San Jose, Calif., April 7, 2006 – Selectica, Inc. (NASDAQ: SLTC), a leading provider of sales execution and contract management applications, today announced the release of “The Contract Management Benchmark Report: Procurement Contracts” by AberdeenGroup. Selectica’s support of the report signifies the company’s effort to educate the market and provide thought leadership. Selectica’s mission is to provide better visibility and control of the entire contract lifecycle, enforce compliance, mitigate risk and provide insight into key business processes.

The study provides a comprehensive look at the state of the contract management industry today by examining the contract management strategies, procedures, and investment plans of more than 200 companies. Since 2003, AberdeenGroup has benchmarked enterprise contract management processes and the use of supporting technologies at hundreds of companies. These research efforts clearly quantify the positive impact contract management automation can have on revenues, costs, compliance and operations.

“In the face of heightened regulatory requirements and lingering economic uncertainty, businesses are recognizing the importance of instituting formal procedures and systems that will provide them with better visibility and control of their commitments," said James Dias, vice president of marketing and sales at Selectica. "Our Contract Performance Management solution provides real-time insight into all contractual relationships, enabling organizations to maximize revenue and limit risk exposure while reducing contract cycle time and costs.”
 
The study is the second in Aberdeen's bi-annual benchmarking of enterprise strategies, processes, systems and performance in managing and optimizing supplier contracts. The study provides a framework for supply managers to benchmark their supplier contract management competence, quantify the impact of their performance, and identify actionable strategies for improvement.

“Our latest benchmark report provides insights into the benefits of automating the contract management process and how this has helped improve performance, included are also some practical, actionable steps to improve the efficiency and effectiveness of current processes within a company, “said Vishal Patel, Aberdeen research analyst and author of the report.

According to the report:

• The process for supplier contracts is still largely inefficient and labor-intensive; few companies have effective policies and procedures in place.
• Approximately 50 percent of companies admitted to having poor visibility into their supplier contracts.
• Nearly 80 percent of enterprises are using manual or only partially automated processes to carry out contract management activities.
• ‘Best in Class’ companies are out-performing the industry norm in compliance to contracts and are achieving savings with fewer resources.

Available as installed software or an on-demand subscription, Selectica's highly automated, unified Contract Performance Management solution goes far beyond standard authoring tools to provide a comprehensive platform that turns buy- and sell-side agreements into strategic corporate assets. As a result, organizations are able to increase compliance, maximize revenue and limit risk exposure while reducing contract cycle time and related administrative costs.

To download a free copy “The Contract Management Benchmark: Procurement Contracts” visit: http://www.aberdeen.com/link/sponsor.asp?spid=30410271&cid=2817
 
About AberdeenGroup
AberdeenGroup, Inc. provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen’s benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives -- and the solution providers who serve them. For more information, visit www.aberdeen.com or call 617-723-7890.

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.