San Jose, Calif., May 22, 2006 – Selectica, Inc. (NASDAQ: SLTC), a leading provider of sales execution and contract management applications, today announced release 2.0 of its Fastraq™ sales acceleration solution. Fastraq is an on-demand application that increases total sales performance by simplifying and automating the configuration, pricing and quoting of products and services. Fastraq bridges the gaps between CRM and ERP by providing a dynamic Web-based repository of product and pricing knowledge that enables companies to increase transaction quality, speed and volume by eliminating product information errors and manual processes that cause inaccurate orders and delayed sales.

Based on Selectica’s powerful rules-based modeling technology used to power billions of dollars of transactions at the company’s blue-chip customer base, the newest version of Fastraq brings this enterprise-level functionality to the mid-market with all the benefits of an on-demand solution. Certified for the Salesforce.com AppExchange, Fastraq enables companies to leverage their CRM investment by automating key business processes that occur during a sale, but traditionally aren’t part of sales force automation tools. Despite improvements to sales technologies with the implementation of CRM applications, quoting configurable products remains an undisciplined, highly fragmented process.

At the heart of Fastraq is the robust Marketing Workbench, a breakthrough tool that makes it easy to create custom product catalogs. With simple wizard-driven templates, product, marketing and sales operations managers use Marketing Workbench to minimize the time and effort required to make changes to product catalogs, configuration rules, pricing options and discounting policies, ensuring sales teams and customers always have accurate product and pricing information.

Fastraq’s exclusive “Product Expert” technology leverages a product knowledge repository to give sales and channel partners the power to complete the entire inquiry to order process all from one integrated system and without having to involve product and pricing resources.

“Fastraq unifies product knowledge to deliver real-time virtual product expertise that empowers salespeople with the precise product and pricing information they need to close the sale,” said James Dias, vice president of marketing and sales, Selectica Inc. “This solution is ideally suited for companies whose growth is constrained by existing technologies and methods. These companies need the added functionality of an automated sales acceleration solution that will eliminate friction as they expand with new products, partners and markets.”

Fastraq release 2.0 distinguishes itself as the industry’s most advanced sales execution solution with these powerful features:

• Product Knowledge Repository - Ensures all relevant product and pricing information that is typically scattered across disconnected CRM, ERP and PLM systems or in sales engineers’ heads, is centralized in one dynamic, easily accessible knowledge base.
  
• Catalog Flexibility - Greatly enhances users’ ability to simplify pricing and go-to-market execution across multiple products, channels and regions where there may be differences in products, features or pricing offered. It also provides line-item granularity in discounting, for more flexible, profitable pricing strategy.
  
• Web Quotes - Enables organizations with multiple channels to extend Fastraq’s powerful configuration and pricing capability to business partners. Once the configuration is associated with an opportunity within the CRM system, Fastraq’s workflow, approval and quoting functionality validates configurations, approves pricing and generates a customer-ready quote.
  
• Web Services Interface - Provides a Web services interface from Fastraq that can be used to drive an order entry system. This new feature helps to further streamline and automate the quoting process into the order and fulfillment process, providing a more integrated and comprehensive end-to-end sales solution.

For more information on Fastraq, or to schedule a demo, visit www.fastraq.com.

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, including Fastraq. 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 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.