B2B SOLUTIONS: TODAY'S TOOLS FOR TOMORROW'S ECONOMY.

Many brick-and-mortar and e-commerce companies throughout Latin America are seeing good times. Stronger national economies, increased international trade, a rapidly expanding telecommunications infrastructure and continued privatization of state-owned enterprises are among the positive indicators for continued growth.

At the same time, international companies in Latin America are increasingly faced with regional and global competition, making it necessary for businesses to defend their current markets and to reach out to new customers who may be geographically separated from their current base.

Fortunately, many new business-to-business (B2B) solutions are becoming available in Latin America and the Caribbean, giving the region's businesses the tools they need to flourish in today's international marketplace. A sampling of these tools: Online security suites, videoconferencing, enhanced customer relationship management (CRM) software, and performance management solutions.

One of the strongest indicators of continued growth is a sharp increase in computer shipments. According to Dataquest Inc., a unit of the Gartner Group, the Latin American personal computer industry was the fastest-growing region in the global PC market in the third quarter 2000. Latin American PC shipments were nearly 1.9 million units, up 47% from the same period in 1999.

"Improving economic conditions in the region's leading economies, especially in Brazil, are behind this robust result," said Luis Anavitarte, director for Latin American research. "In addition, growth is being boosted by creative PC marketing strategies by vendors and distributors, as well as a growing recognition that IT is a key tool for facilitating economic development."

Another fundamental for business growth: Advanced telecommunications networks with broadband and Internet capabilities. Global telecom companies like Lucent are laying fiber optic cables, building switches and erecting wireless facilities that help bring businesses closer to their customers.

Latin America is increasingly becoming a "wired" community. U.S.-based International Data Corp. (IDO) estimates that the number of Internet users in the region will grow from 7.5 million in 1999 to 19 million by 2003. E-commerce sales are expected to soar to $8 billion by the same year.

B2B transactions are expected to be an evermore driving force in the e-commerce market. In fact, a November report from the Gartner Group, a Connecticut-based consulting firm, points to the rapid development of e-marketplaces that cater to the B2B market.

"The developers and managers of B2B marketplaces, called e-market makers, have begun to attract large numbers of buyers and have begun to use the buyers' market power to attract sellers," said the report, which forecast that more than 500,000 companies will be participating in e-marketplaces as buyers and/or sellers by 2005. "The long-term effects of these new entrants in markets are yet unproven, but it is expected that benefits from their presence will far outweigh the costs."

While enhancing efficiency, quickening response times and boosting revenues will remain key factors driving the B2B marketplace, one of the most important elements is expected to be customer service.

Enterprises in Latin America and elsewhere consider customer service as their most important functional area and also list it as their highest-priority use of the Internet, says a November 2000 report from Gartner. Key goals of CRM programs, according to the report, include:

* Increase revenue.

* Increase profitability.

* Increase customer loyalty.

* Gain a competitive edge.

* Decrease costs.

* Gain access to new channels.

"There is no clear-cut, defined business rationale that enterprises should use," said the report. "However, the mention of increased customer loyalty among the top drivers indicates that financial metrics are no longer the most important criteria for these types of decisions."

Here are some companies that are leading the way:

PRECISE SOFTWARE SOLUTIONS

Precise Software Solutions offers end-to-end performance management solutions for Latin American companies using Oracle-based platforms. "We can identify the exact cause of performance problems in custom-built and ERP applications, e-business web applications, data warehousing environments and networks," says Alex Logan, director of Latin America.

Precise has more than 700 customers worldwide, including the U.S. Federal Reserve. Amazon.com recently chose Precise to assist in the optimization of the performance of its customer order and inventory e-commerce database environment. In Latin America, clients include BellSouth, Banco ltau, Americanas.com, Lokau.Com and other institutions that rely on Oracle databases and associated applications.

Precise has a dedicated Latin American department with sales and support available throughout the region. The company meets its customers' needs for access to mission-critical information by integrating with leading enterprise providers, including SAP, Oracle, EMC, Cisco, SUN, Hewlett-Packard, Computer Associates and others.

"We do sub-second sampling in Oracle environments without overhead. So we can function 24 hours a day, seven days a week," says Logan. "We correlate information between the application, database, operating system and physical storage. We also maintain a performance warehouse that lets companies look back at what may be causing bottlenecks, simulate impacts of planned changes and do projections of their future resource needs."

Insight is another Precise solution that measures real end-user response time of any multi-tiered application and segments the response time by functional web or enterprise component. Insight quickly reveals the source of application performance degradation, maximizes service level compliance, and minimizes crisis resolution time. For more information about Precise Software Solutions (NASDAQ: PRSE), visit www.precise.com.

