ANDALE ANNOUNCES BIG FIRST YEAR, EXPANDING INTERNATIONALLY WITH EBAY, GOING LIVE WITH INTUIT, AND OVERALL STRONG OUTLOOK FOR 2001

With more than 38 percent of eBay's domestic listings adding Andale counters directly from the eBay site, eBay now takes agreement with Andale to the UK, Canada, Japan, Australia, France, Germany and Italy

MOUNTAIN VIEW, CALIF., – Jan. 23, 2001 – Andale, Inc. (app.vendio.com), the leading provider of auction management tools and services for online sellers, today announced that under the terms of its exclusive agreement with eBay, Andale will provide counters and counter-related services to eBay's (NASDAQ: EBAY; www.ebay.com), auction marketplaces internationally. In the next few weeks, eBay sellers will be able to add counters directly from the eBay marketplaces in the UK, Canada, Japan, Australia, France, Germany and Italy, accessible right from the listing process. Counters are the most utilized value-added tool by auction sellers, next to image hosting, and are the sellers' gateway to auction management.

Andale also announced today that the results of its exclusive relationship with Intuit (NASDAQ: INTU; www.intuit.com), leading supplier of business software to small and medium size businesses, will go live next month giving QuickBooks users integrated access to Andale's software as its recommended solution for online selling. These partnerships as well as its successfully-completed merger with Honesty has more than tripled the number of sellers using its auction-related tools and services to a total of 600,000 and led to a very successful first year of operation.

In fact, today Andale counters, image hosting, listing tools, and auction management services account for more than 3 million listings on eBay alone each week (55% of all eBay listings), which is up from less than 1 million at the start of Q2 2000. Andale sellers were responsible for approximately $3 billion in gross merchandise sales in 2000. Andale also announced today a milestone first year that produced an increase in revenue of more than 600% over the last two sequential quarters combined.

"With our early success in raising $60 million at the beginning of 2000 and our revenue growing so strongly each quarter, we plan to continue to execute rapidly – heavily investing in the development of new technology," said Munjal Shah, CEO of Andale. "It's truly been a whirlwind year that has made us the single largest provider of auction management services in the industry."

Shah continued, "The deal with eBay was part of Andale's strategy of leveraging counters to help introduce millions of sellers to the value of auction management services. This strategy has really paid off. With eBay taking us global this quarter, we predict even more impressive growth in the months ahead."

International eBay sellers will now be able to take advantage of Andale's popular Honesty counters through eBay's localized sites in the United Kingdom, Canada, Japan, Australia, France, Germany, and Italy. This is the first time that eBay will integrate a partner's technology onto its international sites, Andale will also host a co-branded website, accessible throughout the eBay marketplace, where sellers can view their counter statistics and monitor auction activity.

"Andale has been successful tapping into a significant market opportunity, building a strong management team, and efficiently managing operations," said George Zachary, General Partner at Mohr, Davidow Ventures. "We have great confidence in their ability to execute."

Auction and Business Management Services from Andale empower today's Internet auction sellers, from the independent business seller all the way up to medium-sized corporations. Andale tools and services include Honesty-branded image hosting, counters, and one-step listing tools. For higher-volume sellers, Andale's Auction Management Services completely automate and manage all aspects of online selling – including product merchandising and inventory, financial management, customer communications, and a secure, one-stop payment-processing system. Andale recently finalized its merger with Honesty, moving 60% of the Honesty workforce to its California headquarters and closing the Chicago office. To eliminate redundant positions as a result of the merger, Andale reduced its workforce by 12.6%. Andale currently employees 100 people and is actively looking to fill six positions in California.

About Andale
Andale (Ahn-du-lay) app.vendio.com is the first Web-based Auction Business Management service for online sellers that makes it possible to sell twice as much merchandise, on multiple markets such as eBay™, eBay Motors, Amazon.com™ Auctions, Yahoo!™ Auctions and others, with half the amount of time and effort. Andale offers a best-of-breed resource for automating and managing all aspects of online selling – from product merchandising, to inventory and financial management, to customer communications and supplier sourcing – on multiple Net markets. In July 2000, Andale merged with Honesty.com, the highest trafficked auction community and support site in the world to create the industry's largest auction management service provider for sellers. Andale has received $60 million in financing from Bowman Capital Management, Texas Pacific Group's (TPG) Tarrant Venture Partners, Accel Partners, Mohr Davidow Ventures, Oak Hill Venture Partners and other angel investors. For more information call, 1-800-450-7515 or visit app.vendio.com.

Copyright 2001 Andale, Inc.
All rights reserved.

Andale and Honesty are trademarks of Andale, Inc. eBay is a trademark of eBay Inc. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

EDITORIAL CONTACT:
Mary Camarata
Andale, Inc.
408-605-4879
mary@andale.com

Debbie Clima (formerly Debbie Foos)
Lutchansky Communications, Inc.
408-938-9050 x16
debbie@lcomm.com