FreeMarkets Announces Agreement with Companhia de Electricidade de Macau; Leading Electricity Provider Selects FreeMarkets as Platform for Strategic Sourcing

Business Wire, Dec 18, 2002

Business Editors/High-Tech Writers

PITTSBURGH--(BUSINESS WIRE)--Dec. 18, 2002

FreeMarkets, Inc. (Nasdaq:FMKT), the leading global provider of enterprise sourcing software and services, today announced that it has signed an agreement with Companhia de Electricidade de Macau - CEM, S.A., (CEM) the sole provider of electricity to the Macau Special Administrative Region (SAR) of China. Under the terms of the agreement, CEM will use FreeMarkets(R) QS(TM), the industry's leading sourcing application, as its platform for strategic sourcing. Leveraging QS, and FreeMarkets' supporting market operations service offerings, CEM will structure and execute sourcing projects that drive savings and efficiencies across its operations.

"CEM is committed to adopting and implementing leading-edge technologies that will enable us to provide our customers with better service at better prices," said Antonio Chantre, Senior Manager, Procurement and Materials Department, CEM. "FreeMarkets QS is an innovative solution which we will use to automate our sourcing process and identify substantial savings and efficiencies that benefit our company and our customers."

Designed for sourcing professionals by sourcing professionals, FreeMarkets QS is a full-featured negotiation application that is ideal for automating, streamlining, and providing visibility into the sourcing project processes. Leveraging QS, companies can:

-- Create re-usable templates for RFI/Qs

-- Collaborate with and manage suppliers

-- Create and run a variety of competitive bidding and other negotiation activities

"We are very pleased that CEM has selected FreeMarkets QS as its platform for sourcing goods and services, and we look forward to providing the company with the technology and supporting services it needs to achieve its most strategic business objectives," said Jack Lee, General Manager, FreeMarkets Greater China.

"CEM is a pioneer among Asian utilities in the use of technologies that enhance operational performance, and we are very pleased to be serving the company," said Daryl Rolley, Vice President and Managing Director, FreeMarkets Asia Pacific.

About Companhia de Electricidade de Macau

Companhia de Electricidade de Macau - CEM, S.A., (CEM) was established in 1972 to supply electricity as an essential and reliable service to Macau. CEM currently has a total installed capacity of 397 MW and over 190,000 customers. The new Coloane B Power Station is poised to meet Macau's demand for electricity for the next decade. CEM is fully committed to continuously improve its operations standards and quality of service to customers, and support the well being of Macau population. Please visit CEM's website at www.cem-macau.com.

About FreeMarkets

FreeMarkets is the leading global provider of enterprise sourcing software and services. Through a unique combination of industry-leading software, expert sourcing services, global commodity expertise, and operations support, FreeMarkets helps companies to achieve and sustain improved financial performance through next-generation sourcing. FreeMarkets' solutions support the entire sourcing process, from spend visibility and supply base rationalization to competitive negotiations and savings implementation. FreeMarkets can be found on the Web at www.freemarkets.com

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' ability 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, and its other filings with the Securities and Exchange Commission.