Selectica Gains Momentum in Several Industries

Expands Penetration in High Tech and Healthcare While Adding Customers in Consumer Products and Business Process Outsourcing


SAN JOSE, CA--(Marketwire - September 13, 2007) - Selectica, Inc. (NASDAQ: SLTC), a leading provider of enterprise contract lifecycle management (CLM) solutions, today announced that the company has extended its penetration of existing markets, penetrated new ones, and is enabling a growing number of companies to quickly and cost-effectively achieve the benefits of contract management software. Industries where Selectica has increased penetration include high technology and healthcare, traditionally strong markets for the company. In addition, new customers have been added in consumer products and business process outsourcing.

During 2007, notable customer additions include:

--  A leading global telecommunications equipment manufacturer
--  One of the world's largest providers of cellular handsets
--  One of the country's largest healthcare providers
--  A leading beverage manufacturer and distributor
--  A global provider of business processing outsourcing services
    

According to a recent Forrester report on the contract lifecycle management market almost 2000 companies have already purchased contract management solutions and this number is expected to more than double by 2011. With a highly adaptable underlying technology and an unprecedented choice of delivery options, Selectica is working to capture an increasing percentage of this growth.

"Contract management is really a horizontal technology that can deliver significant benefits to virtually every industry," said Terry Nicholson, Vice President and General Manager of Contract Lifecycle Management Solutions at Selectica. "Traditionally, certain industries like high tech and healthcare have favored the Selectica contract management solution. However, our ability to provide end-users with an easily adaptable solution to meet their needs -- without costly custom programming -- is attracting a diverse set of customers to the Selectica Contract Performance Management Solution and enabling us to consistently penetrate new markets."

About Selectica, Inc.

Selectica, Inc. (NASDAQ: SLTC) provides its customers with software solutions that automate the complexities of enterprise contract management and sales configuration lifecycles. The company's high-performance solutions underlie and unify critical business functions including sourcing, procurement, governance, sales and revenue recognition. Selectica has been providing innovative, enterprise-class solutions for the world's largest companies for over 10 years and has generated substantial savings for its customers. Selectica customers represent leaders in manufacturing, technology, retail, healthcare and telecommunications, including: ABB, Ace Hardware, Bell Canada, Cisco, Covad Communications, General Electric, Fireman's Fund Insurance Company, Hitachi, International Paper, Juniper Networks, Levi Strauss & Co., Rockwell Automation, Tellabs, and 7-Eleven. Selectica is headquartered in San Jose, CA. For more information, visit the company's Web site at www.selectica.com.

Forward-Looking Statements

The statements contained in this release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, including statements regarding Selectica's and its customers' expectations, beliefs, hopes, intentions or strategies regarding the future and expectations regarding performance improvements or increases in sales attributable to Selectica's existing and new products. All forward-looking statements included in this release are based upon information available to Selectica as of the date hereof, and Selectica assumes no obligation to update any such forward-looking statement. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include, but are not limited to, (i) market and customer acceptance of new products of Selectica, including the on-demand contract management and sales execution products and the applications developed with business partners, (ii) the success of the ongoing restructuring of Selectica's operations, (iii) the conclusions resulting from the independent review of the Company's past stock option granting practices, (iv) the Company's inability to file periodic reports in accordance with the Securities Exchange Act of 1934, (v) the inability of the Company to avoid delisting from The Nasdaq Stock Market due to non-compliance with Marketplace rules, (vi) potential regulatory inquiries and litigation relating to the review of past stock granting practices and any related restatement of the Company's financial statements and (vii) other factors and risks discussed in Selectica's Annual Report on Form 10-K for the fiscal year ended March 31, 2006 and in other reports filed by Selectica with the Securities and Exchange Commission.

Contact Information: Investor Contact: Tony Rossi Financial Relations Board for Selectica 213-486-6545 Media Contact: Sam Diamond Diamond Publications 520-575-2787