BCE Emergis And Descartes Form Strategic Alliance To Offer High Performance E-Commerce Solutions.

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WATERLOO, Ontario--(BUSINESS WIRE)--Dec. 21, 2000

Alliance Offers Complete E-Commerce Cycle Solutions, Extends The

Descartes Global Logistics Network To New Shippers And Carriers

The Descartes Systems Group Inc. (NASDAQ:DSGX) (TSE:DSG), a leading provider of global Internet logistics solutions, and BCE Emergis, one of the top electronic commerce service providers in North America and a member of the BCE family, a global telecommunications leader, announced today a strategic alliance to offer high performance Internet logistics solutions. The multi-faceted strategic alliance agreement involves a joint sales and marketing alliance and Descartes' acquisition of BCE Emergis' transportation logistics messaging services, significantly expanding the Descartes Global Logistics Network with new Air Cargo handling capabilities and new Air Carrier and Freight Forwarder relationships.

Under the joint sales and marketing agreement, BCE Emergis will sell Descartes' DeliveryNet solutions as part of its broad offering of e-commerce services to major enterprises in North America, including its existing customer base, with an immediate focus on the Health Care and Financial Services verticals. Descartes will offer BCE Emergis' EIPP solution as part of its DeliveryNet solution offering.

As part of Descartes' acquisition of BCE Emergis' transportation logistics messaging services, the BCE Emergis Global Carrier Network will become part of the Descartes Global Logistics Network, adding to the Descartes Network over 30 Air Carriers, 200 Land Carriers, 20 Ocean Carriers, 50 Shippers/Distributors, 200 Freight Forwarders and 2,000 Customs Brokerage Offices. Approximately 80% of the North American Air Cargo messaging and 50% of the worldwide Air Cargo messaging will be processed through the Descartes Global Logistics Network following the Network connection.

"The Descartes Global Logistics Network has just jumped in size with the addition of the BCE Emergis transportation logistics messaging services and Global Carrier Network, strengthening the reach of the Descartes Network across all modes of transportation," said Peter Schwartz, Chairman and CEO at Descartes. "For shippers on the Descartes Network, the strategic alliance means greater access to more carriers to meet time and cost constraints. For carriers on the Descartes Network, the strategic alliance creates opportunities to identify new revenue and cost-saving opportunities through collaborative logistics practices. Descartes welcomes the many new shippers and carriers to Descartes' global logistics community and looks forward to seeing new relationships emerge in the months ahead."

"This is an important agreement for both companies. Each company gains increased focus on their core activities and each has an enhanced service offering for their customer bases," said Brian Edwards, Vice Chairman and CEO of BCE Emergis. "In particular, BCE Emergis gains a strong addition to its service offering, and the logistics messaging service customers will benefit from the depth and expertise of Descartes, the world leader in Internet-based logistics and fulfillment solutions. Both companies will benefit from this partnership and from each others' business relationships."

Under the terms of the strategic alliance agreement, Descartes will acquire certain BCE Emergis' Canadian assets and the U.S. and Swiss companies dedicated to its transportation logistics messaging services in exchange for 1.388 million common shares of Descartes and CDN$25 million. At Descartes closing price on Wednesday, December 20, 2000, the transaction would be valued at approximately CDN$73 million or US$48 million. Descartes expects to be operating profit neutral with this investment until the end of the second quarter Fiscal Year 2002, and to yield positive fiscal results thereafter.

Participants of the BCE Emergis Global Carrier Network include American Airlines, British Airways Air Cargo, Canadian Air Cargo, Delta Airlines, Federal Express, Northwest Airlines Cargo, Swiss Air Swisscargo, United Airlines Worldwide Cargo and Variglog. Under the BCE Emergis-Descartes strategic alliance agreement, these organizations join the Descartes Global Logistics Network via the BCE Emergis Air Cargo network.

BCE Emergis joins a growing list of telecommunications companies worldwide, including Sprint and Telefonica, that are enabling more efficient logistics services delivery to multiple industries with Descartes' DeliveryNet solutions.

About BCE Emergis

BCE Emergis is a premier B2B e-commerce infrastructure provider, strategically focusing on market leadership in the transaction-intensive eHealth and financial services sectors. By layering technologically advanced e-commerce services on existing Internet-based platforms, Emergis offers its customers increasing value in its e-commerce adoption and ever-increasing levels of sophisticated services. These scalable solutions electronically transform business processes, such as buying, selling, invoicing and payment, and enable companies to succeed in the web-centric, cost-driven, and highly competitive global Internet economy. BCE Emergis' customers include leading North American banks and insurance companies. The Company's shares are included in the TSE 100 composite index. Please visit BCE Emergis at http://www.emergis.com for more information.

About Descartes

Descartes is a leading provider of global Internet logistics solutions that facilitate B2B e-commerce. Descartes' logistics network technology and network-based services enable companies to create high-speed, high-performance fulfillment networks called DeliveryNets. DeliveryNet solutions empower organizations to deliver reliable, responsive customer service in a profitable manner and to create innovative new products and services.

DeliveryNet solutions leverage Descartes' Internet-based Global Logistics Network, an open, worldwide network of shippers, receivers, carriers, logistics service providers, e-marketplaces, vertical portals, and transportation exchanges. The result is a global logistics community connected to Descartes' technological infrastructure that provides cost savings and revenue opportunities for businesses that need to manage physical product movement.

For more information about Descartes, visit www.descartes.com.

All registered and unregistered trademarks mentioned in this release are the property of their respective owners.

This release contains statements that may relate to expected revenue from and transaction volume of Descartes customers, performance of Descartes' DeliveryNet solutions, market dynamics and other matters that may constitute forward-looking statements that involve risks and uncertainties. The Company's actual results may differ from the results discussed in the forward-looking statements as a result of factors discussed in the section entitled, "Risk Factors" in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada.