San Jose, Calif. – July 18, 2006 – Selectica (NASDAQ: SLTC), a leading provider of sales execution and contract management solutions, today announced Supply & Demand Chain Executive Magazine, the executive's user manual for successful supply and demand chain transformation, has named Selectica to its fifth-annual listing of the Supply & Demand Chain Executive 100.

Five years ago, Supply & Demand Chain Executive announced its first "100" list of supply chain solution providers, consultants and other organizations that were helping lead the way in transforming companies' supply and demand chains. This year the magazine focused the criteria for its "100" feature on innovation.

"Our readers turn to Supply & Demand Chain Executive to learn about new solutions and best practices for enabling the supply chain, to understand trends in supply chain technology, and to benchmark their own companies' enablement initiatives with those of other enterprises across industry verticals," explained Andrew K. Reese, editor of Supply & Demand Chain Executive. "The corporate executives and line-of-business leaders who rely on the magazine want to know not only what the state of the art is today, but what will be the cutting edge of supply chain transformation and enablement tomorrow."

Selectica Innovation
Selectica develops best-of-breed solutions to solve critical sell-side and buy-side challenges by accelerating sales execution and automating contract lifecycle management. For years, Selectica has been a recognized leader in sales configuration technology for companies requiring highly customized solutions. During the past year, Selectica has expanded its portfolio to provide its customers with innovative solutions that take full advantage of the Software-as-a-Service (SaaS) model that delivers faster implementations, lower total cost of ownership, rapid ROI and the ability to scale as needed.

In Nov. 2005, Selectica released Fastraq, an on-demand sales execution solution based on the same powerful rules-based modeling technology used to power billions of dollars of transactions at Selectica’s blue-chip customer base. Fastraq bridges the gaps between CRM and ERP by enabling companies to increase transaction quality, speed and volume by eliminating product information errors and manual processes that cause inaccurate orders and delayed sales. Selectica's second on-demand solution, Contract Performance Management (CPM), provides enterprise-wide visibility and control over the entire contract lifecycle management process. By centralizing all corporate commitments and enforcing internal and external compliance, CPM helps companies plug revenue leaks, control spending and limit risk exposure.

“We are honored that Supply and Demand Chain Executive has recognized our commitment to deliver innovative solutions to the marketplace,” said James Dias, vice president of marketing and sales for Selectica. “Selectica will continue to play a pivotal role in contributing to the advancement of supply chain excellence with sales execution and contract lifecycle management solutions that provide visibility and control of revenue-related activities and commitments.”

Supply & Demand Chain Executive 100
Supply & Demand Chain Executive identified the leading providers of supply chain services and technologies who are at the forefront of innovation. Based on submissions to the "100" from end users and solution providers, the judging committee for the "100," including the editorial staff of the magazine, in conjunction with the editorial advisory board, compiled a list of the leading supply and demand chain innovators.

Final recipients are featured in the cover story of the June/July 2006 issue of Supply & Demand Chain Executive, as well as online at www.SDCExec.com.

About Supply & Demand Chain Executive
Supply & Demand Chain Executive is the executive's user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated, yet critical, world of supply and demand chain enablement to gain competitive advantage. On the Web at www.SDCExec.com.

About Selectica, Inc.
Founded in 1996, Selectica (Nasdaq: SLTC - News) provides its customers with smart technology that accelerates profitability by automating complex business processes in the areas of sales execution and contract lifecycle management. Available on-demand or as a fully customized installed software application, the Company's high-performance solutions provide a critical link between CRM and ERP to accelerate sales configuration, eliminate order inaccuracies, ensure compliance and limit risk exposure.

Selectica customers represent leaders in manufacturing, technology, healthcare and telecommunications, including: ABB, Alcoa, Applied Bio Systems, Bell Canada, Cisco, General Electric, Fireman's Fund Insurance Company, Hitachi, International Paper, Juniper Networks, Rockwell Automation, Seton Hospital, Tellabs, Time Warner, Triad Hospitals 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, market and customer acceptance of new products of Selectica including the on-demand contract management and sales execution products and the applications developed with joint venture partners, the success of the ongoing restructuring of Selectica’s operations, and 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.