Calico Commerce Announces Restructuring Plan; Calico Focuses on Delivering Interactive Selling Solutions.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--April 11, 2001

Calico Commerce, Inc. (Nasdaq:CLIC), a leading provider of software that enables corporations to sell more effectively, today announced that it has undertaken to reduce expenses by up to $20 million on an annual basis. The projected expense decrease is expected to be achieved primarily through reductions in its workforce, in addition to savings in facilities and overhead expenses. Calico intends to reduce its workforce by approximately 45% or 120 employees, affecting all departments of the Company, which will result in a nonrecurring charge of $2 to $3 million in its quarter ending June 30, 2001.

In commenting on this action, Alan Naumann, chief executive officer and chairman of the board, noted that he is aggressively taking steps to ensure Calico's business plan reflects today's economic realities, while at the same time ensuring that the Company stays focused on addressing the large market opportunity for interactive selling solutions.

"Like many other software companies, we find ourselves having to act to align our expense structure with current market conditions," said Naumann. "By moving now, not only are we better prepared to weather the current economic downturn, but we also protect key investments across all areas of the company, ensuring that Calico will continue to deliver compelling solutions and value to our growing customer base."

This move coupled with Calico's recent divestiture of its marketplace business, highlights Calico's continued efforts to deliver value to customers with its interactive selling solutions. "We are disappointed by the prospect of losing such talented people, but we are optimistic about the interactive selling market opportunity that awaits our more focused efforts," Naumann added.

About Calico Commerce, Inc.

Calico Commerce, Inc. (Nasdaq:CLIC) develops and delivers interactive selling solutions for Global 2000 companies to sell more effectively through every channel. Calico's solutions drive significant bottom-line benefits to customers and build competitive advantage by improving sales productivity and eliminating the costs of inaccurate orders. Calico's solutions enable customers to streamline the sale of complex products, execute real-time pricing, and manage quote and order processes via the Web, thus delivering a unique experience to users through multiple channels. Calico's customers include global leaders in high technology and industrial manufacturing, telecommunications services, financial services, and retail. Calico Commerce, Inc., headquartered in San Jose, Calif., can be found on the World Wide Web at http://www.calico.com.

The above statements contained in this earnings release, including but not limited to any projections therein, which are not purely historical in nature involve forward looking statements, as that term is defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, any statements included herein regarding Calico's future product development, product sales and other revenues, market opportunities, beliefs, expectations, goals, financial performance and future strategies, all of which are dependent on certain risks and uncertainties that may cause actual results to differ materially from those expressed in these or any other forward-looking statements made by or on behalf of Calico.

In addition to factors discussed above, among other factors that could cause actual results to differ materially from those suggested are the following: The ability of Calico to fully realize its projected expense savings through effectively managing this restructuring; 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, including its Advisor and PricePoint products; The ability of Calico to focus on the interactive selling market opportunity; The ability of the Calico to retain its trading status on the NASDAQ national market system; 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; and Calico's need to effectively manage the expansion of its business. The 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. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update such statements. We do not undertake to update them, however we may choose from time to time to update them and if we do so, we will disseminate the updates to the investing public.