Perfect Commerce Emerges as On-Demand SRM Market Leader; Adds 46 New Clients in 2004; 5 Year Revenue CAGR of 278%

Business Wire, March 7, 2005

KANSAS CITY, Mo. -- Perfect Commerce, Inc., the largest provider of On-Demand Supplier Relationship Management (SRM) solutions and The Open Supplier Network(SM) (The OSN(SM)), today announced the achievement of significant company milestones during 2004, establishing Perfect Commerce as the clear leader in On-Demand SRM solutions. During the past year, Perfect Commerce increased its client base by 46 customers and extended its existing relationships with 88 clients. The substantial growth in the company's customer base along with the 278% CAGR (Compound Annual Growth Rate) achieved during Perfect Commerce's first five years of operation clearly demonstrates the company's momentum and market leadership.

Perfect Commerce serves a wide variety of industries with a diverse customer base that includes 101 of the Fortune 500. Companies such as Honeywell, Yellow Roadway, Southern Company, Royal Caribbean Cruises, ITT Industries, First Energy, H&R Block and European banking giant BNP Paribas have selected Perfect Commerce for their SRM solutions and services.

"2004 was a breakout year for Perfect Commerce," said Sandy Kemper, chairman and CEO of Perfect Commerce. "The On-Demand market is experiencing tremendous growth and we have seen a great deal of traction for our complete offering of sourcing-to-settlement solutions. The validation of our business model has been especially gratifying."

Several factors are propelling Perfect Commerce's performance, including recognition by large enterprises of the business value of On-Demand solutions. According to Forrester Research the software-as-service On-Demand market is expected to grow 25% to 30% over the next three years. On-Demand delivery is now viewed as best-in-class for even the largest enterprises. In the February issue of Manufacturing Business Technology magazine, Sidney Hill Jr. stated: "Today, conventional wisdom says the budgetary pressure placed on IT executives is fueling growth of On-Demand software contracts. But I think something bigger is happening. The On-Demand model is definitely mainstream."

Perfect Commerce client, Paul Towne, vice president Global Sourcing, Honeywell Building Solutions said: "We were looking for a company that could provide a broad offering of solutions and complementary services to help us deliver bottom-line results. We needed a provider who offered more than point solutions and we needed a partner that could provide the flexibility and accelerated implementation of an On-Demand offering. Perfect Commerce delivered on all counts."

Leading industry analyst Aberdeen Research's most recent eProcurement Benchmark Report reaffirmed On-Demand's advantages, with enterprises using hosted delivery reporting 25% to 30% faster deployment times than those implementing applications on premises. "Enterprises using hosted offerings reported fewer full-time-employees (FTEs) dedicated to ongoing system maintenance," said Tim Minahan, vice president of The Aberdeen Group. "All these factors improve the accessibility and enhance the overall value and return on investment potential of eProcurement."

"We have seen tremendous growth since we started the company in 1999," said Kemper. "We will keep innovating and expanding in order to continue delivering on our promise to simplify commerce."

About Perfect Commerce, Inc.

Perfect Commerce is the largest provider of On-Demand Supplier Relationship Management (SRM) solutions and provides connectivity to trading partners via The Open Supplier Network(SM) (The OSN(SM)). The company is the leading On-Demand SRM solutions provider with more than 500 clients (101 in the Fortune 500), 165,000 users and 11,000 suppliers.

Perfect Commerce provides deep supplier-facing capabilities for the complete sourcing-to-settlement process. The company enables businesses to achieve sustainable supply management by simplifying the complex challenges of spend management, sourcing, contract management, services management, procurement, and electronic invoice presentment and payment. Perfect Commerce helps its clients succeed by delivering On-Demand SRM solutions that deliver bottom-line results.

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