Calico Commerce, Inc. Announces Preliminary Fourth Quarter Results.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--April 6, 2001

Calico Commerce, Inc. (Nasdaq:CLIC) today announced preliminary results for the quarter ended March 31, 2001. Calico expects to report total revenues of between $ 4.0 to $ 4.5 million for the fourth quarter ended March 31, 2001, compared to total revenues of $ 11.3 million for the prior year fourth quarter. Based on these revenues, and the non-recurring items below, the company expects to report a net loss between $2.30 and $2.35 per share for the quarter, compared to a net loss of $0.33 per share for the same period last year.

This loss includes charges mentioned in previous releases of approximately $60.0 million in connection with the sale of our Market Maker business and restructuring activities commenced in January 2001.

"Calico, like many other companies, is feeling the impact of the slowing economy and delayed IT spending plans," said Alan Naumann, chairman and CEO. "We will be reviewing all aspects of our business and will take appropriate action to ensure our plans are aligned with current market conditions."

"While the current environment is painful for many enterprise software vendors, we continue to focus on delivering value to our customers and developing leading edge solutions for companies who are focused on improving their sales productivity and revenue," Naumann added.

Calico will discuss this quarter's results in more detail as well as its outlook for 2002 on a conference call to be held May 3, 2001.

About Calico Commerce, Inc.

Calico Commerce, Inc. (Nasdaq:CLIC) provides software that enables corporations to sell through existing channels, direct over the Web and in Net markets. Calico's 100% Java, application server-based eBusiness application suite allows sales representative, channels and customers to handle complex products, pricing, quoting and orders via the Web, and meets the performance, reliability and scalability needs of any business. As a result, organizations are able to drive lower costs and faster revenue growth, increase customer satisfaction and achieve competitive advantage. Calico customers include leaders in high-technology hardware, manufacturing, telecommunications services, financial services, and retail. Calico Commerce, Inc., headquartered in San Jose, Calif., can be found on the World Wide Web at www.calico.com.

Safe Harbor 

The matters discussed in this news release may contain projections or other forward-looking statements regarding future events or the future financial performance of Calico Commerce, Inc. that involves risks and uncertainties. Readers are cautioned that these statements are only estimates and predictions and may differ materially from actual future events or results. Factors that could cause or contribute to such differences include, but are not limited to: the general economic decline and possible recession in the markets in which Calico operates and competes; the ability to liquidate the shares received from Digital River at the price of the shares on the date the transaction was closed; the ability of Calico to earn the additional consideration through the earn out provisions of its asset purchase agreement with Digital River; the ability of Digital River and Calico to cross-sell their respective solutions to their respective customers and across different industries, the unpredictability of Calico's future revenues and the volatility of such revenues because of, among other factors, the concentration of revenues in the last weeks of a given quarter; Calico's dependence on major customers which results in both a lack of a widely-diversified revenue base and a lengthy product sales cycle, particularly among Global 2000 customers; intense competition in all aspects of Calico's business, especially among Internet e-commerce infrastructure companies, which continue to introduce new and enhanced competing products that offer an alternative to established Calico product offerings; changes in Calico's product or service margins due to pricing changes driven by variations in customer demand and competition; Calico's ability to control internal costs and its need to limit the sales cost for revenue, including specifically Calico's dependence on a direct sales force; completion of Calico's annual independent audit; and Calico's need to effectively manage the expansion of its business, including domestic and international growth and through strategic alliances and partnerships. These forward looking statements should be considered in the context of these and other risk factors disclosed in our filings with the Securities and Exchange Commission, including our Registration Statements on Form S-1 and Form S-4, as amended, and our reports on Form 10-K and Form 10-Q, as amended, available online at http://www.sec.gov, and are based on information available to us on the date hereof. Calico assumes no obligation to update such statements.