Bankruptcy Court Approves Sale of Assets to PeopleSoft.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 28, 2002

Calico Commerce, Inc., announced that on January 25, 2001, the U.S. Bankruptcy Court approved the sale of its intellectual property and certain assets to PeopleSoft, Inc. for approximately $5 million cash. Calico expects the sale to close on or about February 5, 2002.

At the closing, Calico expects that approximately 40 of its employees will become employees of PeopleSoft, leaving Calico with approximately 5 employees to perform the remaining tasks necessary to conclude its bankruptcy proceedings and other administrative matters. PeopleSoft will not be assuming any stock options outstanding under Calico's stock option plans. Accordingly, since those stock options would otherwise terminate, Calico expects that many of its outstanding stock options will be exercised prior to the expected February 5, 2002 closing date, and that some of the underlying shares received upon such exercise may be sold. Options to purchase 1.8 million shares of our common stock will be vested and exercisable as of February 5, 2002, at exercise prices ranging from $0.18 to $42.75 per share. In addition, Calico will continue to have 3.5 million options outstanding that do not terminate as a result of the closing of the sale to PeopleSoft.

About Calico Commerce, Inc.

Calico Commerce, Inc. (OTCBB:CLIC) is a provider of interactive selling software for organizations selling complex products or services. With its advanced configuration and recommendation technology, Calico's products enable corporations to better understand and serve their customers. Calico customers realize benefits including improved order accuracy, shortened sales cycles and improved customer satisfaction. Calico's interactive selling software has a low total cost of ownership and enables companies to take products to market quickly, resulting in a faster and higher return on investment than that realized from traditional configuration solutions. Calico customers include leaders in the telecommunications, financial services, retail, electronic finished goods and medical equipment industries. Calico Commerce, Inc. can be found online at www.calico.com.

This news release contains projections or other forward-looking statements, including statements regarding the anticipated closing date of our sale of assets to PeopleSoft, and the possible exercise of stock options and sale of our common stock, the affect of any such sale of stock on our stock price and the dilutive effect of the exercise of such options. Actual results may differ materially from those projected in these forward-looking statements, and there is no assurance that the sale to PeopleSoft will close, or that employees will exercise their options and sell the underlying stock. The matters discussed in this news release should be considered in the context of the risk factors disclosed in the company's filings with the Securities and Exchange Commission, including its reports on Form 10-K and Form 10-Q, as amended, available online at http://www.sec.gov. All forward-looking statements are based on information available to Calico on the date hereof, and Calico assumes no obligation to update such statements.