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January 23, 2001

CONTACTS:
Lou Saviano
Maita/Saviano Public Relations
510 739-0621

Lsaviano@maita-saviano.com



Laurie Spoon
Public Relations - Selectica
408-545-2492

lsoppn@selectica.com



InternetSpeech Announces Partnership with Selectica to Voice Enable E-Commerce Web Sites


San Jose, CA -- January 23, 2001 -- InternetSpeech, a leading audio Internet Service Provider, today announced a partnership with Selectica™, Inc., provider of Internet Selling Systems (ISS) for e-Businesses, so that customers may take advantage of voice enabled e-commerce Web sites using any telephone.

By accessing e-Commerce sites powered by Selectica and InternetSpeech over the telephone, users will be able to hear options, make choices and buy products using speech recognition technology.

Customers can shop online using Web sites powered by Selectica's ISS and InternetSpeech's netECHO technology. For example:

  • Customers can shop for a car -- choose a model, select a color and trim, and decide on extra options -- and receive an MSRP quote.
  • Small business owners can assess their insurance needs, review the options available, apply for quotes, and select a policy by phone.
  • Office managers can research a company's networking offerings, based on their business needs, and purchase the product using voice commands.

"This partnership will make e-Business applications even easier, allowing customers who prefer to use the phone a simple and easy way to conduct 'on-line' transactions," said Dr. Emdad Khan, president and CEO of San Jose-based InternetSpeech. "We expect Internet voice applications to increase dramatically over the next few years as e-Commerce sites look to expand their customer base and offer simple and easy ways to gather information and conduct transactions."

"Voice access to Web sites holds tremendous potential to take e-Commerce to a new level," said Dr. Sanjay Mittal, vice president of engineering and CTO of Selectica.

About netECHO:
netECHO automates the process of voice-enabling Web pages without the manual, costly and time consuming process of rewriting them into Voice Extensible Mark-up Language. It integrates text-to-speech, speech recognition, telephone interface, multimedia and intelligent agents to read pages in real-time.

About InternetSpeech:
InternetSpeech, a privately held company headquartered in San Jose, Calif., develops, markets and supports an Audio Internet Browser, netECHO, which provides audio-based telephone access to the Internet for businesses and individuals. The company's patent-pending technology can be bundled with other products, such as traditional computer-based Internet access, or voice mail, and can be customized to meet individual business needs, such as employee access to Intranet sites. InternetSpeech also offers business software that automates the process of voice-enabling a company's Web site, furthering development of the "voice Web."

InternetSpeech launched its netECHO consumer product nationwide in November 2000. For more information about InternetSpeech, visit www.InternetSpeech.com, or call 1-408-360-7730.

About Selectica Inc.:
Selectica, Inc. (Nasdaq: SLTC) provides an e-Business platform that effectively transforms the way companies sell, service and compete. Selectica's ISS, a comprehensive, Internet-architected application suite, accelerates the process of selecting, configuring, pricing, and purchasing complex products and services. Selectica's ISS increases productivity across all sales channels by improving every step of the sales process - from needs analysis and product configuration to order capture and renewals. Selectica's customers include industry leaders such as BMW, Cisco Systems, Dell Computer, Hewlett-Packard, Highmark Blue Cross Blue Shield, Juniper Networks, and Rockwell Automation. Selectica is headquartered in San Jose, Calif. The company's Web site is located at www.selectica.com.

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 expectations, beliefs, hopes, intentions or strategies regarding the future. 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, the factors and risks discussed in Selectica's Registration Statement on Form S-1, as amended, and filed with the Securities and Exchange Commission.

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Selectica is a trademark of Selectica, Inc. All other product and company names may be trademarks of the companies with which they are associated.


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