PRESS RELEASES

Mercado Software Expands Leadership Team with the Appointment of Ken Holmes as Chief Financial Officer

PLEASANTON, CA, May 1, 2007 - Mercado Software, the leading provider of eCommerce search and merchandising solutions, announced today it is continuing to support its exploding growth worldwide with the hiring of Ken Holmes as the company's Chief Financial Officer.

As Mercado's CFO, Mr. Holmes will be responsible for managing finance, human resources and administration. He will be working closely with Chen Dorot, Mercado's Director of Finance, who will continue to provide strategic financial guidance and run day-to-day financial management for Mercado's Israeli and European operations.

Mr. Holmes brings over 17 years of financial experience in the software and high-tech industries, most recently as CFO for BackWeb Technologies, a leading provider of offline web application enablement. At BackWeb, he was responsible for accounting, finance, information technologies and human resources. Prior to BackWeb, he was the CFO of ProjectInVision, a provider of project services automation technology. Earlier, he served as Corporate Controller of Enlighten Software, helping lead it through an IPO. Mr. Holmes has a Bachelor of Science in Business Administration (Finance) from the University of San Francisco.

"Ken brings significant management and administrative expertise, and experience working with top-tier venture capital organizations," said Corey Leibow, President and CEO of Mercado. "As a rapidly growing and maturing company, Mercado needs recognized professionals like Ken to help bring us to the next level of business success as we continue our market penetration worldwide."

About Mercado Software
Mercado (www.mercado.com) is the leading eCommerce 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 Holdings Corp., Guess?, Inc., Williams-Sonoma Inc., OfficeMax, Macy's, ShopNBC, Delightful Deliveries, and Organize.com 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.

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

###