Andale Leverages Recent Financing to Become the 'Bloomberg' for eBay

Andale' s New Suite of Smart Information Services Creates First Transparent Way to Buy and Sell on eBay

MOUNTAIN VIEW, Calif., - June 19, 2003 – Andale, Inc. (app.vendio.com), the largest provider of services for online buyers and sellers on eBay, today announced it closed a $2.7 million round of financing from existing investors Accel Partners; Mohr, Davidow Venture Partners; Oak Hill Venture Partners; and from new individual investors.

"Andale is a company that has made a business of providing valuable services to online sellers and buyers," said Jim Breyer, managing partner of Accel Partners. "As long standing investors, we've seen Andale control costs, increase revenues every month for the last 30 months, and sustain cash flow break even. Accel's additional investment demonstrates our confidence in Andale's new initiatives. We're excited to support the company as it reaches its next major milestones."

Andale is using these new funds to create a set of "smart" services that provide buyers and sellers with all the information and enhanced tools needed to enable transparent buying and selling on auction sites like eBay. Selling on online auctions is extremely competitive for both buyers and sellers. Today they are limited in the data they can access to indicate what is in demand, who is selling it, where is it being sold, what price it will sell for, and what margins they can expect after subtracting all of their marketing and merchandising costs. Selling without this information is like trading stocks without knowing the price of the last trade, how many units were sold, who sold the biggest blocks, what the earnings of the stock are, or how much money you made last month.

"Andale has a strong vision for this industry and is now pioneering new directions," said Safa Rashtchy, Senior Research Analyst - US Bancorp Piper Jaffray. "As sellers and buyers on eBay become more sophisticated, this new market of selling information to online merchants, while nascent now, may well become larger than the auction management tools market."

Andale's "Market Intelligence" - technology combines proprietary information sources and patented technology to aggregate, organize, and analyze the tens of billions of dollars in product sales that occur via online auction each year. Since Andale is the exclusive provider of hit-counters on eBay - an agreement that was recently renewed for three years - it is the auditor of record for measuring buyer interest and traffic to 80% of all items sold on eBay. Andale has combined this popular information with sales data from the last 52 weeks on eBay, along with other proprietary data sources, to create the richest repository of pre and post sale information for online auctions. To make sense of this vast repository, Andale developed special software that matches up items, is target specific, and shows only the most relevant. Unlike a stock market, where the stock symbol allows a customer to easily match all trades for the stock symbol "IBM", in auction data a Palm Pilot maybe sold as "Palm 7" or as "Palm VII". With hundreds of thousands of different combinations for various items, Andale's technology is vital for online buyers and sellers to be able to make sense of all of this trading information.

The first of its kind, Andale's Market Intelligence technology will be delivered to buyers and sellers in four ways: a "smart" search engine that automatically analyzes, ranks, and summarizes auction data; "smart" reports that give sellers detailed competitive analysis and business reporting, "smart" selling tools that recommend actions to take to maximize sales, and "smart" help where sellers and buyers can access reports and Andale staff to give advice and help them trade more efficiently. Exact details of Andale's new class of smart e-commerce information services will be unveiled at the end of June 2003 during eBay Live!

"I'm excited that our investors and employees support our new vision," said Munjal Shah, CEO of Andale. "It is simply to use the power of transparent information to make trading on the world's largest public online e-commerce platform a trust building and profitable experience. The more people know the more they tend to trust and the more likely they are to buy or sell profitably. I believe Andale is uniquely positioned to empower this next level of auction trading by doing for auctions what Bloomberg and other information services like it, did for stock markets."

About Andale
Andale is the largest provider of e-commerce services that help automate auction selling and empowers buyers and sellers with "smart" information they need to buy and sell almost anything online. Buyers and sellers use Andale to gain a competitive advantage in online selling and buying. Andale has more than 1.5 million registered users and the company's counters service now drives more than 80 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 has partnerships with Yahoo! Auctions, and Amazon.com. Andale has received $64 million in financing from Accel Partners, Mohr Davidow Ventures, Oak Hill Venture Partners, Tarrant Venture Partners, and other investors. For more information, visit app.vendio.com.

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