Armstrong Teams with FreeMarkets to Enable Global Building Materials Company to Purchase Goods and Services Through B2B eMarketplace

Business Wire, July 18, 2000

Business Editors

PITTSBURGH--(BUSINESS WIRE)--July 18, 2000

FreeMarkets, Inc. (Nasdaq:FMKT), the original and world's leading B2B eMarketplace, today announced that it has signed a new agreement with Armstrong World Industries, Inc. (NYSE:ACK), a leading manufacturer and marketer of floor and ceiling products.

Under the terms of the agreement, FreeMarkets will provide Armstrong with access to its B2B eMarketplace, which includes industry-leading online auction technology and services including: technical operations, industrial market making and access to a global database of suppliers.

Armstrong's North American and European operations will use the FreeMarkets(R) B2B eMarketplace to conduct strategic purchasing for direct materials (goods that go into finished products), indirect materials and services.

"Armstrong is committed to adopting cutting edge technologies that will enhance the strength of our operations, and we're aggressively embracing B2B e-commerce initiatives to increase efficiency and effectiveness in our global purchasing operations," said Steven R. Borkgren, vice president of purchasing, Armstrong. "FreeMarkets has proven its ability to deliver results across a wide range of industries, and we look forward to using their B2B eMarketplace to create benefits for our organization and our customers."

"Armstrong is a leading manufacturer of interior finishing materials with high standards of quality, and we are pleased that they have chosen our B2B eMarketplace to source strategic goods and services for their operations worldwide," said Jim Zuffoletti, vice president and general manager of diversified manufacturing, FreeMarkets. "Our B2B eMarketplace has a proven track record of delivering savings to customers in the construction materials industry, and we look forward to helping Armstrong achieve savings on the purchase of goods and services while providing access to best-in-class suppliers worldwide."

About Armstrong

Armstrong World Industries is a global leader in the design, innovation and manufacture of interior finishing solutions, most notably floors and ceilings. Based in Lancaster, PA, Armstrong has approximately 18,000 employees worldwide. In 1999, Armstrong's net sales totaled more than $3.4 billion. Additional information about the company can be found on the Internet at www.armstrong.com.

About FreeMarkets

FreeMarkets is the original and world's leading B2B eMarketplace, with online markets for industrial parts, raw materials, commodities and services. The Company has executed online auctions for over $5.4 billion of purchase orders to date, and created potential estimated savings of more than $1 billion for its customers. Since 1995, FreeMarkets has created online auctions for products in more than 100 supply verticals, including injection molded plastic parts, commercial machinings, metal fabrications, chemicals, printed circuit boards, corrugated packaging and coal. More than 4,000 suppliers from over 50 countries have participated in the FreeMarkets B2B eMarketplace. FreeMarkets is the only B2B eMarketplace that includes industry-leading online auction technology, technical operations, industrial market making services, access to a global database of suppliers and supplier research, call center support to buyers and suppliers in over 30 languages, and marketplace rules. The Company's current customers include Visteon Corporation, United Technologies Corporation, The Quaker Oats Company, Owens Corning, Eaton Corporation, Emerson Electric Company, FirstEnergy Corp., SmithKline Beecham plc, Navistar International and Delphi Automotive Systems Corporation. FreeMarkets can be found on the Web at www.freemarkets.com. FreeMarkets is a registered trademark of FreeMarkets, Inc.

Forward-looking statements

Statements in this press release that are not historical facts, including those statements that refer to FreeMarkets' plans, prospects, expectations, strategies, intentions, hopes and beliefs, are forward-looking statements. These forward-looking statements are based on information available to FreeMarkets today, and FreeMarkets assumes no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including, without limitation, market acceptance of FreeMarkets' B2B eMarketplace, the competitive nature of the market for business-to-business online auction services, FreeMarkets' ability to retain and increase revenue from existing customers and to attract new customers, FreeMarkets' ability to attract and retain qualified personnel, the size of the market for used equipment and surplus inventory, the demand for online auction and other asset recovery services by buyers and suppliers, and FreeMarkets' ability to integrate acquisitions. Risk factors are described in more detail in FreeMarkets' filings with the Securities and Exchange Commission.