VERTD Verticalnet (MM)

Verticalnet, Inc. (Nasdaq:VERTD), a leading provider of on-demand supply management solutions, today announced dramatic increases in customer utilization of the Verticalnet XE Supply Management Suite. Verticalnet's primary measure of customer volume, electronic negotiation events in its XE platform, has surged over the past 12 months, averaging greater than 15% growth per month over the last 12 months. A secondary measure, supplier participation in electronic negotiation events on the XE platform, has grown by an average exceeding 50%, per month in this same time period. The increases in customer volume and supplier penetration reflect the dramatic increase in value experienced by Verticalnet customers through their focused programs to drive adoption of Verticalnet's On Demand XE spend analysis and strategic sourcing solutions. Even as customer volume has been building, Verticalnet's primary measure of operating efficiency, average cost-per-event, has improved dramatically over the past 12 months. In 2006 to date, cost-per-event on the XE platform has declined an average of 15% per month. Verticalnet's On Demand software-as-a-service (SaaS) approach to supply management provides a scalable solution for customer growth without the corresponding cost impacts experienced by conventional packaged software vendors. Increasing customer satisfaction is also driving Verticalnet's customers to expand globally, with the number of users in China, France, Hong Kong, Japan, Taiwan, and the United Kingdom up by more than 34% over the last 12 months. Since November 2006, overall user satisfaction with Verticalnet software, services, and support has improved 21% with significant majority of respondents either satisfied or extremely satisfied with their overall experience with the Verticalnet solution. "Verticalnet's on-demand sourcing application has been an excellent platform for our business," says Tony Kniffen, Vice President of Business Development for The Sourcing Authority. "Verticalnet's reliable solutions and customer support services have enabled our international customer base, and provided a strong solution to deliver our value proposition." Kniffen concludes, "With Verticalnet we're continuing to deliver on our core mission 'State-of-the-Art Sourcing. Simplified.'" The Sourcing Authority, a Verticalnet customer since early 2006, is a supply management consultancy offering sourcing strategy consulting and negotiation event execution. "The value and affordable scalability of our on-demand, SaaS solutions are driving supply management performance to a higher level than we have ever experienced before," said Luke Schneider, Verticalnet Senior Vice President of Operations. "As we continue to set records for volume, cost management and customer satisfaction, we are encouraged by the overall health of the XE product line in terms of new customers, year over year revenue increases, and overall customer usage." The Verticalnet XE Supply Management Suite provides an easy to use, rapid to implement, and comprehensive solution to support online negotiation, sourcing process standardization, contract creation and collaboration, spend analysis, and supplier performance management. About Verticalnet Verticalnet is a leading provider of on-demand supply management solutions that enable companies to identify and realize sustained value across the supply management lifecycle. Going beyond traditional spend management and sourcing approaches, Verticalnet's solutions provide the visibility, insight and process control required to maximize the sustained value realization from supply management. Large enough to help customers attain supply management success worldwide, yet nimble enough to provide individual attention and remain focused on customer priorities, Verticalnet is helping leading Global 2000 companies and mid-market enterprises move their supply management efforts to the next level through an optimal blend of software, comprehensive services, and deep category knowledge and domain expertise. The Verticalnet XE Supply Management suite is available on-demand and includes: -- Verticalnet(R) Program Manager-- lowers the total cost of ownership and improves productivity through sound and re-usable program and process management -- Verticalnet(R) Spend Manager-- a fast, intelligent, and repeatable spend analysis solution for identifying, evaluating, and quantifying enterprise-wide sourcing opportunities while measuring compliance -- Verticalnet(R) Negotiation Manager-- accelerates and improves negotiated savings from strategic sourcing through online auctions and eRFX events -- Verticalnet(R) Procurement Manager-- simplifies and improves control over the procurement process to help companies realize the maximum cost savings identified through supplier sourcing and negotiation -- Verticalnet(R) Contract Manager-- provides real-time insights into contract obligations, exposures, expirations, changes and renewals delivering greater control, reducing costly oversights and minimizing supplier risk -- Verticalnet(R) Performance Manager-- enables companies to effectively track and manage supplier performance, contract compliance and identify potential areas of supplier risk To learn more, please visit us at www.verticalnet.com.