as compared to the third quarter, and approximately $3.0 million on an annual basis. eLoyalty will use the cash generated by these cost reductions to improve its financial performance and to hire additional Behavioral Analytics™ business development resources.

About eLoyalty

eLoyalty helps its customers achieve breakthrough results with revolutionary analytics and advanced technologies that drive continuous business improvement. With a long track record of delivering proven solutions for many of the Fortune 1000, eLoyalty's offerings include the Behavioral Analytics™ Service, Integrated Contact Solutions and Consulting Services, each of which enables focused business transformation.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and other matters that are not strictly historical in nature. These forward-looking statements are based on current management expectations, forecasts and assumptions, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. The risks, uncertainties and other factors that might cause such a difference include those described under "Forward-Looking Statements" and "Risk Factors" in eLoyalty's Form 10-K, Form 10-Q and other filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. They reflect opinions, assumptions and estimates only as of the date they are made, and eLoyalty Corporation undertakes no obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or circumstances or otherwise.

Contact Information: Contact: eLoyalty Corporation Chris Min Vice President and Chief Financial Officer (847) 582-7222