Advanced Data Exchange and Newark Electronics Launch Internet EDI Supplier Initiative -- Project Saves Over $1.2 Million in First Year Alone.

Business Editors/High-Tech Writers

NEWARK, Calif. & CHICAGO--(BUSINESS WIRE)--Aug. 23, 2001

Solution Pays for Itself in Less Than 1 Month

ADX -- Advanced Data Exchange today announced dramatic results in a case study on Internet EDI with Newark Electronics(R), a wholly owned subsidiary of U.K.-based Premier Farnell, and one of North America's leading distributors of electronic components. The study outlines how ADX has implemented a supplier Electronic Data Interchange (EDI) project that saves Newark Electronics over $1.2 million annually in direct cost savings and improved internal efficiencies.

The case study, conducted by Wellington Consultants, a San Francisco-based business consulting group, shows that ADX helped Newark Electronics nearly triple its EDI connections to suppliers within a matter of months, leading to large savings and improved efficiencies. Newark boosted its rate of purchase order acknowledgements from 33% to over 94%, reduced sales force order expediting, and slashed manual order processing and reconciliation costs. The result was an annual cost savings exceeding $1.2 million and a three year ROI of 4,428%.

"The results of this project have exceeded our expectations," said Tom Walkowiak, VP, Operations, Newark. "In today's challenging business environment, achieving greater internal efficiencies is very important. These are savings that go directly to the bottom line."

The project caps a multi-year effort by Newark Electronics to eliminate manual processes and paper-based transactions. The company had established EDI connections with many of its large suppliers to exchange business transaction documents -- such as purchase orders and invoices. By mid-2000, the company had EDI connections with only 75 of its 300 key suppliers. Most suppliers continued to transact business with phone and fax -- cumbersome and costly manual, paper-based processes -- to exchange critical business transaction documents.

"We used to deal with huge stacks of paper coming from different locations via fax and mail from our suppliers," said Peter Ruddy, Newark Supply Chain Manager. "We were hard-pressed to keep up with the paper-based POs and PO acknowledgements. Manual orders and lost POs can lead to expensive order expedites and lost sales as frustrated customers go elsewhere."

Today, Newark Electronics has leveraged its EDI investment with links to over 235 of its 300 trading partners. ADX provides mid-sized and small enterprises an outsourced, affordable, and easy-to-implement system to connect with their larger trading partners. On average, each of Newark's suppliers pays less than $100 per month to exchange critical business transactions via the ADX network.

"ADX is pleased to deliver a timely and important solution to Newark Electronics," said Andy Duncan, CEO of ADX. "Large enterprises like Newark Electronics know the benefits of connecting electronically to their mid-size and small suppliers, but they also know that getting this done is difficult. Outsourcing the job, like Newark did, is the smart solution."

"ADX has been an overwhelming success," according to Jack Rumpf, Newark's director of Customer Service. The company plans to rely even more on ADX as it incorporates electronic invoicing, advanced shipping notices (ASNs) and other electronic transaction functions to exchange inventory forecasts, sales projections, and product planning documents.

About Newark Electronics

Newark Electronics is one of North America's largest distributors of electronic components, test instruments, tools and wire, stocking over 150,000 products from 300 leading manufacturers. Newark supplies everything from the basics to the newest innovations through its 48 branch offices, catalog, CD-ROM, and Web site. Newark's U.K. parent company, Premier Farnell plc (LSE:PFL)(NYSE:PFP) is a global distributor of electronic components and industrial products servicing more than 100 countries and over 1.2 million customers. For more information, call Newark at 1-800-4-NEWARK (800/463-9275) or visit www.newark.com.

About ADX -- Advanced Data Exchange

Advanced Data Exchange provides an easy, outsourced Internet EDI/XML service that enables subscriber companies to exchange business documents such as purchase orders, advanced shipping notices and invoices, electronically with all of their customers and suppliers at a fraction of the cost of non-Internet based solutions. The data can be integrated with most popular business accounting, ERP and bar code systems.

ADX has strategic business alliances with American Express, webMethods, Oracle, Ariba, and the National Association of Wholesaler-Distributors (NAW), among others. It has relationships with more than 200 of America's leading enterprises. The large enterprises available on the ADX network include 3M, Ace Hardware, Costco, General Mills, Fisher Scientific, Food Lion, Home Depot, Newark Electronics, Pacific Gas and Electric Company, Rite Aid, TruServ and many others. ADX is a privately held corporation with investments from American Express (NYSE:AXP), CMGI @Ventures (Nasdaq:CMGI), webMethods (Nasdaq:WEBM), Acacia Research (Nasdaq:ACRI), Talkot Capital, Wasserstein Adelson Ventures, Invemed Associates, and iCentennial Ventures, among others. For more information, ADX can be contacted at 510/493-5000 or www.adx.com.