Presented to Stanford University 7 January 2000

Opportunity There are no “open” B2B buying communities on the Internet There is no “open-open” business-to-business model for doing electronic commerce on the internet. All software solutions are closed systems: buyer-side driven programs are very expensive to install, and are restricted to a single buyer. Supplier-side programs, such as TPN register and vertical.net create a middleman that does not add value but increases the complexity of the process All buyer-side software require the buyer to capture and load all supplier information. Suppliers unknown to the buyer have no vehicle to identify themselves.

The mission of the enterprise is to quickly establish an open B2B market environment Mission Enable buyers to maximize efficiency and reduce cost of procurement while simultaneously vastly broadening list of suppliers Enable suppliers to broaden their market, while simultaneously significantly reducing their cost of sale Provide a trade exchange system that maximizes trading efficiencies though enabling both buyers and suppliers to dynamically set trading models based upon real time supply and demand conditions Provide an on-line open market procurement environment

Target markets for the concept are large, decentralized buying organizations Target Markets Initial Focus on University market 3,500 universities with decentralized buying model Each university has 6-20,000 suppliers University buying was $192 billion in 1998

Target Markets GSA has mandated all federal government purchases under $2,500 must be made with Purchase Card by ,000 state and municipal governments spent approximately $392 Billion in 1998 The 15,000 secondary school boards spent approximately $227 Billion in 1998 Hospitals and medical centers have over 37,000 buyers which spent approximately $387 Billion in 1998 The Service is a template for any vertical buyer market Universities Federal Government School Boards Medical Other Vertical Markets Local Government Associations

Delivering a service that meets today’s market requirements and is positioned for the next generation Go to Market Strategy iCOMS, FDMS and Cynaptec have partnered to provide an end- to-end solution Cynaptec provides of on-line sourcing services ICOMS provides Payment engine for clickable RFQ responses FDMS provides supplier (merchant) services

The service lowers purchasing costs and simplifies the buying process Easy to use efficient RFQ process Access to new suppliers through ‘community’ of like- type buyers Faster and lower cost purchase process Better enriched procurement data (level III) Better informed purchasing decisions Supplier product data specifically organized to enable buyers to readily find what they are seeking Benefits Buyer Broader market reach Efficient selling process Reduced cost of sale Access to new buyers through ‘community’ of like-type buyers Cross sell products to new markets Tools to assist targeting and successfully selling into specific vertical markets Agent based negotiation Supplier

Cynaptec On-line sourcing systems enables buyers to find suppliers buyers to find products through structured database based upon open UN/SPSC product classification for electronic commerce send and receive requests, bids and information organize suppliers on-line readily identify and have preference for suppliers that meet buyer pre-requisites Q1/2000 Functionality

Activebid.com  Bids can be pasted from existing offers on suppliers web-site or created dynamically within minutes  Supplier can place orders in bids responding to RFQs into any document  Buyer can click on a bid and immediately place an on-line order  Advice of orders generated automatically to buyer, supplier and fulfillment center  Suppliers can send special (unsolicited) offers to buyers  Support for discount programs  Clearing includes all Level III data Q1/2000 Functionality

Virtual Trade Exchange A Virtual Trade Exchange System will be support multiple commerce models tendered offers from supplier proffers from buyers negotiated (can be initiated by buyer or supplier) auctions Coalition “dynamic” purchases RFQ and Bid process Q3/2000 Functionality

Enhanced tools BuyTools assists buyers find suppliers Agents to define criteria for selecting suppliers Agents to define criteria for evaluating offers Summary evaluation and ranking of offers Q3/2000 Functionality

University Through providing major benefits at no cost to buyers a“push” model is crafted Tactical Strategy Supplier pCard Issuer FDMS

A powerful business-to-business ecommerce model The model provides the critical mass of buyers and suppliers necessary to establish a true virtual Open Trade Zone The technology behind the “arena” will be robust and versatile Unique sets of tools and 3rd generation agents enabling buyers and suppliers to continually refine the rules and processes of commerce The business model and technology combine to provide buyers and suppliers with major efficiencies and cost savings Uniqueness