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Contract Management in the Mid-Market is based on survey results of 140 respondents. It revealed that more than 80 percent of companies on both the buy- and sell-side of contract management use entirely manual or only partially-automated processes and systems. Key findings of the report include:

• Mid-market companies face significant challenges with contract management. In many cases, companies cannot even locate contracts that may be stored away in archaic filing systems.

• On the buy-side, contract management is seen as part of the heightened strategic importance of overall supply management.

• On the sell-side, companies are looking to contract management to improve customer relationships as well as to better assess and mitigate risks.

“The major goal for contract management within any company is to ensure that its commitments and obligations to customers and suppliers are clearly visible to the right people in the organization and that these commitments are promptly executed upon,” said Vishal Patel, Aberdeen research analyst and author of the report. “Our latest contract management report provides insights into some of the unique challenges mid-market companies face, as well as what appears to be a preference for on-demand contract management software.”

Selectica's highly automated, unified Contract Performance Management solution is the industry’s most comprehensive on-demand solution for managing the cost, compliance and performance of complex buy- and sell-side agreements. The robust software ensures compliance by automating and streamlining the creation, storage, management, and analysis of contracts — from initial contract request and negotiation to on-going compliance and performance management. By automating many of the manual, disparate processes traditionally associated with contracts, Selectica’s contract management solution helps companies:

• Gain visibility and control of their commitments;

• Eliminate expired, redundant and poorly structured agreements;

• Track key milestones, deliverables and renewal events;

• Ensure accurate financial reconciliation and compliance;

• Manage collaboration and approvals across entire contract lifecycle; and

• Enforce use of standard processes and terms.

“This report demonstrates the distinct advantage technology plays in streamlining the contract management processes of those companies AberdeenGroup identified as Best in Class,” said James Dias, vice president of marketing and sales at Selectica. ” In today’s environment, where reducing risk and ensuring compliance are paramount, our fully hosted Contract Performance Management software is ideally suited for mid-market companies looking to deploy and run a solution that automates the entire contract lifecycle.”

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 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.