San Jose, Calif., April 13, 2006 – Selectica, Inc. (NASDAQ: SLTC), a leading provider of sales execution and contract management applications, today announced the immediate availability of the latest versions of its Configurator and Pricer engines that offer new solution configuration capabilities for selling complex, configured products and services. Selectica’s newest offering delivers powerful solution selling capabilities that enable companies to effectively configure and price bundled configured products and services. Companies can now be more responsive to changing market needs resulting in improved revenues, profit margins and higher customer satisfaction.

Selling complex products and services can be just that, complex. Customers often don’t just need one product or service, but a mixture of multiple configured and non-configured products and services to meet their unique business objectives. Companies that serve these customers face challenges in configuring and pricing the correct solution, often depending on inefficient manual processes that result in high order error rates and long lead times to complete a quote.

By automating the manual, disparate processes typically associated with configuration, pricing and quoting (CPQ), Selectica’s powerful constraint-based solution configuration and pricing management technology enables its sales force and channel partners to deliver complete solutions quickly and accurately. In Gartner’s Marketscope for Sales Configuration published April 10, Selectica was profiled as having “proven experience with handling complex configuration problems, expanded pricing configuration functionality, a good user interface for maintaining sales configuration rules and strong scalability.” The report concluded that “because of its experience and technology, Selectica should continue to be considered on shortlists for complex sales configuration evaluations.”

Strengthening Applications
The new capabilities announced today strengthen Selectica’s application strategy. Selectica will incorporate the robust feature-set into the next-generation of its Fastraq on-demand sales productivity offering, enabling partners to build sophisticated application layers on top of the engines to drive industry-specific solutions for telecommunications, insurance and other verticals with unique configuration and pricing needs.

Constraint-based technology is critical when successfully selling complex, configured products.
According to research by Gartner, enterprises that do not leverage constraint-based technology will be plagued by an average of 50 percent higher total cost of ownership and poor user adoption. With the latest release of its constraint-based configuration technology, Selectica now offers an even more effective way to configure and price complex products and services across and within product lines for the most complete, scaleable offering in the market today.

Selectica’s latest Configurator engine release offers many new key capabilities, including support for sub-configuration of products. This allows the creation of independent sub-configurations of configure to order (CTO) products. These can then be bundled together with other CTO products to create a solution configuration that delivers more flexibility, ease in deployment and maintenance, and additional revenue opportunities, such as cross-selling and up-selling.

Together with the new Configurator, Selectica’s new Pricer engine enables customers to easily set up, modify and maintain pricing rules for configure to order products. The new enhancements enable solution pricing capabilities, including cross-product promotions, so businesses can deliver a total solution to the end customer. This results not only in enhanced revenue opportunities, but higher customer satisfaction and loyalty from delivering a more customized, valuable solution.

“Solutions configuration is a giant step forward in the field because it enables users to handle the most complex sales transactions containing a vast array of products and services,” explained James Dias, vice president of marketing and sales, Selectica. “This new advancement in constraint-based technology creates entirely new avenues for our customers to drive efficiencies, accelerate sales and respond to the varied requirements of their respective markets.”

About Selectica, Inc.
Founded in 1996, Selectica (NASDAQ: SLTC) 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, Dell, 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 document 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 Fastraq, the recently acquired contract management 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, 2005 and in other reports filed by Selectica with the Securities and Exchange Commission.