(WEBM) The EC Company Announces $30 Million Series C Round of Financing With Investments from American Express, CMGI @Ventures, and webMethods.

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--April 17, 2000

Strategic Investment Further Supports The EC Company's

Position and Product Offering in the Business to Business

Electronic Commerce Market

The EC Company, which offers a hosted Internet Transaction Exchange that provides a business to business e-commerce solution for mid-size suppliers, announced the completion of a $30 million Series C financing.

Investors include American Express (NYSE:AXP), a leading global travel, financial, and network services provider and the world's largest corporate card issuer, CMGI @Ventures, Inc., the venture capital affiliate of CMGI, Inc. (Nasdaq:CMGI), and webMethods, Inc. (Nasdaq:WEBM), the leading provider of software infrastructure for business to business integration (B2Bi). Also included in this round are private investments from several key executives at The EC Company.

The funds from this round will be used for continued corporate expansion and accelerated customer acquisition. By leveraging the investments from American Express, CMGI @Ventures, and webMethods, The EC Company will further its position as the leading provider of eTransaction processing for electronically enabling the small and mid-size businesses currently supplying digital marketplaces and traditional brick and mortar buying organizations.

"Our Series C round of financing and business relationships with American Express, CMGI @Ventures, and webMethods will establish The EC Company as the leading electronic enabler serving the small and mid-sized business market," said Andrew T. Duncan, president and CEO of The EC Company. "CMGI @Ventures, with its industry leading investments in B2B marketplaces and international presence, will be key in helping The EC Company expand its business not only in North America, but South America, Asia, and Europe. Our partnership with webMethods complements The EC Company's service offering with webMethods' industry-leading B2Bi solution, to allow both brick and mortar companies and digital marketplaces to quickly expand and electronically enable 100% of their supply chain."

"There is huge potential in online commerce for small and mid-size businesses, but the majority of these companies are not yet enabled to electronically send and receive business documents, such as purchase orders, shipping notices, and invoices," said Pierric Beckert, Senior Vice President of American Express Interactive Investments. "We are incredibly excited to help make the promise of B2B e-commerce a reality. We believe that The EC Company's unique capabilities will enable business customers to streamline their back-office processes and reap significant savings in time and money."

"As the leading business to business electronic commerce infrastructure provider for mid-market and small suppliers, The EC Company brings both valuable tools and a promising investment opportunity to the CMGI and CMGI @Ventures network," said Charles Finnie, General Partner with CMGI @Ventures. "We look forward to working with The EC Company as it leverages its leadership position and expands its reach to digital marketplaces." CMGI @Ventures' investment in The EC Company will be disbursed from the $1 billion CMGI @Ventures B2B Fund announced in November 1999.

"As opportunities in B2B continue to grow, it is important to make B2B initiatives accessible to companies of all sizes. webMethods B2B provides a comprehensive software infrastructure solution for the Global 2000 and their trading partners while The EC Company provides a unique set of services that address the B2B needs of small and mid-sized companies. Working together to deploy B2B trading networks, webMethods and The EC Company provide a joint solution to meet the requirements of customers and partners regardless of the size and application complexity of trading partners," said Phillip Merrick, president and CEO of webMethods, Inc. Andrew T. Duncan added, "webMethods is a very important technology and sales partner for The EC Company. By combining the technological and service offerings of both companies, traditional brick and mortar companies and digital marketplaces will now be able to seamlessly connect and move information to all partners within their supply chain."

Carl Lehmann, Vice President of Electronic Business Strategies at META Group stated, "Investments by American Express, CMGI @Ventures, and webMethods legitimizes The EC Company's eTransaction processing strategy to create a strong inter-enterprise exchange solution that links small and mid-sized companies with larger trading partners. Under pressure from larger supply chain initiatives, small to mid-size companies need simple and effective solutions to electronically link with partners and customers. The EC Company is wisely pursuing a target market that represents over 75% of U.S. businesses with enormous upside potential. This Series C investment coupled with recent partnership announcements and a growing customer base are indicative that The EC Company is making a name for itself as an inter-enterprise electronic business enabler."

