SELECTICA ANNOUNCES FIRST QUARTER FISCAL 2004 RESULTS.

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SAN JOSE, Calif., Aug. 1 /PRNewswire-FirstCall-AsiaNet/ --

Selectica, Inc. (Nasdaq: SLTC), a leading provider of Interactive Selling Systems (ISS) for e-Business, today announced results for the first quarter ending June 30, 2003.

Revenue for the first quarter was $11.8 million, up 80 per cent from the quarter ending March 31, 2003. The loss for the first quarter was $1.8 million or $0.06 per share compared to a loss of $6.4 million or $.21 per share for the prior quarter. Cash and cash equivalents were $117.6 million at the end of the quarter.

Dr. Sanjay Mittal, Chairman & CEO of Selectica said, "We are pleased that we were able to report an improved quarter based on the large projects on which we are currently engaged and we are happy to report that our largest and most innovative implementations are proceeding according to plan." Dr. Mittal added, "During the quarter we focused aggressively on engaging with new customer opportunities. While the sales cycle for enterprise software in this market is lengthy, we are seeing more customer interest and activity in our sales pipeline. We are hopeful that this significant increase in activity will convert to deals in future quarters."

The company will conduct a conference call today for the quarter ending June 30, 2003. As part of the call, the company will provide guidance for the quarter ending September 2003.

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