http://www.activebid.com

Presented to

Stanford University7 January 2000

OpportunityThere 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 environmentMission

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 1-1-2000

7,000 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

Fed

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overn

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Sch

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Board

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Med

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Other Vertical MarketsL

ocal

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Associa

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s

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

BuyerBuyer 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

SupplierSupplier

CynaptecCynaptec

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.comActivebid.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