AIAG Spins Off ANX Network; SAIC To Accelerate Development.

SOUTHFIELD, Mich.--(BUSINESS WIRE)--Dec. 7, 1999--

The Automotive Industry Action Group (AIAG) announced today that it has agreed to sell its Automotive Network eXchange(R) (ANX(R)) assets and operations to Science Applications International Corporation (SAIC).

"This is the next logical step in fulfilling the ANX vision," said Gary Quick, AIAG executive on loan. "AIAG shaped the vision, set the unique ANX standard for electronic communications service quality issues such as security, performance, reliability, and accountability, and then made the network operational. With the transition of responsibilities to SAIC, AIAG can now focus on setting the standards for evolving ANX-based applications and services as well as working with its counterpart organizations around the world to help globalize the network."

During the next several months, substantial improvements will be made in the ANX network to increase its service offerings. SAIC plans to add advanced network features and applications including videoconferencing, telephony and security, portal capabilities for communities of interest, and ASP-like (application service provider) services catering to engineering and back-office requirements.

"SAIC recognizes both the importance of the ANX network to the global automotive industry and its potential for adoption by other businesses and government sectors around the world," said Tracy Trent, SAIC senior vice president for e-business solutions. "SAIC has been involved with the ANX service since its inception through its association with ANX Overseer Telcordia Technologies, Inc. (formerly Bellcore). With overall responsibility for the ANX network, SAIC will add trading partners and certified service providers (CSPs) and provide for a seamless managed evolution of the ANX business."

Trent also said that SAIC soon will be announcing strategic alliances with technology providers that will add increased functionality to the ANX network.

The ANX network provides vehicle manufacturers and their suppliers with a secure and reliable global network infrastructure that replaces complex legacy networks and facilitates the re-engineering of the supply chain.

The ANX network, introduced by the industry in 1995 and in service for the past year, connects trading partners electronically allowing them to collaborate on product design and development; solicit and process orders; and facilitate just-in-time manufacturing and post shipping schedules.

Currently DaimlerChrysler Corp., Ford Motor Co., and General Motors Corp., and more than 250 trading partners are connected to the ANX network, with another 200 trading partners in the process of being connected.

Recently, purchasing executives from DaimlerChrysler, Ford and General Motors affirmed their unanimous support for the ANX network and agreed to sponsor ANX network presentations at their major supplier meetings. They also have signed a joint letter to suppliers not yet subscribed to the ANX network, encouraging them to join.

Recent e-commerce announcements by Ford and General Motors indicate that the ANX network is helping the automakers realize the vision of a full-service supply chain management solution.

"GM's partnership with Commerce One will be enhanced by the continuing innovations of the ANX network," said Doug Maulbetsch, general director, IS&S Business Services at General Motors. "The Commerce One initiative will be enabled by ANX's robust infrastructure and can leverage the services that ANX has to offer."

"Ford will continue to be one of the largest supporters of the ANX network," said Mark J. Duhaime, manager of purchasing systems of Ford. "We plan to utilize the technology ANX service provides as a primary path to support AutoXchange, our joint venture with Oracle."

"DaimlerChrysler recognizes the potential of the ANX to improve e-business solutions for the automotive industry," said P. Jeffrey Trimmer, director, operations and strategy, procurement and supply, of DaimlerChrysler. "We are committed to working with our trading partners to introduce applications and complementary ANX services to improve the way we do business."

Under the agreement, SAIC has purchased the ANX trademark, copyright and intellectual property and will manage the ANX network. The ANX governance structure will include broad participation from the AIAG, original equipment manufacturers (OEMs), suppliers, and other industry participants.

"This strengthening of the ANX service is a win-win situation for trading partners, CSPs, and the North American auto industry," said Doug Buchanan, business technology manager of Dofasco Inc., one of Canada's leading steel producers, and the first company signed up for the ANX network. "For trading partners, it provides opportunities for cost reduction, stronger innovative supply chain links, and a roadmap for business-driven communications enhancements. For CSPs, it supports market expansion and, as a result, the opportunity for increased business. For the integrated North American auto sector, it enhances seamless ANX connectivity between Canada and the United States now, and Mexico in the near term, and globally in the future."

Among the companies that helped drive the development of the ANX network were: DaimlerChrysler, Dana Corp., Dofasco Inc., Ford, General Motors, PACCAR, Robert Bosch Corp., TRW Inc. and Lear Corp. (UT Automotive).

Founded in 1982, the AIAG is a not-for-profit trade association of more than 1,600 automotive and truck manufacturers and their suppliers.

AIAG's purpose is to provide an open forum where members cooperate in developing and promoting solutions that enhance the prosperity of the automotive industry. Its focus is to continuously improve business processes and practices involving trading partners throughout the supply chain. More information about the AIAG and its initiatives can be found at www.aiag.org.

SAIC is the nation's largest employee-owned research and engineering company, providing information technology and systems integration products and services to government and commercial customers.

SAIC scientists and engineers work to solve complex technical problems in telecommunications, national security, health care, transportation, energy, the environment, and financial services. With annual revenues of $4.7 billion, SAIC and its subsidiaries, including Telcordia Technologies (formerly Bellcore), have more than 38,000 employees at offices in more than 150 cities worldwide.

More information about SAIC can be found on the Internet at www.saic.com. Information about the ANX network is available at www.anxo.com.