Calico and Sal Barker, Inc. Build First Online Trading Exchange for Surplus Food Market.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--June 20, 2000

Calico Market Maker Powers Trading Exchange Serving

$900 Billion Foodservice and Retail Food Industries;

The Salvation Army and Other Leading Charitable Organizations 

Benefit from Net Marketplace

Calico Commerce, Inc. (Nasdaq: CLIC), a leading provider of eBusiness applications that enable companies to sell over the Web, today announced that Sal Barker, Inc., the first online secondary distribution channel for surplus food products, has chosen Calico Market Maker(TM) to power its new Net marketplace that will include product catalog, order management, customization and supply chain integration capabilities.

Powered by Calico, Sal Barker provides the only business-to-business Net marketplace for multiple manufacturers, distributors and brokers in the combined $900 billion foodservice and retail food industries. The site is expected to go live in less than 90 days and is designed to efficiently liquidate surplus food items, while coordinating the fulfillment of these sales in a transportation exchange.

The buying, selling and distribution of surplus foods is an extremely complex, fragmented and manual process to date. This multi-billion dollar spot market also depends on instant decisions and rapid movement of products between multiple buyers and sellers. Powered by Calico Market Maker, Sal Barker will bring together multiple manufacturers, distributors, brokers, charitable institutions and transportation companies into a one-stop digital marketplace where surplus goods can be traded, negotiated, bought and distributed online. As a result, all channels will benefit from increased margins with more efficient online negotiation and sales, transforming this fragmented process into a reliable supply chain.

Sal Barker has already attracted more than 1,300 leading buyers and suppliers such as The Salvation Army, Value Distributors, Panther Lines, Washington Caterers, and Hawk Pacific Transportation, who will participate in the new Net marketplace. The site will create new opportunities for these diverse industries to communicate their common interests and conduct transactions seamlessly via the Web.

Sal Barker selected Calico because it was the only company to offer the critical applications necessary to power complex relationships between multiple buyers and sellers. Sal Barker was impressed with Calico's ability to rapidly serve the needs of this fragmented market with a single, standards-based solution. Powered by Calico Market Maker, the Sal Barker Net marketplace will provide community capabilities, marketing information, essential services specifically designed for the buying and selling of surplus food products and a list of services customized to each subscriber.

"Time to market for our business is everything, and Calico nailed the problem out of the gate. We chose Calico over competitive solutions due to its ability to get Net marketplaces up and running quickly, while providing us with a scalable, standards-based platform that will grow with our business," said Cash Doye, CEO, Sal Barker, Inc. "Calico Market Maker provides the rich features and functionality that no other application on the market offers today. Not only will Calico help us to efficiently connect multiple buyers and suppliers in this untapped surplus food products industry, but we are also working together to benefit society -- which is the true bottom line."

In addition to linking multiple buyers and suppliers of food items online, the Sal Barker site also offers a value proposition for charitable organizations who can now feed twice as many people for the same budget. For example, The Salvation Army serves more than 26 million meals per year and has 13 independent distribution centers throughout the United States. Participating in Sal Barker's online marketplace makes it easier for food suppliers to donate items to preferred organizations like The Salvation Army in an efficient manner via the Web. In addition, The Salvation Army will have the ability to bid on surplus food items that have been posted on the site at extremely low prices.

"Today's announcement validates Calico's proven ability to power emerging Net market makers such as Sal Barker who are pioneering new methods of trade and changing the way business is conducted over the Web," said Alan Naumann, president and CEO, Calico Commerce, Inc. "Calico is pleased to be working with Sal Barker, an innovative company that is not only focused on simplifying the buying and selling process across multiple industries, but is also giving back to society by using the efficiency of the Internet to make food available to millions in need."

About Calico Market Maker

Calico Market Maker(TM) is a 100% Pure Java(TM) product that was designed to be a robust business-to-business Net market platform for many-to-many digital marketplaces. To accelerate time to market and make the selling process more efficient, Calico Market Maker provides an integrated solution that includes cross-supplier catalog, customized pricing, buyer profiling and user content, back-end system integration and fulfillment tracking information. Calico Market Maker also streamlines the e-Commerce process by dynamically connecting multiple buying and selling organizations via the Internet and provides extensive core functionality required for corporations to rapidly and cost-effectively bring their businesses onto the Web and begin taking orders -- often in less than 90 days. In addition, Calico's patented agent technology allows Net market makers to build communities by grouping appropriate buyers and sellers, and proactively notifying buyers about new products and services that are available to them.

About Sal Barker

Sal Barker is a web-based supply chain management solution for the $45 billion spot market of salvage and excess food inventories. The site focuses on logistics and fulfillment to serve the needs of a buyer-driven marketplace. Sal Barker's business model will drive network growth throughout the foodservice and retail food verticals, with the potential for replication in other fragmented industries. The company's core product is relationship management software accessed by a network of buyers, sellers and carriers through a web browser, serving the complex demands of "many to many" transactions. Sal Barker offers the unique opportunity to improve margins as well as volume by addressing an existing inefficiency, offering the potential to transform the combined $900B foodservice and retail food verticals. When fully functional and deployed, Sal Barker's service has the potential to end all hunger caused by transportation inefficiency.

About Calico Commerce, Inc.

Calico Commerce, Inc. provides an eBusiness application suite that enables leading corporations to sell products and services via the Web, through existing channels and in Net Markets. Calico's open-standards eBusiness applications match unique customer needs to products 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.

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 public reports filed with the Securities and Exchange Commission such as Calico's Registration Statement on Form S-1 and on Form S-4 in connection with the ConnectInc.com acquisition.