POLYCOM

Polycom's advanced videoconferencing solutions provide a convenient, cost-effective way for Latin American business executives and professionals to stay in touch. "Our high-speed communications solutions provide users with true advantages when it comes to doing business," says Glenn Adamo, vice president for Latin America and the Caribbean. "Executives making long trips can benefit from more efficient communications to accelerate decision-making processes and to keep associates informed while reducing travel costs."

Polycom recently introduced ViaVideo[TM], a sophisticated desktop video communications appliance. ViaVideo transmits full-screen, full-motion images with crystal-clear voice quality and is the first product of its kind to offer affordable, two-way, high-quality video-over-Internet Protocol (IP) networks. Small enough to fit into a shirt pocket, the portable ViaVideo unit plugs into a desktop PC or laptop computer and requires only a simple software installation after plug-in.

"While the Internet revolution has made the workplace more efficient, we risk losing much of the face-to-face, real-time communication that really builds partnerships and strengthens the interpersonal part of doing business," said Bob Hagerty, CEO. "In today's fast-paced business world, organizations are looking for ways to save time and money on business travel and to supplement their reliance on e-mail messages. With ViaVideo, business goes back to its roots -- leveraging the power of face-to-face communications while saving money and time."

Polycom is also a leader in videoconferencing with its ViewStation family of products -- all of which combine exceptional performance with high-quality images, reliability and ease of use. The ViewStation series is designed to meet the needs of small and mid-size businesses, as well as large-scale, multinational enterprises.

Headquartered in San Jose, California, Polycom maintains regional offices throughout the US, Europe, Asia and Latin America, employing, more than 350 people worldwide. For more information, please visit www.polycom.com.

NETWORK ASSOCIATES

Security is a fundamental element in the growth of the Internet in Latin America, according to Herbert A. Molina, vice president and general manager of Latin America and the Caribbean for Network Associates Inc. (NAI).

"We e-business transaction expected to reach US$1 billion this year, any application where key data is transferred need to be secure," he says. "Threats from aggressive hackers and new computer viruses must be countered swiftly, using the best possible security technology."

Network Associates delivers security solutions to Latin American businesses with four suites of integrated products:

* Total Virus Defense, which provides protection at all points of entry. Info Exame, Brazil's leading computer publication, rated NAI's suite the best in virus detection, identifying 100% of infected programs.

* Total Network Security, which includes encryption, authentication, intrusion protection and firewall technologies. Recently, one of the most influential IT publications in the U.S. cited NAI's Gauntlet 5.5 Adaptive/Proxy as the best firewall in the market.

* Total Network Visibility, using the highly regarded industry-standard Sniffer for protocol/system analyzers.

* Total Service Desk, a fully integrated web browser help desk solution for Windows NT and SQL-based systems. This is the worldwide leading help desk solution with the largest installed base of users on the Windows NT platform.

Through its affiliate, McAfee.com, Network Associates offers leading-edge security and value-added solutions to smaller businesses and individuals. McAfee.com is the technological response from NAI to the growing ASP/ISP market demands.

Recently, Network Associates introduced the revolutionary PGP 7.0, an encryption solution for the retail market based on the industry standard and award-winning PGP encryption technology that contains 128-bit security and a personal firewall to protect individual computers from hackers.

For more information about Network Associates, visit www.nai.com.

HEWLETT-PACKARD

Hewlett-Packard (HP) offers B2B solutions for virtually every business segment in Latin America. HP's portfolio includes e-services that help companies build profitable Internet operations, the equipment needed to take advantage of the network, and its 'always on' infrastructure that allows businesses to observe and monitor their systems. We call this three-way approach the 'intersection' for B2B solutions," says Fabian Figueroa, Latin American marketing director.

HP has particular expertise in developing vertical computing and imaging solutions in the financial, manufacturing, and network/service provider industry, assisting organizations in serving their customers. As a global leader in the B2B market, HP offers horizontal solutions like CRM tools to Latin businesses. "We are aggressively providing customer-centric solutions to small and medium businesses as well," Figueroa says, "including IT solutions based on the Internet that avoid the cost of an in-house infrastructure."

HP has a direct presence in nine countries in Latin America and the Caribbean with a regional headquarters in Miami. Including three manufacturing facilities, HP has almost 3,000 employees in the region. HP also works closely with a wide network of partners like SAP who deliver additional capabilities to organizations. For more information, visit www.hp.com.

