Andale Gains Momentum, Online Business Sellers Rapidly Adopt New Service

MOUNTAIN VIEW, Calif., – Oct. 3, 2001 – Andale, Inc. (http://app.vendio.com), the leading provider of auction management tools and services for online sellers, today announced that rapid adoption of its Commerce Management Service among online business sellers has contributed to significant increases in customers and revenues.

The Commerce Management Service, launched in July, is an integrated suite of sales automation products for merchants selling across multiple online markets, including Internet auction sites, branded storefronts, any Web site, and via direct email.

"The Commerce Management Service was built in direct response to customer requests for a more integrated way to sell in all the online channels where customers buy," said Munjal Shah, CEO of Andale. "And in the three months since launch, our customers have overwhelmingly adopted this new platform."

Customers and Revenue Increase

The number of Andale registered sellers now exceeds 1 million.

Today, 83 percent of all listings on eBay use at least one Andale product (including Andale's free counter for tracking), up from 22 percent a year ago.

Largely as a result of rapid customer adoption of the Commerce Management Service, revenues for Q3, ending in September, will be up 50 percent over the previous quarter, ending in June. Revenues increased 500 percent from Q3, 2000 to Q3 of this year. Moreover, revenue has grown, on average, by 20 percent month-to-month over the last 15 months.

Freedom for Customers

More than 90 percent of existing Andale customers have already upgraded to the new platform. Thousands of new customers join each week.

"Andale provides one console with a simple interface to manage all my auctions sales and customer follow up," said Ron Saxton of Chase to the Checkers, an auto racing collectibles business. "Andale hides the complexity of online selling, automates the tasks that used to be so labor-intensive and makes me more productive, and – in turn – more profitable."

According to recent Andale customer surveys, three fourths of new customers feel Andale is a good value, and almost half of new users say the reason they selected Andale is because they believe it is the best auction management tool on the market.

Huge Market. Great Opportunity

"Lean economic times require sellers to do more with fewer resources," said Shah. "By giving our customers freedom to sell in all online channels, we created a service flexible enough to appeal to a broad base of sellers – from the power seller to the enterprise."

Online auctions are the fastest growing segment of the eCommerce marketplace – more than $8 billion in annual sales and more than 30 million shoppers – attracting the largest collection of buying power on the Internet. With less than 10 percent of the merchants on eBay contributing 80 percent of all sales, it's clear auctions are no longer limited to hobbyists.

About Andale

Andale is the leading provider of commerce management services for automating and integrating all aspects of online sales across multiple channels – Internet auction sites, branded storefronts, any Web site, and direct email. Merchants using one or more Andale services now drive more than 83 percent of all listings on eBay each week. Andale has secured exclusive technology integration and distribution partnerships with eBay, the leading online auction marketplace, PayPal, the number one person-to-person payment provider, and Intuit, the leading provider of financial software to the small business community. Andale has received $70 million in financing from Bowman Capital Management, Texas Pacific Group (TPG), Tarrant Venture Partners, Accel Partners, Mohr Davidow Ventures, Oak Hill Venture Partners and other angel investors. For more information visit http://app.vendio.com.

Copyright 2001 Andale, Inc. All rights reserved.