PRESS RELEASES

Mercado Positioned in the Visionaries Quadrant in Leading Advisory Firm's 2007 Information Access Magic Quadrant

Evaluation based on Ability to Execute and Completeness of Vision

PLEASANTON, CA, September 20, 2007 - Mercado Software, the leading provider of eCommerce search & merchandising solutions, today announced that it is included in the Visionaries quadrant of Gartner's Information Access Magic Quadrant, published earlier this month.

Mercado provides site search, navigation and merchandising solutions to more than 150 multi-channel and SMB retail brands in the United States, Canada, and Europe. With Mercado, merchants have unprecedented control over site merchandising – without the need for IT assistance. As a result of deploying its software and on-demand searchandising products, Mercado's clients commonly realize immediate and significant conversion rate and average order value (AOV) increases.

"We are extremely proud of our achievements over the past three years, and are thrilled to be placed in the Visionaries quadrant by Gartner," says Corey Leibow, President and CEO of Mercado. "Given the breadth of criteria used to evaluate vendors, we are very pleased by our ranking and by what I believe is an acknowledgement of our strength in eCommerce."

About the Magic Quadrant
The Magic Quadrant is copyrighted 2007 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Mercado Software
Mercado is the leading eCommerce search & merchandising solution provider for SMB, 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.

Gartner, Inc., "Magic Quadrant for Information Access Technology" Whit Andrews, Sept 5, 2007

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

###