San Jose, Calif. – Jan. 10, 2007 – Selectica (NASDAQ: SLTC), a leading provider of enterprise contract lifecycle management solutions, today announced the availability of a new benchmark report by AberdeenGroup titled “Contract Management in the Quote-to-Cash Cycle: More Revenue, Less Leakage.” The Selectica-sponsored report demonstrates how Contract Lifecycle Management, once used solely for procurement and supplier contracts, is quickly gaining interest from executives looking to stem the tide of revenue leakage in their sell-side agreements. On average, poor contract management practices cost companies 9 percent of their revenue due to regulatory penalties, missed deadlines, lost sales, long sales cycles, maverick pricing, and transactional errors, according to the report.

To download a free copy of “Contract Management in the Quote-to-Cash Cycle: More Revenue, Less Leakage" visit, www.selectica.com/report.

“The sales order management process and the entire quote-to-cash cycle have become increasingly complex, due to rise in contract volume, intricate product pricing and configuration, and the wide range of data which must be negotiated, approved and monitored,” said Vishal Patel, research analyst with AberdeenGroup and author of the report. “Selectica, with its flexible architecture and strong sell-side domain expertise, is well positioned to meet marketplace needs.”

“Contract Management in the Quote-to-Cash Cycle: More Revenue, Less Leakage " provides an in-depth look at sell-side contract management by examining the contract management strategies, procedures, and investment plans of the 189 companies who participated in the Aberdeen survey late last year. The report also recommends best practice next steps for improving contract management procedures and performance, and highlights key performance benchmarks of companies identified as "best in class" by Aberdeen.

Findings of the report include:

• The percentage of an enterprise's revenue that is dictated by a contract is likely to rise from 56 percent to 68 percent during the next two years.
• 83 percent of respondents said contract lifecycle management is “essential” or “important” to the quote-to-cash cycle.
• 67 percent report a disconnect among the various sales processes, including pricing, proposal creation, negotiation, contract management, as well as order management and invoicing.
• 43 percent face challenges with the lack of standardization of language used in proposals, contracts and service-level agreements (SLA’s)
• 47 percent plan to invest in contract management software in the next 24 months.
  

“This latest Aberdeen report provides a prescriptive wake-up call for all sales organizations who continue to be hamstrung by manual, paper-based systems,” said Terry Nicholson, Selectica COO of Contract Management Solutions. “Using Contract Lifecycle Management automation software to unify and streamline key revenue cycle processes helps companies to shorten the sales cycle, plug revenue leaks, maximize productivity, and more accurately forecast revenue.”

Selectica delivers the industry’s most flexible solutions for managing the full range of enterprise contracts, including sales, SLA’s, employment, purchasing, operations, leasing and intellectual property agreements. The robust software platform 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 solutions help companies:

• Gain visibility and control of their commitments;
• Eliminate 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.

About Selectica, Inc.
Selectica, Inc. (NASDAQ: SLTC) provides its customers with software solutions that automate the complexities of enterprise contract management and sales configuration lifecycles. The company's high-performance solutions underlie and unify critical business functions including sourcing, procurement, governance, sales and revenue recognition. Selectica has been providing innovative, enterprise-class solutions for the world's largest companies for over 10 years and has generated more than $500M in savings for its customers. 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, (i) 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, (ii) the success of the ongoing restructuring of Selectica's operations, (iii) the conclusions resulting from the independent review of the Company's past stock option granting practices, (iv) the Company's inability to file periodic reports in accordance with the Securities Exchange Act of 1934, (v) the inability of the Company to avoid delisting from the Nasdaq Stock Market due to non-compliance with Marketplace rules, (vi) and potential regulatory inquiries and litigation relating to the review of past stock granting practices and any related restatement of the Company's financial statements and (vii) 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.