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                                                                    EXHIBIT 99.1


Contact:
Timothy Cunningham
eLoyalty Corporation
(847) 582 7000
ir@eloyalty.com


                    eLoyalty Announces Significant Financing
       Existing stockholders to invest up to $25 million in new financing

Lake Forest, IL, September 24, 2001 - eLoyalty Corporation, a leading enterprise
CRM services company (NASDAQ: ELOY), today announced that it has entered into an
agreement for a Private Placement of up to $25 million with two current
investors, Technology Crossover Ventures and Sutter Hill Ventures. In connection
with this transaction, eLoyalty's Board of Directors has authorized a
shareholder Rights Offering to enable other shareholders to maintain their
approximate ownership percentage in the company. The total amount of proceeds is
dependent upon the actual participation in the Rights Offering, however
eLoyalty's goal is to raise between $20 million and $30 million through these
transactions. In addition, eLoyalty's Board has authorized an adjustment to the
current share count through a 1:10 Reverse Stock Split to rationalize the
company's capital structure going forward. These transactions are subject to
approval by stockholders.

"We believe that eLoyalty has strong future potential based on our knowledge of
the company and the due diligence we recently performed," commented Jay Hoag,
General Partner at Technology Crossover Ventures. "We are confident in the CRM
market and in eLoyalty's ability to leverage this opportunity to grow its
leadership position in the strategic area of customer relationships. It is
unfortunate that tax limitations may prevent Technology Crossover Ventures and
Sutter Hill Ventures from investing the full $25 million we have committed to
invest."

"We have great clients and talented employees and based on our future prospects
we are pleased to raise additional capital," commented Kelly D. Conway,
President and CEO of eLoyalty. "The investment, particularly in today's tough
market environment, is a strong vote of confidence in the company and enables us
to strengthen the balance sheet. By bolstering eLoyalty's fundamentals, the
company is in a strong position to achieve future profitable growth."

STRUCTURING OF THE FINANCING TRANSACTIONS

eLoyalty became public as the result of a tax-free 100% spin-off from Technology
Solutions Company (TSC). With this background in mind, eLoyalty and its
investors have structured the financing transactions to maximize the amount of
capital raised in the Private Placement while preserving the tax-free status of
its spin-off from TSC. In addition, eLoyalty's Board of Directors felt strongly
that each shareholder should have the opportunity to maintain his or her
approximate current ownership percentage in eLoyalty and thereby minimize the
potential dilution from the Private Placement.

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PRIVATE PLACEMENT

Technology Crossover Ventures has agreed to invest up to $15 million and Sutter
Hill Ventures has agreed to invest up to $10 million in eLoyalty preferred stock
as part of a Private Placement. As a result of the tax restrictions, the maximum
amount they would be able to invest (without a Rights Offering) would be
approximately $11 million. By issuing shares in the Rights Offering, eLoyalty
will be able to increase the size of the Private Placement. The actual amount
that Technology Crossover Ventures and Sutter Hill Ventures will be able to
invest in the Private Placement is subject to several variables, including the
purchase price of the preferred stock and the number of shares issued in the
Rights Offering. Depending on the outcome of these variables, the company would
be able to generate proceeds of up to $25 million in the Private Placement.

RIGHTS OFFERING

In order to give stockholders the opportunity to avoid dilution from the Private
Placement, eLoyalty's Board of Directors has authorized a Rights Offering. The
Rights Offering is a distribution of rights on a pro-rata basis to all
shareholders of eLoyalty's common stock on the record date, which has been set
for October 8, 2001. The October 8th, 2001 record date is conditioned on
eLoyalty's ability to distribute the rights by December 7, 2001, which is
subject to effectiveness of the registration statement eLoyalty has filed with
the SEC for the rights offering. Each right entitles the holder to purchase
shares of preferred stock in eLoyalty subject to certain conditions described in
the Form S-3 filed today with the Securities and Exchange Commission. The Rights
Offering has been structured to allow stockholders to maintain, but not
increase, their approximate percentage ownership in eLoyalty and to purchase the
same class of preferred stock at the same price as Technology Crossover Ventures
and Sutter Hill Ventures. Due to the tax restrictions, Technology Crossover
Ventures and Sutter Hill Ventures are not able to purchase preferred stock in
the Rights Offering.

PREFERRED STOCK

The shares offered in both the Private Placement and the Rights Offering will be
a new series of preferred stock. The per share purchase price of the preferred
stock will be the lower of $0.51 or 90% of the average last sale price of
eLoyalty's common stock for the 20 trading days prior to the fourth trading day
before the closing, subject to adjustment for the Reverse Stock Split. Each
share of preferred stock will accrue dividends at a rate of 7% per annum, will
be entitled to a preference upon liquidation, and will be convertible into
shares of common stock on a one for one basis.

The Private Placement and the Rights Offering are conditioned upon one another.
The Private Placement is also conditioned upon the Reverse Stock Split and
certain other closing conditions specified in the share purchase agreement for
the Private Placement. The Private Placement, Rights Offering and Reverse Stock
Split are also subject to stockholder approval. The Private Placement and Rights
Offering are described in the Form S-3 filed today with the SEC.

