LAS VEGAS, Jan. 14, 2002 (PRIMEZONE) -- PurchasePro (Nasdaq:PPRO) today announced that Honeywell (NYSE:HON), a $25-billion diversified technology and manufacturing leader, has signed a software license agreement to use PurchasePro e-Source, the industry's most comprehensive reverse auction software tool, across all of its divisions throughout the corporation.
PurchasePro e-Source reduces direct and indirect procurement costs by 10 to 60 percent and enables companies to conduct reverse auctions with its suppliers, in real-time, over the Internet, lowering costs and making sourcing easier. To date, Honeywell has held six reverse auctions through e-Source, drawing approximately $10 million in high bids and $7.5 million in low bids, generating implied savings of $2.5 million or 22 percent savings versus historical costs.
PurchasePro's e-Source license is the second tool Honeywell purchased from PurchasePro during 2001. Last January, Honeywell's Home & Building Control division contracted with PurchasePro to create an e-procurement solution to reduce its procurement costs, seamlessly integrate into its Oracle-based corporate financial system and provide Honeywell with consulting services throughout its nationwide supply chain.
As the companies teamed together, the marketplace has flourished, with Honeywell adding more than 900 buyers and 160 suppliers into the application in a mere nine months. As the marketplace continues to grow, so do the transactions. In November, nearly $2 million in purchase orders went through the Honeywell marketplace; and Honeywell expects transaction volume to continue to scale throughout 2002 as additional buyers and suppliers are added to the marketplace.
"Our agreement with Honeywell further confirms the efficiency, utility and return on investment of PurchasePro's software and its commerce network," said Chris Benyo, senior vice president of PurchasePro. "Our sourcing and procurement tools complement each other beautifully. While the e-Source procurement platform drives down prices, e-Procurement locks in those prices and assures that sourced prices are realized, product is delivered and shipments are received. We expect our e-commerce tools to immediately impact Honeywell's procurement process and more importantly, its bottom line."
About PurchasePro
PurchasePro(r),www.purchasepro.com, is a B2B e-commerce leader with the stated goal of providing software to enable enterprises of all sizes to gain universal access to the world's largest commerce network. The PurchasePro commerce network comprises more than 300,000 businesses, authorized to buy and sell, and powers hundreds of private-label marketplaces. PurchasePro provides the following B2B e-commerce solutions: e-Procurement for enterprise-wide procurement; e-Source for strategic sourcing, v-Distributor for online distributors; and e-MarketMaker for Internet market makers.
This news release may include forward-looking statements, which are subject to the "Safe Harbor" created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve certain risks and uncertainties that can cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements represent only the views of certain members of management and are based on limited information available to us now, which is subject to change. We have no current plan to update these statements. Actual results may differ substantially from what we say today and no one should assume at a later date that the forward-looking statements provided herein are still valid. They speak only as of today. For more information about these risks and uncertainties, see the SEC filings of PurchasePro.com, Inc., including the section titled "Factors That May Affect Results" in its 10-K filing for the period ended December 31, 2000, and its 10-Q for the quarter ended September 30, 2001, which are available from the company on request and on the Internet at the SEC's Website, www.sec.gov. Note: PurchasePro is a service mark of PurchasePro.com Inc. All other trademarks or registered trademarks are the property of their respective owners.