ANDALE AND PAYPAL FORM STRATEGIC ALLIANCE TO OFFER INTEGRATED AUCTIONS, E-COMMERCE STORES AND PAYMENT TO MILLIONS OF USERS

The best of the online services team up to offer small businesses a total solution

MOUNTAIN VIEW, CALIF., – Mar. 20, 2001 – Andale, (app.vendio.com), the leading provider of sales management tools and services for automating online selling across auctions and e commerce stores – and PayPal – the leading provider of online payment services – today announced they have formed a strategic alliance to become the single largest provider of a complete set of totally integrated services for small businesses. This agreement makes Andale the exclusive preferred auction management service and online store solution for PayPal's 7 million users. PayPal becomes the preferred payment method for Andale's 1.5 million users.

This agreement represents the first significant alliance designed to help merchants extend their businesses and to integrate both auctions and storefronts, along with an integrated inventory and payment method. In addition it extends the business potential of both Andale and PayPal to include both the $6 billion dollar auction market and the $6 billion dollar online e-commerce market.

As a significant part of the agreement PayPal will make Andale Stores the preferred online store solution for the new PayPal Shops. With Andale Stores small businesses can drive the millions of shoppers on leading auction sites such as eBay (NASDAQ:EBAY), Amazon.com (NASDAQ:AMZN), and Yahoo! (NASDAQ:YHOO), to their own online store where they can combine auction wins with fixed price purchases in one sales transaction. Through co-branded marketing and technology integration, PayPal users are given opportunities to build an Andale Store directly from the PayPal site. In return Andale Stores will offer PayPal as the default payment option to sellers.

"We are pleased that Andale is PayPal's solution of choice, especially for the new PayPal Shops," said Munjal Shah, CEO of Andale. "With approximately $6 billion in online sales being completed off the Internet auction sites, Andale is helping businesses capitalize on the power of their successful, trusted purchases on auction sites to drive repeat sales on their online store. Together, Andale and PayPal are combining the advantages of auction selling and e-tailing."

In addition to the preferred e-commerce stores provider, the agreement also makes Andale the default auction management solution for PayPal, giving users a seamless integration of auction management and billing solution.

"As the leading payments service for online auctions, PayPal chose to partner with Andale because it is the leading company offering merchants the integration of auction selling and storefront selling," said Peter Thiel, founder and CEO of PayPal. "Both PayPal and Andale have cross channel solutions, making this alliance to integrate their services very powerful for small businesses."

Ted Patton, Vice President at Intuit for QuickBooks, stated: "This is an extremely influential combination of companies; together Andale and PayPal present the full solution for online merchants. We are excited to present their joint services to QuickBooks users".

About Andale

With 1.5 million small business customers, Andale is the leading provider of sales management tools and services for automating and integrating all aspects of online selling across multiple channels – auctions, e-commerce stores and direct mail. Andale is the only company helping small business tap into both the $6 billion Internet auction market and the $6 billion dollar direct e-commerce market ("off" auction) with one, integrated sales solution. Andale has exclusive technology relationships with eBay, Intuit, and PayPal. Over the last year, Andale sellers were responsible for approximately $3 billion in gross merchandise sales online and now drive more than 55% of all listings on eBay each week. Andale has received $70 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 visit app.vendio.com.

About Paypal

PayPal is the instant and secure online payment service that allows people and businesses to send and receive money by e-mail from bank accounts or credit cards. With nearly 7 million members and growing, PayPal is the world's first and largest Internet-based payment service, and the #1 financial site on the Internet, according to PC Data Online. PayPal is the preferred payment service for online auctions, online community and group Web sites, and is seeing tremendous growth in e-commerce transactions for small businesses. PayPal members send approximately $8 million in more than 160,000 payments each day. Free to consumers, PayPal can be used from PCs or web-enabled mobile phones. Business users pay transaction fees to receive payments through PayPal.

Founded in 1998 by Peter Thiel and Max Levchin, PayPal is a privately held company headquartered in Palo Alto, California. PayPal was named one of the 50 Most Important Private Companies in the World by Red Herring and one of the Top 25 New Companies by Fortune Small Business. The PayPal Website has been cited as among the "Best of the Web" by Forbes, Time, PC Magazine and U.S. News & World Report. For more information, please visit http://www.paypal.com.

EDITORIAL CONTACT:
Debbie Clima
Lutchansky Communications, Inc.
408 938-9050 X16
408 234-8746 Cell Phone
debbie@lcomm.com

Darcy Hansen
Applied Communications
415-365-0222
dhansen@appliedcom.com