Calico Commerce Inc. Announces $0.03 Final Cash Liquidating Dividend.

SAN JOSE, Calif. -- Calico Commerce Inc. announced today that on Dec. 28, 2004, the company will make a $0.03 per share second liquidating dividend to stockholders of record on Aug. 26, 2003. This final dividend represents the remaining assets in the company, and the company expects to make no further distributions to stockholders.

The liquidating dividend is being made pursuant to the terms of, and in accordance with, the joint Plan of Reorganization filed by Calico and its Official Committee of Equity Security Holders, and approved by order of the United States Bankruptcy Court for the Northern District of California, San Jose Division, Case No. 01-56101-MSJ, entered on Aug. 14, 2003, confirming the First Amended Joint Plan of Reorganization (Dated June 30, 2003) (the "Plan") filed by Calico Commerce Inc. and the Official Committee of Equity Security Holders appointed in the case.

Calico made an initial liquidating distribution on Dec. 18, 2003, of $0.46 to each Calico stockholder of record as of Aug. 26, 2003 (the "Record Date"), based upon 39,417,057 shares of Common Stock outstanding as of the Record Date. Calico made a second liquidating distribution in May 2004 to its stockholders of record at the close of business on the Record Date of $0.09 per share for each share of the company's common stock that they owned. In this final liquidating distribution, the company's stockholders of record at the close of business on the Record Date will receive $0.03 per share for each share of the company's common stock that they owned. Accordingly, the total of all liquidating distributions paid by Calico to its stockholders of record on the Record Date shall aggregate $0.58 per share. The company's transfer agent, American Stock Transfer & Trust Co., will be the distribution agent for purposes of distributing this final $0.03 dividend. The distribution will be mailed to each stockholder (or, in certain circumstances, a confirmation of credit to the stockholder's brokerage account) by the transfer agent on or about Dec. 28, 2004. All stockholders much cash the checks sent to them in connection with this distribution within 6 months or the funds will be void and considered "unclaimed property" under the plan of reorganization.

After this final distribution of all remaining assets to creditors and equity holders, and after entry of the final decree in the bankruptcy case, the company expects to dissolve.