Strong Track of Delivering Measurable Total Cost Reductions through Procurement Draws Leading Companies to ICG Commerce
Company Adds Eight New Customers During First Quarter Alone, Expands Business with Several Others As Market Continues to Validate Procurement Services Provider Model
PHILADELPHIA - Wednesday, May 28, 2003 - ICG Commerce, a leading procurement services provider, today
announced key business results through Q1 of 2003. ICG Commerce added eight leading companies to its customer base
during the first quarter alone, including Kellogg's, APL and Coca-Cola Enterprises. In addition to attracting new
customers, the company's strong track record of delivering major procurement-related cost reductions has helped expand
relationships with several existing customers, including Delta Air Lines, Timken and Nordstrom.
Ongoing macroeconomic pressures continue to drive companies to look for areas in which to cut costs, and
procurement is standing out among forward-thinking enterprises as the greatest opportunity to achieve that objective
rapidly. A recent PURCHASING magazine survey of supply executives at more than 500 firms found that nearly 80
percent of those polled are facing new cost or price reduction responsibilities. By leveraging a comprehensive offering
focused on optimizing the entire procurement cycle with sourcing and category expertise, dedicated transaction
management support as well as advanced source-to-pay technology, ICG Commerce is uniquely positioned to serve the
needs created by this growing trend.
Along with the many Fortune 500 organizations turning to ICG Commerce for procurement support, industry analysts
continue to validate the importance of leveraging both expertise and technology for sourcing and transaction
management needs, an idea represented in the company's procurement services provider (PSP) model. In a recent
research report, Aberdeen Group made the following comment: "Enterprises utilizing PSPs have been able to improve
spending coverage, reduce costs for goods and services, employ industry best practices, leverage the latest procurement
technologies and streamline source-to-pay processes - all without taking on the risks and assets required to achieve
such results…Enterprises not considering procurement outsourcing should be asking why."
In addition to expanding its customer base, ICG Commerce grew the transaction volume processed through
RealExchange, the company's purchase-to-pay platform, by more than 140 percent when compared with the same
period last year. During early 2003, ICG Commerce also introduced a new buyer/supplier portal designed to provide
customers and partners with the most current information on and easy access to the company's comprehensive suite of
procurement tools and services.
These moves follow the closing of a $35 million equity financing round at the beginning of the year, in which eight
funds contributed capital to support the growth and development of ICG Commerce's offering.
"The number of new and expanded customer relationships we established in the first quarter speaks to the significant
need in the marketplace for more sophisticated procurement capabilities as well as the immediate value companies are
deriving from our solution set, " said Edward H. West, ICG Commerce chief executive officer and chairman of the
board. "We look forward to accelerating the delivery of total cost reductions through sourcing, order and payment
processing and spend visibility as well as through the introduction of additional solution enhancements over the course
of the year."
About ICG Commerce, Inc.
ICG Commerce (www.icgcommerce.com) is the leading Procurement Services Provider delivering total procurement
cost savings through an unmatched combination of deep expertise and hosted technology. ICG Commerce provides a
comprehensive range of solutions to help companies identify savings through sourcing, realize savings through
implementation and transaction management and drive continuous improvements through category management. ICG
Commerce Inc., a privately held company founded in 1992, is a member of Internet Capital Group's (Nasdaq: ICGE)
network of partner companies and has been honored as a Forbes' Best of the Web: B2B and UPSIDE Magazine Hot
100 company as well as had its executives recognized among iSource Business' "Pros to Know".
Contacts:
Genevieve Brill
ICG Commerce
215-649-1494
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