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Mercado Software Announces that Recreational Equipment, Inc. (REI) has Selected the Mercado Search & Merchandising Solution

PLEASANTON, CA - June 1, 2006 - Mercado Software, a leading provider of e-commerce search and merchandising solutions, today announced that Recreational Equipment, Inc. (REI) will deploy Mercado CSN™ on REI.com and REI-OUTLET.com. REI will also use Mercado UniClass™ to enhance the quality of its product data – enabling better, faster, and more accurate attribute-based search and navigation.

During the past six decades, REI has grown into the leading supplier of specialty outdoor gear and clothing. REI serves the needs of outdoors people through 83 retail stores in 25states, as well as by direct sales via the Internet (REI.com and REI-OUTLET.com), telephone and mail order. Today, REI is the nation's largest consumer cooperative with more than 2.8 million members.

"After a comprehensive review and selection process, which included vendor demonstrations, Mercado's solution stood above the competition," said Brad Brown, REI vice president for online and information services. "We are looking forward to working with the Mercado team in implementing their software on REI.com and REI-OUTLET.com. This implementation will dramatically improve our customers' online shopping experience."

"We're very excited to have been chosen by a market-leader like REI," said Corey Leibow, CEO of Mercado. "Our merchandising capabilities are consistently recognized as the best, and we're confident that REI will quickly see the results of our advanced merchandising technology and solution-partner approach."

About Mercado Software
Mercado is the leading e-commerce search & merchandising solution specialist for multi-channel retail and B2B organizations. By enabling a superior buying experience and equipping business managers with a powerful platform on which to execute merchandising strategies, online businesses can aggressively grow revenue and foster customer loyalty. Sears, Williams-Sonoma, JCPenney, Macy's, Target, Tower Records, MSN Shopping, Caterpillar and OfficeMax, are some of the companies benefiting from Mercado's solutions. For more information about Mercado Software, please visit www.mercado.com or call (888) 376-1400.

About REI
REI is an outdoor retail co-op dedicated to inspiring, educating and outfitting its 2.8 million active members and the community for a lifetime of outdoor adventure. Founded in 1938 by a group of Pacific Northwest mountaineers seeking quality equipment, REI operates retail stores nationwide, two online stores – REI.com and REI-OUTLET.com – and an adventure travel company, REI Adventures. REI offers products from all of the top brands for camping, climbing, cycling, hiking, outdoor fitness, paddling, snow sports and travel, including its own line of award-winning gear and apparel. While anyone may join or shop at REI, members pay a one-time $15 fee and receive a share in the company's profits through an annual member refund based on their purchases. As an active supporter of the communities in which it does business, REI is committed to promoting environmental stewardship, increasing access to outdoor recreation through education, volunteerism, gear donations and financial contributions.

Media Contact:
Mark Shapiro
858-573-0736
mshapiro@davismarrin.com

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