ANDALE HONORED AS A "HOT 100" PRIVATE COMPANY BY UPSIDE MAGAZINE

In A Separate Award, CEO Also Named As "Up & Comer" By BusinessWeek Magazine

MOUNTAIN VIEW, CA., – May 21, 2001 – Andale, (app.vendio.com), the leading provider of sales management tools and services for online sellers, was recently honored as an UPSIDE Hot 100 company; and in a separate award, its CEO has been singled out as one of 10 "Up & Coming" leaders by BusinessWeek online. For the UPSIDE award, Andale was selected by a prestigious panel of editors, venture capitalists, financial analysts and market researchers as one of the top 100 privately held companies for 2001. Chosen for its technological innovations in the area of online sales management coupled with its strong financial position, Andale's strength is proven by its over 1.5 million total users.

Created 6 years ago by UPSIDE Media CEO, David Bunnell, the Hot 100 List was the first annual award to provide recognition for privately held technology companies. "While economic cycles in technology come and go, the kinds of companies that the editors of the magazine have recognized in this list are ones that have proven, year after year, to be those companies that often rise to the top of the next cycle," said Bunnell. "They are companies and people who bring innovation and new technology to the forefront."

Over 800 companies were nominated for this year's award. Companies were judged on the basis of their technological achievements, customer acceptance of products or services, financial performance, industry partnerships, financial backing, and management experience. The complete list of UPSIDE Hot 100 Award winners is published in the June 2001 issue of UPSIDE and is available online at http://www.upside.com.

"These awards affirm that we've found the 'sweet spot' in e-commerce by providing professional tools that dramatically simplify doing business on the web for companies of all sizes, from large liquidators to retail merchants to small mom & pop shops," said Munjal Shah, CEO of Andale. "It's a win-win for all involved since everyone benefits, and as a result, Andale has become the small business partner of choice, enabling us to grow in revenue even in today's tough marketplace."

In addition to the UPSIDE honor, Andale's CEO was also singled out by BusinessWeek as one of 10 "Up & Comer" CEOs. According to the BusinessWeek article, "Andale's streamlining of the auction process has helped to kick off an online renaissance of small businesses, many of which couldn't afford to run businesses in the physical world." The article continued to say that "Andale has left most rivals in the dust by capturing some 900,000 customers, who pay a 3% fee on their take from each finished auction."

Online auctions continue to be the strongest performers in any corner of the e-commerce space. In fact, over $1.6 trillion in transactions took place on online auctions last year and every second on eBay, there is $251 worth of transactions taking place. As a result, today's businesses are increasingly turning to Internet auctions to move surplus stock or unwanted goods. Other liquidators, shop owners and stay-at-homers use the auctions as a marketing tool to supplement their retail businesses and/or web site businesses. Small business owners use the auctions to eliminate the middleman and reach their customers directly via auction sites such as eBay, Yahoo Inc. and Amazon.com Inc.

Andale Auction and Business Management Services empower today's Internet auction sellers from the independent business seller all the way up to medium-sized corporations, by removing the time-consuming tasks involved in managing their auction businesses and simplifying the ad posting process. Andale tools and services include Honesty-branded image hosting, counters, and one-step listing tools. For higher-volume sellers, Andale 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.

Previous to Andale's UPSIDE Hot 100 award and BusinessWeek honor, Andale also recently received the 2001 Crossroads A-List award which is awarded to the best new products and services proven effective at moving forward on today's business priorities. The Crossroads A-List Awards are based on an in-depth research process including in-depth due diligence that validates demand, clarifies vendor positioning, and verifies vendors' track records.

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 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 listing 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 UPSIDE

UPSIDE Magazine provides timely news and commentary on the issues, people, technology, and capital that are changing the technology business world. UPSIDE is delivered to more than 300,000 executive-level readers. Contact Ashley D. Fitton at afitton@upside.com for more information.

EDITORIAL CONTACT:
Debbie Clima
Lutchansky Communications, Inc.
408 938-9050 X22
408 234-8746 Cell Phone
Debbie@lcomm.com