Andale Reaches Cash Flow Breakeven, Revenues Up Over 300 % From Last Year

Andale Expands Agreement with eBay, Becomes Preferred Solution Provider

MOUNTAIN VIEW, Calif., – April 4, 2002 – Andale, Inc. (http://app.vendio.com), the leading provider of auction management tools and services for online sellers, today announced the company has achieved cash flow breakeven - six months ahead of its estimated timeline. This milestone is the result of strategic product investments in 2001 that led to strong year-over-year revenue growth of more than 300 percent.

On the heels of attaining cash flow breakeven, Andale announced a strategic agreement with eBay, The World's Online Marketplace ?, in which Andale becomes an eBay Preferred Solutions Provider and a member of eBay's Developers Program.

"We are extremely grateful to our customers, our employees, and partners for helping us achieve this financial milestone," said Munjal Shah, CEO of Andale. "Our merchants have helped power the online auction miracle. Last year, all online auction merchants combined sold more than $10 billion - that's growth of 100 times, over 9,900 percent, in four short years. They should be commended for their entrepreneurialism and success. Our employees have been committed, diligent, and brilliant. They have stood by the company through many challenges in the last two and a half years. And our partners have been unwavering in their friendship and support. As a CEO, I am honored to be part of this team."

Andale has shown an impressive and consistent growth pattern, while many other companies have been struggling to survive," said Safa Rashtchy, senior research analyst, US Bancorp Piper Jaffray. "We believe the online commerce and trading marketplace is still ripe with huge opportunities for companies such as Andale, PayPal and others that provide a value-added service to millions of small businesses. This important milestone solidifies Andale's position in this thriving market."

Customer Growth From Product Innovation

A continuous cycle of product innovation fuels Andale's growth of new customers. Over the last two years, the company has launched major and minor improvements at least twice a month. As a result, the company has added more than 1,000 paying customer a week for more than six months. Revenue has grown every month for the past 21 months.

Andale customer, Premiere Props, sees Andale as a way to extend value. Premiere Props markets, authenticates, packages and distributes exclusive movie props and wardrobe to the general public. Premiere Props is handling the auction of props and wardrobe from "A Beautiful Mind," winner of four Oscars this year including best picture, in addition to movies such as "Resident Evil," "When We Were Soldiers," and the upcoming "The Scorpion King," starring WWF's The Rock.

"Given the volume and variety of movie props and wardrobe we sell to the public through auction, Andale is essential to run our business efficiently," said Dan Levin, vice president of marketing for Premiere Props, "From scheduling and listing, to tracking and closing, Andale makes everything easier, and provides us with a great value that we can pass on to our customers."

"Great companies prove themselves in difficult times," said Jim Breyer, managing partner of Accel Partners, and Andale board member. "By investing strongly in product development at a pivotal time for the company and the market, Andale has emerged with the widest breadth of products for online merchants. This leadership strategy will continue to serve the company and its customers well into the future."

Stronger eBay Relationship, Continued Growth

Moving forward, Andale is strengthening its strategic relationship with eBay and continuing to invest in product innovation as a way to ensure customer satisfaction and growth in the market.

To further enhance customer performance, Andale has signed on to use the eBay Application Programming Interface (API) and become a part of the eBay Preferred Solution Provider Program (PSP). Using the API, Andale provides its customers with more reliable, secure and scalable integration into the eBay marketplace. As a PSP, Andale will help large volume eBay sellers effectively market their merchandise on eBay.

"By automating important business tasks for thousands of eBay sellers, Andale helps increase the number of items listed on eBay, which further increases the value for eBay shoppers," said Alex Kazim, vice president of eBay's Platform Solutions Group. "We congratulate Andale on its successes and look forward to working with them on helping our sellers sell more efficiently on eBay."

Being named an eBay PSP is the latest strategic agreement between eBay and Andale. The two companies have a three-year agreement, making Andale the sole provider of integrated counters and counter related services to eBay sellers internationally.

"When we started Andale, we knew auctions would be the sweet spot in the market," said Shah. "eBay has exceeded all expectations by maintaining a tight focus on building a community and improving its service. Strengthening our partnership with eBay will help drive continued success for Andale and our customers."

Andale intends to invest gains in revenue growth in the continued improvement and efficiency of the company's products and services to give online merchants the tools they need to succeed. In addition to the eBay API, Andale will continue to add new features to the company's Web-based services, as well as develop new products designed more for enterprise-level sellers.

About Andale

Andale is the leading and largest 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. The company gives Power Merchants - the new small businesses of the 21st Century - the tools they need to be innovative and efficient in online selling. Andale has more than 1 million registered users and the company's counters service now drives more than 90 percent of all listings on eBay each week. Andale has secured exclusive technology integration and distribution partnerships with eBay, the leading online auction marketplace, and PayPal, the number one person-to-person payment provider. Andale has received $61 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 app.vendio.com.

Copyright 2002 Andale, Inc.
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