Calyx Software Withdraws Motion for Injunction Against Ellie Mae

Dublin, CA—JUNE 7, 2004—Ellie Mae today announced that Calyx Software withdrew its motion for a preliminary injunction with respect to Ellie Mae's Encompass® product after Ellie Mae demanded withdrawal of the motion.

Ellie Mae gave notice that it would seek Rule 11 sanctions unless Calyx withdrew the motion. Federal Rule of Civil Procedure 11 prohibits the filing of legally and factually frivolous motions that are designed solely to harass. Subsequently, Calyx withdrew its motion, acknowledging that it did not have enough information to prosecute its motion.

Ellie Mae has invested tens of thousands of hours and millions of dollars developing Encompass®. It is a breakthrough mortgage management system that contains unique and powerful features that have gained widespread recognition in the industry. Ellie Mae is confident that its product does not infringe on any rights of Calyx. Ellie Mae believes that Encompass' success and Calyx's own failure to hold its customer base in the marketplace have driven Calyx to substitute litigation for competition. Ellie Mae will continue to vigorously defend against any claims by Calyx that Encompass infringes Calyx's rights.

About Ellie Mae, Inc.

Dublin, California-based Ellie Mae, Inc., winner of the 2003 Inman Innovator Award for Most Innovative Company in the mortgage and real estate industries, is the leading provider of desktop and web-enabled mortgage industry productivity technology. Ellie Mae's ePASS Web-transaction platform is the industry standard, connecting more than 30,000 third-party mortgage origination companies with leading wholesale and correspondent lenders and 90,000 settlement service providers. Ellie Mae products include the Encompass mortgage management system, Contour and Genesis 2000 loan origination software, Executive Web Sites and Ellie Mae Docs. To learn more about Ellie Mae, call (888) 955-9100 or visit www.elliemae.com .

Copyright © 2004 Ellie Mae, Inc. All rights reserved. Ellie Mae®, ePASS®, Encompass®, Contour™, Genesis 2000®, Executive Websites™, Ellie Mae Docs™ are the sole property of Ellie Mae, Inc.