SOURCE: Firepond, Inc.

Firepond, Inc.

February 17, 2009 10:34 ET

Firepond Sale to Be Completed on February 23, 2009

MANKATO, MN--(Marketwire - February 17, 2009) - Firepond, Inc. (OTCBB: FPND) has received notice from its senior secured creditors that pursuant to a statutory process, all of the assets of the Company will be sold at auction on February 23, 2009.

The Company has also been advised by an affiliate of Acclaim Financial Group, LLC ("AFG") that it now holds 100% of the senior indebtedness of Firepond and that it will be bidding to acquire the assets as part of its previously announced plan to eliminate all of the indebtedness of Firepond, reinvest in the new company and, in the process, save 40 very high paying jobs in Minnesota and continue to offer Firepond's customers its market-leading configuration, pricing and quoting Software-as-a-Service solution -- CPQ OnDemand.

AFG has invested over $12 million in Firepond and, upon conclusion of the sale, will be providing the new company with $10 million of additional financing.

About Firepond, Inc.

Firepond (OTCBB: FPND) is the leading provider of multi-tenant, on-demand Configure-Price-Quote® software that automates and simplifies product pricing and configuration for companies and helps these enterprises improve order accuracy while reducing their cost of sales. Firepond's sales solutions help companies to optimize their sales processes whether their need is to solve complex product or pricing configuration, create product catalogs or provide an interactive selling system and dramatically improve response time. Firepond solutions provide a rapid ROI through improved order accuracy (100% of submitted orders have accurate specifications and pricing), improved proposal generation time and high user acceptance. For additional information about Firepond, visit www.firepond.com or call 1-866-UCONFIG (826-6344).

Forward-Looking Statement

This press release may contain forward looking statements that involve risks and uncertainties, including statements regarding our business strategy and development plans, plans for entering into new businesses, anticipated sources and uses of funds and other statements regarding our plans, objectives, expectations and intentions that are not historical facts. Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those discussed in this press release. These risks and uncertainties are described in greater detail in the reports that we file with the Securities and Exchange Commission. Our actual results, performance or achievements may vary materially from those expressed or implied in any forward-looking statements. All forward-looking statements reflect our beliefs and expectations as of the date of this press release and should not be relied upon as representing our views as of any subsequent date. While we may elect to update these forward-looking statements publicly at some point in the future, we specifically disclaim any obligation to do so, whether as a result of new information, future events or otherwise.

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