Calico Teams with IBM Global Financing to Offer Creative Financing Solutions for Customers.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 8, 1999--

Calico Commerce, Inc., (Nasdaq:CLIC) a leading provider of electronic commerce software and services, today announced that it has signed an agreement with IBM Global Financing to offer customers attractive financing rates for Calico eSales software, services and maintenance. The alliance allows Calico to extend authorized IBM Global Financing offerings to new and existing customers, enabling them to purchase Calico's personalized and competitive web-based buying and selling suite with less up-front costs.

With IBM Global Financing, customers will be able to acquire Calico's electronic commerce software more quickly and with flexible financing terms. IBM Global Financing professionals will provide Calico with training in financing software and team with Calico executives to deliver creative financing options to qualified prospective customers.

"Software financing is a rapidly growing market driven by rising customer demand. It is IBM Global Financing's goal to establish alliances with leading software companies like Calico so that together we can offer significant advantages to our customers," said Peter Leland, national sales manager, ISV and IT Services Provider Financing, IBM Global Financing. "IBM Global Financing and Calico will provide flexible financing that makes it easy for customers to purchase complete electronic commerce solutions and maintain a competitive advantage."

"IBM Global Financing is the world's largest IT financier, offering Calico and IBM's worldwide customers an opportunity to purchase enterprise-ready eCommerce solutions for personalized buying over the Web that can result in increased revenue and reduced sales costs," said Beverly Powell, vice president of business development, Calico. "Calico is pleased to be working with IBM Global Financing to drive customer satisfaction by offering corporations creative financing solutions that will help them to acquire Calico software."

About IBM Global Financing

IBM Global Financing is the market leader in software financing and continues to grow by expanding its portfolio of relationships with the world's leading software developers. IBM Global Financing serves organizations of all sizes in more than forty countries and also provides flexible commercial financing to resellers and remarketers. For more information, solution developers should send a note to [e-mail]. General information about IBM Global Financing can be found at our website at www.financing.ibm.com.

About Calico Commerce, Inc.

Calico Commerce, Inc., headquartered in San Jose, Calif. and with offices throughout the United States and Europe, is a provider of software and services that enable customers to engage in eCommerce by selling complex products and services over the Internet. Calico eSales is a personalized Web-based buying and selling solution that enables customers to create a unique process to interact with their customers to improve selling effectiveness and customer satisfaction. Calico eSales can be deployed across the Internet, intranets, extranets and corporate networks and can be accessed through desktop and mobile computers and retail kiosks. Calico Commerce, Inc. can be found on the World Wide Web at http://www.calico.com

Except for the historical information contained herein, the matters discussed in news releases contain forward-looking statements that involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such forward-looking statements. Potential risks and uncertainties are described in detail in Calico's Registration Statement on Form S-1 as filed with the Securities and Exchange Commission.