Global First for Premier Farnell; First Global Supplier, Incorporating Farnell and Newark, To Go Live With eMarketplace Procurement for BAE SYSTEMS, Via Exostar

Business Wire, Oct 29, 2001

Business/Technology Editors

LONDON--(BUSINESS WIRE)--Oct. 29, 2001

Premier Farnell plc (NYSE: PFP), the leading global business-to-business distributor of electronic and industrial components, today announced that it has gone live with the first ever global, end-to-end eProcurement solution for BAE SYSTEMS, the third largest aerospace and defense company in the world.

Premier Farnell, a leading global electronic components and industrial products distributor, is currently the only major supplier of this type to work with BAE SYSTEMS on eMarketplace technology and will gain significant competitive advantage with this connection.

The system will enable Premier Farnell Group to supply BAE SYSTEMS through Exostar, the aerospace and defence online trading exchange, founded by the blue chip consortium of BAE SYSTEMS, Boeing, Lockheed Martin, Raytheon and Rolls-Royce. BAE SYSTEMS buyers will have online access to a tailored product range, including 110,000 items from Newark in the US and 65,000 items from Farnell in the UK. The same eProcurement link provides Farnell UK and Newark USA with a "one-to-many" connection to all of the trading partners on the Exostar trading network.

Commenting on the collaboration, Colin Webster, Group Commodity Manager, BAE SYSTEMS, says: "Our primary goals for the Exostar project are clear cut - to automate our trading processes across the entire supply chain, including eProcurement and, by doing this, reduce our internal acquisition costs. We are in the very top tier of Premier Farnell's customers, in terms of size and service required, and we have always been impressed by how the company rises to meet our expectations with new, forward looking ideas. So, when we were selecting the first suppliers to trade via Exostar, Premier Farnell was at the top of our list."

Premier Farnell has held a Global Supplier Agreement with BAE SYSTEMS since 2000 and was approached by them earlier this year as an ideal candidate for the Exostar project. Premier Farnell has worked closely with BAE SYSTEMS throughout this year to produce customized catalogues tailored by country, which sit behind BAE SYSTEMS' firewall.

Authorized BAE SYSTEMS employees can then buy from the catalogue from anywhere in the world, with orders routed through the Exostar exchange which has an eProcurement infrastructure provided by CommerceOne. Further phases of the project will establish eInvoicing and ePayment capabilities to speed up and simplify the purchasing process still further.

BAE SYSTEMS' Director of eBusiness, Chris Coupland, says: "One of our key drivers for establishing Exostar is to drive standardisation through the Aerospace and Defence supply chain, and to enable our common suppliers to benefit from open and agreed standards."

BAE SYSTEMS' participation in eProcurement via Exostar will speed up transaction times and eliminate human error almost completely, by automating the entire buying process from the first click of the mouse through to the arrival of orders at Premier Farnell warehouses around the world. Premier Farnell has also provided links from the BAE SYSTEMS online catalogue straight through to its own websites, where customers can find expert datasheets and advice on relevant products. BAE SYSTEMS has been assigned a dedicated Premier Farnell Global Account Manager, who works exclusively on business between the companies.

Bob Herritty, International Corporate Accounts Director, Premier Farnell, sees this announcement as a major milestone: "Premier Farnell is the first distributor in this sector to achieve eProcurement integration for a customer and that is a tribute to the hard work and vision of our expert eCommerce team. We have put in place a sophisticated system that operates globally. Tailored customer solutions such as this really are the future of business and we're leading the way in how to make them a reality. We have many more eProcurement projects already in the pipeline and we look forward to strengthening our customer relationships even further."

Over the past three years, Premier Farnell has been implementing a major 'Investment for Growth' program, which has shifted the company's focus from a 'one size fits all' approach, to a service that is tailored for each individual customer. Its investment includes a visionary approach to eMarketplace trading and tailored, high-end eProcurement solutions for its larger clients, which has set Premier Farnell ahead of the competition.

About Premier Farnell plc

Formed in 1996, Premier Farnell plc was the first global business-to-business small order, high service distributor. It supplies a broad range of electronic, electrical and industrial products, and consumer spare parts to the maintenance, engineering, design and repair sectors. Premier Farnell operates in 22 countries and trades in over 100, with 4,800 employees worldwide. Listed on the London and New York Stock Exchanges, Premier Farnell recorded an operating profit for the year ended 28th January 2001 of (pound)115million ($173million) on sales of (pound)876million ($1.3billion). In 1999, the company began its 'Investment for Growth' programme. This aims to transform the company from a 'one solution fits all' approach into a highly customer-oriented, proactive organisation capable of providing high quality products and services to meet the individual needs of all its customers. For further information, visit www.premierfarnell.com