OFFER TO EXCHANGE STOCK OPTIONS FOR RESTRICTED STOCK

To retain eLoyalty's valuable talent and to re-align employee interests to build
shareholder value going forward, eLoyalty's Board of Directors has also approved
an

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offer to exchange employee stock options for restricted stock. The company
intends to offer up to an estimated 6.5 million shares of restricted stock in a
one for one exchange for outstanding employee stock options with an exercise
price of $3 or more. The restricted stock will vest over a 5-year period and
will be accounted for over that period as a fixed charge based on the price of
eLoyalty's common stock on the date the exchange is completed. The company
expects that the offer will be completed in early November 2001.

eLoyalty management will host a conference call tomorrow, Tuesday September 25,
2001 at 8:00 a.m. EDT. The conference call will be available live via the
Internet at the Investor Relations section of eLoyalty's web site at
www.eloyalty.com. It is recommended that participants using the web, access the
site at least fifteen minutes before the conference call begins, to download and
install any necessary audio software. The call can also be heard on StreetEvents
at www.streetevents.com. For those who cannot access the live broadcast, a
replay of the conference call will also be available until midnight on October
2, 2001 by dialing (888) 509-0082, or for international callers, (416) 695-9731.
There is no pass code for the replay.

A REGISTRATION STATEMENT RELATING TO THE SECURITIES OFFERED IN THE RIGHTS
OFFERING HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, BUT HAS NOT
YET BECOME EFFECTIVE. THESE SECURITIES MAY NOT BE SOLD, NOR MAY OFFERS TO BUY BE
ACCEPTED, PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS
PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN
OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE IN
WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION
OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.

THE DESCRIPTION OF THE EMPLOYEE OPTION EXCHANGE CONTAINED HEREIN IS NEITHER AN
OFFER TO PURCHASE NOR A SOLICITATION OF AN OFFER TO SELL SECURITIES OF eLOYALTY
CORPORATION. AT THE TIME THE OFFER TO EXCHANGE IS COMMENCED, eLOYALTY
CORPORATION WILL FILE A TENDER OFFER STATEMENT WITH RESPECT TO THE OFFER. THE
TENDER OFFER STATEMENT (INCLUDING AN OFFER TO EXCHANGE, A RELATED ELECTION FORM
AND OTHER OFFER DOCUMENTS) WILL CONTAIN IMPORTANT INFORMATION THAT SHOULD BE
READ CAREFULLY BEFORE ANY DECISION IS MADE WITH RESPECT TO THE OFFER.

THE OFFER TO EXCHANGE, THE RELATED ELECTION FORM AND CERTAIN OTHER DOCUMENTS
WILL BE MADE AVAILABLE TO ALL STOCKHOLDERS OF eLOYALTY CORPORATION, AT NO
EXPENSE TO THEM. THE TENDER OFFER STATEMENT (INCLUDING AN OFFER TO EXCHANGE, A
RELATED ELECTION FORM AND OTHER DOCUMENTS) WILL ALSO BE AVAILABLE AT NO CHARGE
AT THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT WWW.SEC.GOV.

ABOUT eLOYALTY

eLoyalty is a leading management consulting and systems integration company
focused exclusively on building customer loyalty. We have professionals in
offices throughout North America, Europe and Australia. The broad range of
enterprise customer relationship management (CRM) services that we provide
includes creating new business strategy, defining technical architecture,
selecting, implementing and integrating CRM software applications; and providing
ongoing support for multi-vendor systems. The combination of our methodologies
and technical expertise enables us to help deliver the tangible economic
benefits of customer loyalty

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to our clients. For more information, please go our website at www.eloyalty.com
or call 877-2-ELOYAL.

ASSUMPTIONS UNDERLYING FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT
FUTURE RESULTS

This news release contains forward-looking statements, including references to
plans, strategies, objectives and anticipated future performance and other
statements not strictly historical in nature, that are based on current
management expectations, forecasts and assumptions. These forward-looking
statements are subject to risks and uncertainties that could cause actual events
or results to differ materially from those expressed or implied by the
forward-looking statements. Such risks, uncertainties and other factors that
might cause such a difference include, among others: the ability to maintain our
common stock listing on NASDAQ; the ability to attract new clients and
continuation of existing and new business from existing clients; reliance on
major clients and suppliers, increasing client concentration and maintenance of
good relations with key business partners; maintenance or our reputation and
financial strength to remain competitive; management of the risks associated
with increasingly complex client projects and new services offerings, including
risks involving the variability and predictability of the number, size, scope,
cost and duration of, and revenues from, client engagements, unanticipated
cancellations or deferrals, collection of billed amounts, shifts from time and
materials to alternative or value-based pricing and variable employee
utilization rates, project personnel costs and project requirements; management
of growth and expansion of business with new services offerings and into new
markets; continued access to capital resources to meet eLoyalty's operating and
financial needs; the realization of certain deferred tax assets which may
require a valuation allowance if operating results do not improve in the future;
implementation of appropriate infrastructure in a timely and cost-effective
manner; the ability to attract and retain highly skilled employees in a
competitive information technology labor market; demand for CRM services and
software generally and continuing intense competition in the information
technology services industry generally and particularly in the provision of CRM
services and software; the rapid pace of technological innovation in the
information technology services industry and the ongoing challenge of creating
innovative solutions that meet client expectations; risks associated with
eLoyalty's global operations; future legislative, regulatory or legal actions
affecting the information technology services industry or the protection of
eLoyalty's intellectual property rights; the continued impact of the slowdown in
the economy on eLoyalty's financial results; and other general business, capital
market and economic conditions and volatility. For further information about
these and other risks, see eLoyalty's recent SEC filings, including its most
recent annual report on Form 10-K and those identified under "Risk Factors" in
the Registration Statement on Form S-3 being filed today and in the company's
quarterly reports on Form 10-Q.