About American Express Company

American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking. At www.americanexpress.com, consumers, small businesses and corporations can choose from a range of Internet products and services. American Express is making minority equity investments in emerging Internet companies, as well as building strategic alliances with these organizations by signing marketing and supplier agreements, obtaining exclusive offers for customers, or targeting investment dollars for marketing purposes.

About CMGI and CMGI @Ventures

With 70 companies, CMGI, Inc. (Nasdaq:CMGI) represents the largest, most diverse network of Internet businesses in the world, including both CMGI operating companies and synergistic investments made through its venture capital affiliate, CMGI @Ventures. CMGI leverages the technologies, content and market reach of its extended family of companies to foster rapid growth and industry leadership across its network and the larger Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI.

CMGI's majority-owned operating companies include Engage Technologies (Nasdaq:NGA), NaviSite (Nasdaq:NAVI), 1ClickBrands, 1stUp.com, Activate.net, AdForce, Adsmart, AltaVista, CMGion, CMGI Solutions, Equilibrium, Flycast, iCAST, MyWay.com, NaviPath, SalesLink, Tribal Voice and yesmail.com. CMGI @Ventures has ownership interests in 54 Internet companies, including Lycos, Inc. (Nasdaq:LCOS), Critical Path (Nasdaq:CPTH), Silknet (Nasdaq:SILK), MotherNature.com (Nasdaq:MTHR), Ventro (Nasdaq:VNTR) and Vicinity (Nasdaq:VCNT).

CMGI's corporate headquarters is at 100 Brickstone Square, Andover, MA 01810, Tel: [phone]. CMGI @Ventures has offices there as well as at 3000 Alpine Road, Menlo Park, CA 94028. For additional information and a complete listing of the CMGI and CMGI @Ventures companies, see http://www.cmgi.com and http://www.ventures.com.

About webMethods, Inc.

webMethods, Inc. (Nasdaq:WEBM) is the leading provider of software solutions for business to business integration (B2Bi). Leveraging the open standards of the Internet, the award-winning webMethods B2B(TM) family of products provides the B2Bi infrastructure that enables Global 2000 companies and B2B marketplaces to connect customers, suppliers and partners to form real-time B2B trading networks. webMethods B2B allows companies to create new revenue opportunities, strengthen relationships with customers and substantially reduce supply chain inefficiencies.

Founded in 1996, webMethods is based in Fairfax, Va., with offices across the U.S. and Europe. webMethods has more than 130 customers worldwide -- from Global 2000 leaders such as Dell, Eastman Chemical Company, Lucent and W.W. Grainger to major B2B marketplaces like ChemConnect, e-STEEL and Ventro. webMethods' strategic partners include Ariba, Commerce One, Deloitte Consulting, EDS, KPMG, Microsoft, Sterling Commerce and SAP AG. More information about the company can be found at www.webMethods.com.

About The EC Company

The EC Company offers a business to business Internet Transaction Exchange that provides e-commerce solutions for mid-size suppliers. The company's EC Exchange product and EC Exchange.net service enable trading relationships within and across communities. The combined offering is a hosted Internet-based electronic transaction exchange that manages and translates data standards seamlessly and effortlessly at a fraction of the cost of non-Internet based solutions.

The EC Company has a strategic business alliance with VerticalNet and has partnered with over 125 industry leading companies, including Ace Hardware, Distribution America, Do It Best, Fisher Scientific, Food Lion, Pacific Gas and Electric Company, and South Central Pool Corporation. The community of buyers available on The EC Company's EC Exchange network includes the previously mentioned partners, as well as TruServ, Safeway, Rite Aid, 3M, Costco, General Mills, Grainger, and others. In addition to American Express, CMGI @Ventures, and webMethods, The EC Company is backed by Acacia Research (Nasdaq:ACRI) and several venture firms, including Talkot Capital, Wasserstein Adelson Ventures, and Invemed Associates. For more information, The EC Company can be contacted at 650/323-7500 or www.eccompany.com.