WESTLAKE VILLAGE, Calif., Feb. 21, 2000 (PRIMEZONE) -- Need2Buy.com, Inc. (www.Need2Buy.com), a leading business-to-business (B2B) online marketplace for buyers and sellers of electronic components, today announced a joint venture with Mitsubishi Corporation to develop a B2B e-Commerce site for the fast-growing electronic components market in the Far East.
The new venture, Need2Buy-Asia, plans to offer OEM buyers, distributors and component manufacturers in the Far East a leading edge, comprehensive Internet solution for their component sourcing and distribution needs. Need2Buy will have a 60% stake in the joint venture, while Mitsubishi will invest the remaining 40%. The site, which is expected to launch during the third quarter of calendar 2000, will aim to help industry participants increase the efficiency of their traditional business processes, while enabling them to expand their base of trading partners.
"Mitsubishi's local market knowledge, dominant presence and vast contacts in the Far East along with our proven business methodology and robust technology infrastructure form a solid combination," said Maury S. Friedman, chairman and chief executive officer of Need2Buy. "Together we are well-positioned to provide thousands of businesses in the region with the tools to reap immediate cost savings and efficiency benefits."
Need2Buy-Asia will provide services that cater to the unique characteristics of the electronic components market in the Far East. Accordingly, Need2Buy and Mitsubishi will assess the needs of a variety of industry participants for content and commerce functionality prior to launching the site.
"The goal of this joint venture is to develop a localized version of Need2Buy's innovative Internet application that will create considerable value for all participants," said Hajime Kimura, the chief operating officer of Mitsubishi Corporation's Information Systems and Services Division. "We are very pleased to be partnering with the premier e-Commerce marketplace in the electronic components industry."
The joint venture substantially increases the universe of buyers and sellers that will have access to Need2Buy's Global Marketplace. Domestic OEMs will have the ability to source components from distributors and component manufacturers in the Far East, while U.S.-based vendors will be able to considerably expand their customer base into the Asian market.
The partnership with Mitsubishi follows shortly after Need2Buy's establishment of an office in Munich, Germany on January 31st, which will serve as the headquarters for the company's European operations that are expected to launch during the second quarter of calendar 2000.
"The continued rollout of our international operations represents a tremendous milestone as we position Need2Buy as a truly global marketplace," added Mr. Friedman. "Establishing strong regional positions with global distribution channels will result in the most effective e-Commerce solution for our users."
Mitsubishi Corporation was an investor in Need2Buy's first round of financing.
About Need2Buy.com
Westlake Village, California-based Need2Buy.com (www.Need2Buy.com) is a leading online marketplace for buyers and sellers of electronic components. Its electronic commerce solution leverages the company's proven Internet technology and extensive industry expertise to streamline the traditionally inefficient electronic components supply chain. Its distributor-neutral approach creates an open and scalable marketplace that is highly attractive to both buyers and sellers. Since its launch in May 1999, the Need2Buy Marketplace has enabled thousands of users to conduct transactions more efficiently than ever before. Need2Buy plans to gradually expand its range of vertical offerings to serve a wide spectrum of business-to-business e-commerce needs.
The company was founded in January 1999 and currently has 45 employees. In December 1999, Need2Buy received its first round of financing from a premier group of strategic and financial investors, including Mitsubishi Corporation, Arthur Bilger and Kevin Wall from Shelter Ventures, Trust Company of the West, Jump! Investors and Eli Broad, the CEO of SunAmerica Corp. Additional information is available by contacting Investor Relations at (818) 597-5757 x1291 or by e-mail at info@need2buy.com.