Adaptec Integrates Supply Chain With CrossRoute's Alliance Software; Adaptec Connects its SAP R/3 System to Cross-Enterprise Electronic Commerce Solution.

ORLANDO, Fla.--(BUSINESS WIRE)--Aug. 25, 1997--CrossRoute Software Inc., a developer of cross-enterprise electronic commerce applications, announced the successful completion of its first pilot implementation.

Adaptec Inc., a $1 billion provider of bandwidth management technologies, has implemented CrossRoute Alliance to automate business processes with its supply chain partners in Asia. Through a combination of Alliance and SAP R/3, Adaptec is making significant strides towards its goal of reducing manufacturing cycle times by 50% by the year 2000.

"We view Alliance's electronic commerce abilities as the enabler to the business process changes Adaptec will make," commented Dolores Marciel, Vice President of Corporate Procurement at Adaptec. "Having a system like Alliance, which allows me to seamlessly integrate processes between my suppliers and Adaptec, speeds up cycle times significantly, immediately!"

Adaptec Drives to Reduce Cycle Times

Last year Adaptec manufactured and sold $700 million of hardware and software to connect computers with peripherals and networks. The company uses overseas partners to fabricate and assemble their products. This "virtual factory" gives Adaptec a significant cost advantage in addition to manufacturing flexibility.

In a quest to maintain industry leadership, Adaptec has embarked on its A2000 Project, aimed at reducing manufacturing cycle times by half by the year 2000. Partners play an important role in efforts to meet the A2000 goal, making real-time integration with these suppliers critical.

Alliance Streamlines the Supply Chain

Before implementing Alliance, chip designs were distributed to suppliers manually via fax. Lot number and purchase order information was entered and re-entered manually, leaving room for errors. The need for automation was obvious. "If you're sending a fax of a design and it's not clear, or if there's any sort of question at a fabrication facility, you're taken out of the production queue until that problem is resolved. You then have to wait until the fab's next start cycle, which negatively impacts your own cycle time."

Today, Adaptec has integrated Alliance with its new SAP R/3 system. With Alliance in place, Adaptec is automating design, purchasing and manufacturing processes with fabrication partners in Japan and Taiwan, and an assembly partner in Hong Kong. They are exchanging chip designs, purchase orders, acknowledgments, work-in-progress information and other documents over secure Internet connections.

Integration with SAP R/3

CrossRoute Alliance integrates tightly with existing enterprise systems, such as SAP R/3. "Alliance is extremely easy to deploy because it offers true application integration," says Steve Robinson, Electronic Commerce Manager at Adaptec.

"One of the things that impressed me most about Alliance," he continues, "is its ability to seamlessly integrate with our SAP application as well as our Internet and intranet strategies. Alliance can interact with any enterprise system, which puts them head and shoulders above anything else available today."

Realizing Results

Adaptec has already realized efficiencies with its new Alliance solution, cutting their manufacturing cycle times. Alliance and SAP are a powerful combination that is producing clear efficiencies. Adaptec is well on its way to achieving its A2000 goals.

"Our new electronic commerce solution lets us send information electronically. There are three clear benefits to that: it improves accuracy, it improves efficiency and it improves cycle times," said Marciel. "Those are the results we wanted with Alliance. It's brilliant!"

About CrossRoute Alliance

CrossRoute Alliance is cross-enterprise electronic commerce software that allows companies to forge tight connections with their customers, distributors and suppliers. It securely connects an organization's enterprise systems to those of their business partners over the Internet or extranet. Alliance provides all of the capabilities needed to automate sophisticated cross-enterprise processes, including supply chain integration, inventory replenishment, distributor ordering, and logistics coordination. This seamless enterprise-to-enterprise communication results in reduced lead times and inventories, and increased productivity.

About CrossRoute Software Inc.

Founded in 1996, CrossRoute Software Inc.'s objective is to be a premier provider of cross-enterprise electronic commerce applications. Its flagship product, CrossRoute Alliance, is targeted at large domestic and global organizations looking to connect their enterprise systems with those of their mission-critical business partners. Kenneth Ross, President and CEO, was formerly the founder and CEO of Ross Systems and the CEO of Documentum and Pillar Corporations.

CrossRoute relies on an Advisory Council comprised of large-scale manufacturing and distribution organizations for product validation and market insight. The company is funded by several leading venture capital firms including The B.J. Cassin Group, Bay Partners, Piper Jaffray Ventures, Telos Venture Partners and Ziff Brothers. CrossRoute is located in Redwood Shores, Calif. For additional information about the company and its revolutionary offering, visit their website at http://www.crossroute.com or contact them directly at 650/596-1300. -0-

Note to Editors: CrossRoute Software and CrossRoute Alliance are trademarks of CrossRoute Software Inc. All other names are trademarks of their respective companies.

CONTACT: CrossRoute Software

Kim Weins, 650/596-4511

[e-mail]

or

Marilyn Callaghan

Marilyn Callaghan, 650/342-6087

[e-mail]