Perfect Commerce And Pantellos Merge

Perfect Commerce, Inc., a leading provider of On-Demand Supplier Relationship Management solutions (SRM) and The Open Supplier Network (The OSN), and Pantellos, a leading supply chain solutions company today announced a definitive agreement to merge, pending shareholder approval. The move brings together the largest independent supplier network in the world (The OSN) and a strong On-Demand SRM company, with a leading supply chain services enterprise to create the largest On-Demand SRM solutions provider.

The merged company will continue under the name Perfect Commerce, Inc., and maintain a single focus: to help customers improve bottom line performance and meet financial objectives by simplifying the SRM process, reducing costs and enhancing operational efficiencies. Combining The OSN, industry leading On-Demand SRM solutions, and supply chain expertise, positions the company for expansive growth and will deliver tremendous value to clients, associates and shareholders. The combined company will continue to deliver results to its cross-industry Fortune 1000 customers, including an emphasis on the energy industry as a key market.

Perfect Commerce, in operation since 1999 and one of the early pioneers in business-to-business eCommerce, has experienced strong growth in the past 4 quarters adding 42 new clients to a roster that now includes more than 160 Fortune 1000 companies. Pantellos, founded in 2000, brings to the merger more than 30 leading clients in the energy industry. The two companies handled more than 5 million transactions with dollar volumes of $10 billion over the past 12 months. Combined, they expect revenues of more than $30 million in 2004 and more than $40 million in 2005. Together the company will serve more than 500 clients including 51 Fortune 500 companies.

According to the Alert, Perfect Commerce Merges With Pantellos In Quest For On-Demand Leadership, published by Pierre Mitchell at AMR Research on October 26, 2004. "AMR Research feels that Pantellos' domain expertise in utilities and complex supply management processes should be a strong complement to Perfect's on-demand SRM business model, and companies who are looking for credible options to accelerate their supply management efforts and leverage their existing SRM investments should definitely look hard at Perfect Commerce."

"Duke Energy supports the planned merger between the two companies," said James Chuber, vice president, global sourcing & logistics, Duke Energy, and a client of Pantellos. "We expect that the blending of Perfect Commerce's technologies with Pantellos' expertise and services will support our pursuit of supply chain excellence."

Perfect Commerce's current chairman and CEO, Sandy Kemper, will remain the chairman and CEO, while the current president and CEO of Pantellos, Jim Neikirk, will be named president of the combined company. The company will remain privately held and headquartered in the metropolitan Kansas City area, with offices in Texas, California, Nevada and France.

According to Donald G. Barger, senior vice president and chief financial officer with Yellow Roadway, "Perfect Commerce has been an excellent partner enabling Yellow Roadway to achieve significant improvement in our procurement ROI. We see the merger as a win-win. The strength and stability of the company, along with its expanded breadth and depth, will benefit both suppliers and buyers."

"Pantellos will bring deep supply chain capabilities to our solution offering," said Kemper. "The value proposition of the merger will allow Perfect Commerce to establish a formidable presence as the number one On-Demand SRM provider. Combining forces with Pantellos will result in expanded offerings and a greater depth of SRM expertise, enabling the company to provide an unprecedented level of service to our clients."

"Customers are looking for integrated sourcing-to-settlement solutions and services," noted Neikirk. "With Perfect Commerce's world class technology platform, its expansive trading network and Pantellos' established community of supply chain specialists, the combined company will provide in-depth, industry-leading sourcing, event execution and business process redesign expertise. We believe that no other On-Demand SRM company even comes close to what we can now provide our customers."

Under the terms of the agreement, shareholders of Pantellos will receive newly issued shares of stock from the company. The merger is expected to close during the fourth quarter of the calendar year 2004.

About Perfect Commerce, Inc.
Perfect Commerce delivers On-Demand Supplier Relationship Management solutions and connectivity to trading partners via The Open Supplier Network (The OSN). The company is a leading SRM solutions provider with more than 160 Fortune 1000 clients, over 160,000 users and 8,000 suppliers.

Perfect Commerce provides a suite of solutions for the complete sourcing-to-settlement process. The company enables businesses to simplify the complex challenges of spend management, sourcing, contract management, procurement, electronic invoice presentment and payment. Perfect Commerce helps its clients succeed by delivering accelerated return on investment, streamlining the supplier facing process and enhancing buyer-supplier relationships. Using Perfect Commerce, clients have reduced costs an average of 15 percent, compressed cycle times by 75 percent, and significantly improved procurement processes and analytics.

Headquartered in the metropolitan Kansas City area, with offices in California, Nevada and France, Perfect Commerce can be reached at 877-871-3788 or www.perfect.com.

About Pantellos
Pantellos is a leading supply chain solutions company in the United States. Pantellos delivers deep industry knowledge and expertise around a broad suite of supply chain tools and services to its trading community of more than 30 buyer and 500 supplier companies. Pantellos Marketplace solutions enable customers to electronically transact on a host of direct and indirect goods and services through either direct integration with its Marketplace or via managed Web solutions. Since inception, companies have used Pantellos to source, procure and manage more than 100 categories of products and services. Pantellos offers supply chain solutions in the following categories: sourcing services, enterprise e-sourcing, e-procurement, contractor services management, e-settlement and program implementation. Established in 2000 by some of North America's largest utilities, Pantellos is based in The Woodlands, Texas, USA. For more information, please visit: www.pantellos.com.