CHANNELADVISOR RESPONDS TO MARKETWORKS LITIGATION
Marketworks files lawsuit against market leader

Research Triangle Park, NC – June 27, 2006 – ChannelAdvisor, the leading provider of Channel Management Solutions (CMS), today learned a complaint has been filed against it in Fulton County Superior Court in Atlanta, Georgia by a competitor in the eBay seller space, Marketworks, Inc.  ChannelAdvisor understands that the complaint primarily centers around the hiring of a former Marketworks employee who was allegedly bound by a non-competition agreement forbidding employment with AuctionRover.com.  

Recently, many high profile and high volume eBay sellers upgraded from the Marketworks system to ChannelAdvisor’s Merchant offering.

“At ChannelAdvisor we prefer to compete in the marketplace instead of the courtroom,” said Scot Wingo, the CEO.  “We are somewhat mystified by this case, which appears to have no relationship to our company.  This case is completely without merit.  ChannelAdvisor plans to vigorously defend against the allegations and pursue all remedies available, including sanctions for frivolous litigation.”

AuctionRover.com is a company that in 2000 was merged into GoTo.com/Overture Services (which was subsequently purchased by Yahoo!); it has no corporate relationship to ChannelAdvisor.

About ChannelAdvisor Corporation
ChannelAdvisor Corporation provides technology and services that enable leading online retailers to maximize their products across multiple e-commerce marketplaces such as eBay, Amazon.com and Overstock.com, comparison shopping engines such as Shopping.com, Shopzilla, Nextag and Google Product Search and search engines such as Google, Yahoo! and MSN. In 2006, ChannelAdvisor managed over $1.6 billion in gross merchandise value (GMV) on behalf of its customers. ChannelAdvisor solutions combine best practices, on-demand software and integration technology to help retailers sell more products, faster, by automating labor-intensive, manual functions so they spend less time optimizing campaigns and more time solving marketing and business issues. ChannelAdvisor's customers include GSI Commerce, Sears, Brookstone, Abebooks and Motorola. ChannelAdvisor Corporation is headquartered in Research Triangle Park, NC with offices in Atlanta, Seattle, the United Kingdom, Australia and Germany. For more information, visit http://www.channeladvisor.com/.

Contact:
Ashley Jones
ChannelAdvisor Corporation
Ph: 919.349.4177
ashleyj@channeladvisor.com