PRESS RELEASES

Mercado Software Names Corey Leibow as New President and CEO

PALO ALTO, CA - January 18, 2005 - Mercado Software, a leading provider of e-commerce search, browse and merchandising solutions announced today the appointment of Corey J. Leibow as President and Chief Executive Officer, replacing Menachem Cohen. Mr. Leibow also will be joining Mercado's Board of Directors.

"Under Cohen's guidance at the helm, Mercado pioneered site search technology for e-commerce and established itself as a leading player in this segment. Corey Leibow's 22 years of executive leadership creating successful strategies and delivering strong results will guide Mercado to a new level of achievement" said Chemi Peres, the chairman of Mercado's Board of Directors. Peres added, "Leibow has a track record of spurring innovation, generating growth, supporting customers, and increasing revenues in leading-edge software companies. The appointment re-affirms Mercado's commitment to developing and delivering the business solutions required as online commerce continues to grow and mature."

Prior to Mercado, Mr. Leibow was Executive Vice President of worldwide sales and services at SEEC/Asera Inc., a Kleiner Perkins Caufield & Byers backed provider of software solutions for the enterprise. Mr. Leibow also held the positions of COO at ClickSoftware, an enterprise software company specializing in field service solutions and Executive Vice President of sales and professional services at Ajuba Solutions a B2B integration company which was acquired by Interwoven. Before Ajuba, Leibow, as Vice President of worldwide sales operations of Cadence Design Systems, the world's largest supplier of EDA technologies, helped grow revenues from $400 million to over $1.2 billion.

"Internet commerce has become the gateway to new growth in retail and B2B business," said Corey J. Leibow. "Mercado has a history of innovation, solid financial backing and product offerings focused on eCommerce Search, Browse and Merchandising solutions. I am excited to join Mercado and look forward to strengthening its position and commitment of providing a suite of business solutions essential to propelling e-commerce companies into profitable, sustainable enterprises of the future."

About Mercado Software
Mercado is a leading provider of e-commerce search, browse and merchandising solutions for B2B and B2C businesses. Through offering online customers a superior buying experience and equipping business managers with a powerful platform to implement merchandising strategies, online retailers and businesses can constantly grow their business results. Sears, Williams-Sonoma, JCPenney, Macy's, Target, Tower Records, Blockbuster, MSN, Caterpillar and OfficeMax, are some of the companies benefiting from Mercado's solutions. Mercado's unique technology, combined with its commitment to innovation and its experienced team, delivers bottom line results for its customers. Such benefits include increased revenues, higher productivity, reduced operational costs, and improved customer satisfaction. For more information about Mercado Software, please visit www.mercado.com or call (888) 376-1400.