October 16, 2002

News Release: Closes Record-Breaking Quarter; Deals Signed Worth Over Five Million Dollars

Front Porch Digital Inc. (FPDI OTC-BB) announced that it has closed its most successful quarter to date. For the quarter ending September 30, 2002, Front Porch Digital closed deals in excess of five million dollars including data migration service contracts and product sales of VAST, DIVArchive and BitScream.

Front Porch Digital's revenue base continues to expand through both new and returning customers. Third quarter sales included reseller deals with Kodak, CEI, StorageTek, NDT and Magna and a direct relationship with a large global financial institution to provide media services. Through our resellers, third quarter deals were closed in three different industry verticals. In the medical field, Kodak resold our technology to Reinier de Graaf, a hospital in Holland. In the financial world, StorageTek acted as a reseller on a data services contract with a large global financial corporation. In the broadcast community, CEI, acting as the system integrator, is implementing our technology at a major broadcast company in the US; NDT resold our technology to CCTV in China; and Magna Systems, acting as the system integrator, is utilizing our software for an implementation at Omni Labs in Australia.

'The overwhelming success of our products, including DIVArchive(TM) and BitScream(R), has helped to increase our revenues dramatically and continues to attract new opportunities,'said Tom Sweeney, Chairman of the Board. 'We believe that the expanding awareness of our products through reseller recommendations and word-of-mouth referrals are a true measure of the acceptance of our technology.'

'We are encouraged by the significant increase in demand for our products and services,'said Don Maggi, CEO of Front Porch Digital. 'We are also excited that, during the past quarter, we were able to close numerous deals in the financial, medical and broadcasting industries to produce our most successful quarter to date.'

About Front Porch Digital: Front Porch Digital Inc. (http://www.fpdigital.com) is transforming the digital world by developing unique software and services that convert audio, video, images, text and data into digital formats that enable searching, browsing, editing, storage and on-demand delivery of content in nearly any other digital format through a single capture. To join Front Porch Digital's investor e-mail list, please complete the form found at http://www.fpdigital.com/html/e-mail_notification.html.

Front Porch Digital Forward-Looking Statements: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect Front Porch Digital's current views with respect to future events and financial performance. Such statements are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated from such forward-looking statements. The potential risk factors include Front Porch Digital's limited operating history and experience in the data and video digital conversion business, Front Porch Digital's ability to attract significant additional financing and incur operational losses and negative cash flow, and risks associated with expansion. Additional risk factors are set forth in Front Porch Digital's reports and documents filed with the Securities and Exchange Commission.

TRADEMARKS: All products or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

CONTACT: TEL: (646) 336-0366 Mary S. Park

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