ANDALE SETS THE STANDARD FOR WEB'S MOST PROFITABLE ECOMMERCE CHANNEL

New Andale Merchant Network Helps Online Auctions "Grow Up" With Universal Automated Checkout, Live Customer Support and Buyer Rewards

Mountain View, Calif. – May 30, 2000 – Andale™, Inc. today announced the auction industry's first branded Merchant network designed to be made up of some of the highest volume, most profitable, and well-respected sellers online. The Andale Merchant network standardizes the auction experience, increases customer service levels and reduces risk for both buyers and sellers on eBay, Yahoo!, Amazon.com, and other public eMarkets through powerful web-based services and innovative merchandising programs. With auction selling growing at 192% and projected to exceed $5 billion this year – 80% of which will be done by professional businesses – the Andale Merchant network brand will stand for trusted sellers, buyer rewards, customer service, and the fastest, easiest automated checkout available.

"Much like Visa and MasterCard have created a merchant network for payment processing in the offline world, Andale is working to establish the first merchant network for eCommerce that helps to bring higher standards to what has become a MAJOR sales channel for businesses," said Munjal Shah, CEO and co-founder of Andale, Inc. "In fact, the average gross margin for businesses selling on auction sites is 40%, making this one of the most profitable segments of eCommerce."

Shah continued, "It is time for eMarkets to have the same, professional framework that has stood for trusted business, unprecedented convenience and buyer rewards. The Andale Merchant network will help drive an already rapidly growing industry to reach a new level of maturity."

Buying from an Andale Merchant
As a result of the Andale Merchant network, people who buy from an Andale Merchant will know that they are doing business with some of the most trusted auction sellers on the web. Immediate proof of this is an average of 700 positive feedback ratings attributed to Andale merchants. This means that the seller has sold at least 700 items to satisfied customers on the markets where they do business. In addition to this level of trust, buyers will receive unique "Buyer Rewards" for doing business with an Andale Merchant. For example, through June 7, 2000 buyers will receive a rebate on shipping charges for any auctions they win, up to $3.20 (details on the Andale site at app.vendio.com).

Buyers will also experience Andale's ExpressPay, the first automated checkout in the auction industry that spans multiple sites, allowing both parties to finalize a sale faster and easier than before. A new standard in eCommerce convenience for auctions, Andale's ExpressPay supports a variety of payment options, VISA, MasterCard, Paypal, checks, Billpoint, Amazon 1-click, or money orders eliminating the time consuming back and forth email messages normally required to finalize a transaction.

In addition to faster checkout, Andale's Auction Advisors are available via a toll free phone number and email to answer any questions for auction buyers, bringing an unprecedented level of personal service to the auction industry. The Andale Merchant network guarantees buyers the same fast and easy eCommerce experience across marketplaces, a higher standard of customer service, and rewards for shopping on auction sites.

Andale Merchant Benefits
The Andale Merchant network is designed to create a preference for Andale Merchants with programs and services that build trust, ensure convenience and offer rewards for buying. It represents an important move in the industry, by also allowing merchants to sell three times the merchandise, on more sites, in one-third of the time and effort. In fact, Andale Merchants' report that their ads receive on average, 35% more bids and ultimately may end up commanding a higher ending sales price. Today, there are 200,000 registered members of the Andale Merchant network who are responsible for more than $100 million in annualized auction transactions and serve millions of buyers worldwide.

Andale Merchant Richard Birnbaum has been able to sell more than a million dollars in merchandise on auction sites, selling such high profile name brands as Prada, Versace, Georgio, Armani and others. According to Birnbaum, "Andale is the greatest thing for high-volume sellers. With it, I am able to increase the amount of items I list for sale by more than 30% per month, and this is having a positive effect on revenues. I am excited to be a part of the Andale Merchant network."

In order to increase the visibility of the Andale Merchant network, Andale is kicking off an aggressive Auction Heroes advertising program that will showcase Andale Merchants and drive buyers to Andale sellers. The program supports Andale Merchants by encouraging buyers to seek out Andale seller ads due to the high level of customer service they can expect as well as the shopper rewards (free shipping, buyer lotteries, etc.) offered through the Andale Merchant network.

On the service side, each Andale Merchant is assigned their own Andale Auction Advisor to answer questions, give strategic advice and counsel, and support the eCommerce sales process. Auction Advisors are available from 8:00 am to 8:00 pm Pacific time during weekdays and on weekends from 9:00 am to 6:00 pm Pacific time to help Andale Merchants build their bottom line. Andale Auction Advisors also help support Andale Merchant's buyers, providing that first line of customer service.

"Andale is showing some real prowess in understanding what it takes to be an effective selling partner for small businesses leveraging eMarkets, and this will only benefit their customers going forward," said Lara Abrams, senior analyst with Aberdeen Group, "By empowering the small business to be successful selling through multiple online channels, such as public auction sites, B2B marketplaces, and Web storefronts, the company brings a much wider business opportunity to the small business owner."

About Andale