Omnexus E-Business Model Thriving At One-Year Mark, Plastics eMarketplace Reaches All Benchmarks in First Year, Moves Forward with Aggressive Plan for Second Year

Omnexus, the global, neutral eMarketplace created by the plastics industry for the plastics industry, marks its first anniversary October 2, 2001, having successfully reached every scheduled benchmark set by the company since its inception. Omnexus officially launched its service on October 2, 2000, with founding members BASF, Bayer, Dow, DuPont and Ticona, and has since added more than 15 other members.

“We have met all our initial goals during our first year, which has bolstered our confidence as we look ahead to aggressive growth in our second year and beyond,” said Peter Dunning, Omnexus CEO. “The response to Omnexus from plastics processors and suppliers validates the model we have created for the future of eProcurement in the plastics industry.”

A recent report from analyst group AMR Research supported Omnexus as a “compelling” business model going forward in a redefined Internet economy now focused on integration as an indicator of success. The report cited the technological benefits shared by consortia like Omnexus with member suppliers and business-to-business customers, noting “accelerated standards development” that “set the stage for cheaper, easier integration.”

In its first year, Omnexus has grown its business-to-business technology platform into a global service representing products from more than 20 industry suppliers, 14 of which are equity partners. The company’s early success in the North American market has accelerated its expansion globally, and Omnexus now employs more than 80 people throughout the United States and Europe to serve a growing international customer base.

 “Chemical and Process Industry Outlook: Integration, Integration,

Integration,” AMR Research, August 15, 2001.

The online marketplace has continually enhanced its technology to enable customers not only to search and compare resins and equipment among multiple suppliers, but complete transactions without any human interaction through order placement, tracking and settlement. Omnexus also serves as an information hub providing continuously updated news of the plastics industry through its internal news service.

“Omnexus has brought us real cost savings,” said Jim Ashton, chief financial officer of Entec Engineered Resins, one of Omnexus’ newest customers. “We place orders every week with three different Omnexus suppliers. These are suppliers we have dealt with for years. With Omnexus, we’ve seen a reduction in our order entry errors, almost immediate confirmation of each order directly from the supplier, and we can now track all of our purchases from all of these suppliers in one place.”

Among the targets reached in Omnexus’ first year:

 Membership has grown to more than 10,000, representing a tenfold increase

since May 1, when Omnexus began actively soliciting members beyond its core

group of pilot customers.

 Monthly transaction liquidity has reached multi-million dollar levels, and is

on target to exceed $ 100 million in the next 12 months.

 Omnexus is already realizing significant income from numerous identified

revenue streams beyond transaction fees.

 Omnexus is on track to achieve all of its financial goals, while remaining

below budget on its expenditures.

Key dates and deadlines met in the company’s first year include:

 October 2, 2000: The Omnexus portal launches less than six months after

founders BASF, Bayer, Dow, DuPont and Ticona agree to create an online

marketplace for the plastics industry.

 November 30, 2000: Omnexus completes its first order within hours of

transaction capabilities going live in the United States, between Dow and

custom injection molder Technimark.

 December 6, 2000: The first order occurs between a customer, ITW Fastex, and

multiple suppliers simultaneously, in real time.

 March 19, 2001: Omnexus launches in Europe by offering its site in four

languages - English, German, French and Spanish.

 May 1, 2

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