Blue Shield of California Chooses Selectica to Implement Customer-Centric Online e-Business Solution for Consumers.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 8, 2000

Selectica to Provide Specialized Selling Solution to Make Online

Health Insurance Selection and Enrollment Quick, Easy, and Accurate

Selectica(TM), Inc. (Nasdaq:SLTC), provider of Internet Selling Systems (ISS) for e-Business, announced today that Blue Shield of California, California's second largest not-for-profit health plan, has chosen Selectica's ISS to implement an easy-to-use, interactive selling process that will provide another option to California consumers looking for health coverage. Through this arrangement, individual California consumers will be able to quickly and easily find over the Internet the Blue Shield of California health plan that best fits their needs and budget.

Selectica's ISS, a comprehensive, Internet-based application suite, simplifies and accelerates the process of selecting, configuring, pricing, and purchasing complex products and services with great efficiency and accuracy across all channels. Selectica's ISS offers consumers the choice, flexibility and convenience to research, price and compare numerous health plan options, enabling them to tailor a customized health insurance plan. The ISS interactively guides consumers through a series of questions to assess their healthcare needs and preferences. Upon completion of the survey, the Selectica ISS processes their responses and recommends up to three healthcare plans that meet their specific requirements. Consumers can compare the plans and select the one that best meets their needs.

"Selectica's ISS solution will enrich the electronic services we provide the marketplace by delivering a true customer-centric solution that helps consumers make the best choices for themselves and their families," said Alan Gellman, vice president of e-Business at Blue Shield of California. "We chose Selectica to be our partner in this effort because their track record in delivering comprehensive solutions to the insurance industry nicely complements our own focus on innovation and service."

"Selectica is very excited to work with a recognized health plan provider like Blue Shield of California," said Raj Jaswa, president and CEO of Selectica. "This attests to the fact that our ISS solution is quickly becoming the platform of choice for healthcare insurance providers, transforming the process of selecting insurance online."

Selectica's ISS is scheduled to launch in spring 2001 as part of the current phase of Blue Shield's e-Business strategy. During later phases, the program will roll out to prospective customers and reseller partners, including the implementation of additional value-added features such as online enrollment.

About Blue Shield of California

Blue Shield of California, an independent member of the Blue Shield Association, is California's second largest not-for-profit health care company, with two million members and $3 billion annual revenue. The company was founded in San Francisco in 1939 as the nation's first medical service prepayment plan and is the only major managed care company headquartered in San Francisco.

About Selectica, Inc.

Selectica, Inc. (Nasdaq:SLTC) develops, markets and supports a packaged Internet Selling System (ISS) solution that enables companies to sell and buyers to purchase complex products and services over the Internet. Selectica's ISS solution enables businesses to easily develop and rapidly deploy an Internet sales channel that interactively assists their customers through the selection, configuration, pricing, quoting and fulfillment processes. Selectica's customers include industry leaders such as BMW, Cisco Systems, Dell Computer, Fireman's Fund Insurance Company, Hewlett-Packard, Highmark Blue Cross Blue Shield, Juniper Networks, and Rockwell Automation. Selectica is headquartered in San Jose, Calif. The company's Web site is located at www.selectica.com.

The statements contained in this release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, including statements regarding Selectica's expectations, beliefs, hopes, intentions or strategies regarding the future. All forward-looking statements included in this document are based upon information available to Selectica as of the date hereof, and Selectica assumes no obligation to update any such forward-looking statement. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include, but are not limited to, the factors and risks discussed in Selectica's Registration Statement on Form S-1, as amended, and filed with the Securities and Exchange Commission.

Selectica is a trademark of Selectica, Inc. All other product and company names may be trademarks of the companies with which they are associated.