Arzoon Acquires From2; Creates Leading Seamless Trade Compliance and Logistics Software Solution.

Business Editors/High-Tech Writers

SAN MATEO, Calif.--(BUSINESS WIRE)--March 20, 2001

Arzoon, an innovative developer of enterprise-class supply chain software, today announced that it has acquired From2, a leading provider of Web-native trade compliance content and automation solutions. The addition of From2's International Trade Logistics (ITL) expertise, content and software to Arzoon's suite of Web-native supply-chain management tools creates one of the most comprehensive solutions for achieving control, collaboration and visibility to the flow of goods worldwide. Terms of the acquisition were not disclosed.

"Integrating procurement, inventory management and transportation with trade management into one seamless solution is Arzoon's strategic advantage and a must for our Global 2000 clients," said Arzoon CEO Farid Dibachi. "From2's tools, bolstered by the content necessary for Trade Compliance and Web-native methodology, set them apart from the competition. They bring to Arzoon the culmination of over 10 years of content aggregation and a broad network of global affiliates in over 75 countries."

"The combined functionality of our product suite creates solutions that empower companies to conduct business with precision," said From2 CEO Leon Falic. "From2's content is a perfect fit with Arzoon's workflow technology. Additionally, our trade compliance team is an invaluable resource to those on the front line of international trade."

The complexity of ITL causes severe pain to business. Missteps are common and expensive. Arzoon's and From2's capability brings clarity to the confusing and often costly process of moving goods across borders. In addition to content, processes and software, From2 brings a dedicated trade compliance team consisting of recognized technical experts, many of whom have formerly worked for the US Customs Service and the US Department of Commerce. Said Sam Banks, former acting commissioner of US Customs and From2's chief customs officer, "There is no customary practice when it comes to the Customs practice among nations. Our ability to handle trade compliance and customs clearance to ensure legal, hassle-free and expeditious international deliveries is what sets us apart from the competition. Arzoon perfectly complements our respective product offerings. Together we bring to market a unique capability to unify international trade and logistics processes into one seamless solution."

Arzoon's clients, with operations, suppliers and customers located around the globe, demand the seamless integration of ITL functionality with Arzoon's product offerings. As a result of the Web-native design of Arzoon's product, clients' procurement, sales or logistics professionals are empowered to work collaboratively with their global customers, suppliers, customs brokers and freight forwarders on a single Arzoon-based platform.

Specific benefits of this acquisition to Arzoon's clients include:

-- Web-native trade compliance functionality integrated with Arzoon's
Transportation Management Trading Network(TM) (TMTN) solution to provide:
end-to-end trade compliance screening, document determination and generation,
real-time landed cost calculation and a comprehensive product catalog for
storing product data and assisting in trade compliance management

-- Comprehensive content coverage with trade specialists in 75 countries
(representing over 90% of global trade) constantly provides updated trade
regulations and policy information

-- Resident world-class trade compliance expertise that can assist companies in
reviewing trade processes and issues

-- Trade compliance functionality either as an independent module or as part of
an integrated workflow in Arzoon's TMTN solution

"Initially we tried partnering with traditional providers of automated trade compliance technology," said Kip Hawley, Arzoon executive vice president of Corporate Development. "However, due to ITL's complex and dynamic nature, we soon learned the vital importance of being in control of the content. There are elements of any business where you can afford to partner, but there are some aspects that you must own." This compelled Arzoon to look for more modern, Web-native solutions. Following a thorough search, From2's solution emerged as the only one in the marketplace that had been developed from the ground up for use on the Web. The talent of the people, the expertise of the trade management services group and the Web-native technology of From2 offered significant competitive advantage for Arzoon and its clients.

Arzoon, Inc. (www.arzoon.com), headquartered in San Mateo, Calif., enables the transformation of worldwide logistics into a "networked community." Through its Web-native Transportation Management Trading Network(TM) (TMTN) system, Arzoon's standardized processes and XML-based messaging create a language of global commerce that connects all trading partners involved in the movement of product. Arzoon's version 3.0 is being offered as a stand-alone version installed on the client's hardware system or is available as a service hosted by Arzoon's Network Operating Center (NOC).

From2, Inc. (www.from2.com) provides global trade software and consulting solutions that empower companies to conduct business worldwide. These solutions enable sellers and buyers to make informed global sourcing and purchasing decisions by simplifying and automating international trade and the cross border movement of goods. Incorporated in January 1999, From2 is a privately held company with offices in Miami, Fla., and Washington D.C. and over 40 employees.

Note to Editors: Arzoon, the Arzoon logo and Transportation Management Trading Network are trademarks, and in some jurisdictions may be registered trademarks, of Arzoon.