FreeMarkets Announces New Agreement with Dana; Company Extends Strategic Sourcing Relationship With Leading Tier One Automotive Manufacturer

Business Wire, Dec 17, 2001

Business, Automotive & High-Tech Editors

PITTSBURGH--(BUSINESS WIRE)--Dec. 17, 2001

FreeMarkets, Inc. (Nasdaq:FMKT), the leading global provider of e-sourcing software and service solutions, today announced that it has signed a new agreement with Dana Corporation (NYSE:DCN), one of the world's largest suppliers of components, modules, and complete systems to global vehicle manufacturers and their related aftermarkets.

Under the terms of the agreement, FreeMarkets will continue to provide Dana with access to its e-sourcing software and service solutions, which Dana will use to source a variety of direct and indirect goods and services for its operations. Dana has been using FreeMarkets as a platform for sourcing goods and services online since September 2000.

"We are very pleased to be extending our relationship with FreeMarkets," said Bob McConahy, Director Supply Chain Management Fluid Systems Group, Dana Corporation. "Dana has set an aggressive e-sourcing agenda, and FreeMarkets provides us with the technology, supply market information, commodity expertise and services we need to reach our strategic goals."

To date, Dana has sourced over $850 million in goods and services through FreeMarkets. Among the items Dana has sourced: aluminum and various metals and alloys; metal pipe, tube and fittings; plastic injection molding; forgings; castings; chemicals; electrical connectors and wires; metal fasteners; printed circuit boards; scheduled air transportation; resins and polymers; spring and wire products.

"Dana is clearly a leader in the automotive industry in the adoption and implementation of e-business technologies, and we are pleased that they will continue to leverage our FullSource(TM) solution as part of their overall e-sourcing strategy," said Dan Willmer, Director and General Manager of the Automotive Sector at FreeMarkets. "We look forward to continuing to deliver ongoing savings and efficiencies to Dana through our industry-leading e-sourcing software and service solutions."

About Dana Corporation

Dana Corporation is one of the world's largest suppliers of components, modules, and complete systems to global vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 300 major facilities in 34 countries and employs approximately 75,000 people. The company reported sales of $12.3 billion in 2000. Dana's Internet address is www.dana.com.

About FreeMarkets

FreeMarkets is the leading global provider of e-sourcing software and service solutions, and operates the world's largest sourcing market. Through its unique combination of industry-leading, web-based software, in-depth supply market information, market operations and expert sourcing services, FreeMarkets has helped customers around the world source more than $25 billion in goods and services in more than 190 different supply verticals and identify savings of more than $5.2 billion. FreeMarkets can be found on the Web at www.freemarkets.com. FreeMarkets(R) and BidWare(R) are registered trademarks of FreeMarkets, Inc., and FullSource(TM) and QuickSource(TM) are pending trademarks 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, financial projections, strategies, intentions, 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' products and services, the competitive nature of the market for e-commerce products and services, FreeMarkets' ability to predict its revenues and earnings, FreeMarkets' inability to develop competitive new products and services on a timely basis, introduction of new products and services by competitors, declining or uncertain economic and industry conditions, FreeMarkets' ability to attract and retain personnel and other risk factors that are described in more detail in FreeMarkets' most recent Annual Report on Form 10-K/A, and its other filings with the Securities and Exchange Commission.