Calico Commerce Expects to Report Revenues Below Expectations.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 3, 2000

Calico Commerce (Nasdaq: CLIC), a leading provider of eBusiness applications that enable companies to sell over the Web, today announced that it expects to report revenues and operating results which will be below expectations for the second fiscal quarter ended September 30, 2000.

Late in the quarter several large deals did not close and one transaction was deferred pending completion of outside financing. The Company now expects that it will report revenues between $9.0 to $10.0 million compared with $8.2 million last year. Related operating loss per share is expected to be between $.33 to $.43 compared with $.23 for the same period last year. Cash and investments are expected to total approximately $60 million.

"The fundamentals of the business-to-business e-Commerce software market remain strong," said Alan Naumann, president and CEO, Calico Commerce. "An increased number of large deals and structural changes in the market have lengthened sales cycles. As a result we increased spending to accelerate our sales and marketing efforts. We also broadened the product line with the addition of Calico Price Point as part of an enhanced version of the Calico Suite which shipped at the end of the quarter."

The Company plans to release final results for the second quarter in approximately three weeks and will provide updated forward-looking guidance on the regular quarterly conference call.

About Calico Commerce, Inc.

Calico Commerce, Inc. provides software that enables corporations to control the key elements of eBusiness when selling in Net markets, direct over the Web or through existing channels. Calico's 100% Java, application server-based eBusiness application suite meets the performance, reliability and scalability needs of any business while allowing customers to handle complex products, pricing and relationships via the Web through the entire customer life cycle. As a result, organizations are able to drive revenue growth, increase customer satisfaction and achieve competitive advantage. Calico customers include leaders in high-technology hardware, manufacturing, telecommunications services, financial services, home furnishings, chemicals, agriculture and retail. Calico Commerce, Inc., headquartered in San Jose, Calif., can be found on the World Wide Web at www.calico.com.

The matters contained in this news release that are not purely historical are "forward-looking statements" within the meaning of 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. These risks and uncertainties include such factors, among others, as the potential for fluctuation in Calico's quarterly operating results, Calico's lengthy product sales cycle, demand for the Company's products, the level of service and price competition, the ability of the Company to develop and market new and existing products, ongoing introduction of new and enhanced products by competitors, the concentration of revenues in the last weeks of a given quarter, Calico's dependence on its direct sales force, Calico's ability to attract and retain qualified personnel and those other factors described in the Company's Registration Statement on Form S-1, its Annual Report on Form 10-K, its quarterly reports on Form 10-Q and other public reports filed with the Securities and Exchange Commission.

Note to Editors: Calico is a registered trademark of Calico Commerce, Inc.