VIEWSONIC

ViewSonic's new 15-inch LCD color monitor offers one of the brightest images of a 15-inch flat panel display on the market in Latin America. With its thin profile, the VG 150 is the ideal solution for professionals whose work space is limited, yet where weight and power conservation are important considerations. The VG 150 (pictured; it also comes in a black version) weighs just 11 pounds and is both a desktop display and VESA wall mount compatible, making it perfect for financial, government, corporate and medical use. It is PC and Mac-compatible and carries a three-year limited warranty. Active matrix color technology provides sharper images, and screen adjustments can be made via an onscreen menu using simple controls.

ViewSonic's Viewmatch[R] system allows the user to adjust color temperature and individual color intensity for screen-to-print matching. Another important feature is the anti-static, antiglare screen, which refracts unwanted light away from the user while maintaining the highest quality of the displayed image. The VG15O also fully supports the Windows [R] auto-installation standard for "plug and play" easy, trouble-free configuration and setup.

The VG15O, which consumes less energy than a 60-watt lightbulb, complies with the world's strictest standards for by radiation, safety, ergonomics, recycling and power management while saving costs through automatic power saving modes. ViewSonic, based in Walnut, California, is one of the world's leading monitor companies with an extensive sales and support network in Latin America. For more information, visit www.viewsonic.com.

EMERGIA

Emergia is taking a giant step toward building the new information society in Latin America. A broadband services provider with direct presence throughout Latin America and in the Untied States, Emergia offers city-to-city connections at the speed of light in an open network scheme.

"The demand for communications capacity between Latin America and the United States is growing rapidly, and the current broadband capacity cannot accommodate this surge in demand," says Eduardo Caride, CEO of Emergia. "Emergia's network will revolutionize the expansion and economic development of the region by providing a practically inexhaustible transmission capacity."

Emergia is building a 25,000-kilometer high-capacity, fiber optic ring that will serve as a global communications infrastructure in the Americas. When complete, Emergia's network will connect 12 cable landing stations in Argentina, Brazil, Chile, Guatemala, Peru, Puerto Rico and the United States. In November, Emergia completed the portion of the network between Sao Paulo and Rio de Janeiro, and the portion between Buenos Aires and Santiago; the first portion connected Buenos Aires and Sao Paulo. All of these sections are now in service.

Emergia Holding N.V., a subsidiary of Telefonica S.A., is headquartered in Montevideo, Uruguay, with offices in Argentina, Brazil, Chile, Peru, Guatemala, Puerto Rico and the United States. For more information, visit www.e-mergia.com.

Diesco Ltd.: Packaging solutions for industry

To better serve their customers, several leading companies in the industrial packaging business have joined together under a new corporate umbrella that will allow them to function as a one-stop packaging solution. Diesco Ltd., based in the Dominican Republic, aggregates five companies into one cohesive business group.

"Diesco is a B2B enterprise where we can go to a water company or a beermaker and provide them with all their packaging solutions," says Manuel V. Diez II, president and CEO of the new corporate entity, which anticipates US$50 million in revenues this year and aims to double in size in the next five years. "We can sell the bottles, the tray, the film to wrap it in, and so forth."

The companies were founded by Diez's father over the past few decades or were more recently acquired. Today, they sell their products in 25 countries in northern South America, Central America and the Caribbean, and have been growing at a rate of 25% a year for the past three years.

The Diesco companies are:

Polyplas Dominicana, the largest manufacturer of plastic bottles and caps in the region, produces packaging for leading brands in food and beverages, house cleaning products and lubricants/fuel. It also has a strategic alliance for manufacturing, selling and distributing water bottles with U.S.-based Reid Plastics Inc., the biggest manufacturer of returnable water containers in the world.

Polyplas International, located in Puerto Rico, distributes and sells the plastic packaging products manufactured by Polyplas Dominicana.

Termopac Industrial, based in the Dominican Republic, which is at the forefront in innovation in packaging technology for paper, aluminum and plastic derivatives. Its brands are leaders in their market segments, and its products are exported to more than 20 nations.

Moldeo Industrial, one of the group's most recent acquisitions, serves the consumer market as Termopac Industrial. Its main brand is Moldy, known throughout the Caribbean for resistance, durability and high quality. Diesco is moving toward the merger of Moldeo and Termopac Industrial to capitalize on synergies in product lines, manufacturing technology and distribution channels.

Cristalia, the newest addition to the group, is the largest water bottler in Puerto Rico.

Diesco, so named because it calls to mind the "Diez companies," is embarking on an ambitious expansion plan that includes strategic acquisitions.

"We are centrally located like a bridge between Central and South America and the United States," says Diez, who has an MBA from Northwestern University's Kellogg School and was educated at Williams College in Massachusetts. "If you look at a map, it makes total sense."

Lucent Technologies: Investing in Latin America's Future

Lucent Technologies is helping to build advanced telecommunications systems that are essential to the future of the Caribbean and Latin America. With a growing product portfolio that includes wireless and broadband systems,- as well as data networking, optical networking, communications software and professional services - Lucent is a powerful force throughout this fast-growing market. Led by a truly multi-local team of experienced management and technology professionals, Lucent is rapidly expanding its customer base in the region. In the past 12 months, Lucent has announced more than 20 major contracts valued at over US$2 billion, including wireless contracts with Vesper, Telefonica, Telecom Italia Mobile and Portugal Telecom in Brazil; lusacell in Mexico; Telcel in Venezuela; Centennial in the Dominican Republic and Jamaica, and Telefonica in El Salvador, Guatemala and Puerto Rico.

Lucent is also expanding its wireline business with Telemar and Tele Centro Sul (now Brasil Telecom) in Brazil. For example, Lucent is supplying Telemar with a wide range of next-generation switching and access solutions as well as in wireless local loop systems. Lucent has also experienced significant growth in data networking and communications software with Embratel in Brazil and other key players in the region, such as Axtel and Avantel in Mexico.

As a leader in advanced technology, Lucent recently signed an agreement to provide optical networking systems for Eletronet, which supplies bandwidth for communications companies in Brazil. With Lucent's systems, Eletronet's network will be able to transmit approximately 80 million one-page e-mail messages per second. "This is one of the largest contracts for optical equipment in Latin America, and we are very proud to have been selected by Eletronet to be its technology partner in such an advanced project," says Renato Furtado, CEO of Lucent Brazil. "This contract reinforces Lucent's position as one of the global leaders in optical networking systems."

In the Caribbean, Lucent will build a digital CDMA wireless network for Centennial Digital Jamaica, Ltd. The initial phase of the project will cover Kingston and will quickly expand to Ocho Rios, Montego Bay and the rest of Jamaica. Lucent is also supplying digital wireless equipment for Centennial Communications Corp. in the Dominican Republic that is compatible with Centennial's system in Puerto Rico.

In Argentina, Lucent recently signed a three-year contract with Compania de Radiocomunicaciones Moviles (CRM), a subsidiary of BellSouth International to build a CDMA wireless network in the interior. In addition, Multicanal, the leading cable television provider in Argentina, selected Lucent to install its state-of-the-art All Wave Fiber in an urban ring in Buenos Aires. The contract includes 600 kilometers of optical fiber.

To bring support closer to its wireless customers, Lucent inaugurated a state-of-the-art wireless network equipment laboratory in Buenos Aires. The "proof of concept" lab will allow for the testing of equipment and customized software applications prior to installation in a customer's site.

Lucent is now developing its OnDemand wireless broad-band system for Techtel Argentina. The technology, also known as local multipoint distribution systems (LMDS), allows carriers to offer wireless Internet and multimedia services. Lucent's is the first LMDS system installed in the region.

GTE will be using Lucent equipment to build a wireless Personal Communications Services (PCS) network based on Code Division Multiple Access (CDMA) technology. "Lucent is the leader in development and deployment of CDMA technology," said Fares Salloum, GTE senior vice president -- international operations. "We are pleased to have the benefit of Lucent's extensive experience as we expand our services to all of Argentina."

Lucent strives to build long-term partnerships with its customers, and takes pride in developing solutions that will make those businesses prosper.

Lucent has six manufacturing facilities in the region: a power systems and microelectronics plant in Matamoros, Mexico; a cable and equipment plant in Caracas, Venezuela; a wireless equipment plant and a fiber optic cable plant in Campinas, Brazil; and switching manufacturing in Belo Honzonte and Valinhos, also in Brazil. In November, Lucent-owned Optical Fiber Solutions (OFS) opened its first optical fiber cable manufacturing facility in Latin America. Located in Campinas, Sao Paulo, the US$50 million facility will serve the region's growing demand for optical fiber cable.

Lucent Technologies, headquartered in Murray Hill, N.J., has more than 7,000 employees in the Caribbean and Latin America. Lucent has offices in 15 countries and a presence in the rest of the region through distributors, sales, service, repair and warehousing facilities.

For the past several years, Latin America has been one of the fastest-growing telecommunications markets in the world, growing at around 20% each year. Lucent has made a long-term commitment to providing world-class communications systems and technology to both developed and developing countries.

Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as broadband and mobile Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services.