British Telecom and Commerce One Announce First Live Transactions on BT MarketSite.

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 9, 1999--

First Online Transactions On BT MarketSite Have Taken Place as BT

Procures Indirect Goods from Supplier, Orion Solutions Ltd.

British Telecom and Commerce One, Inc. (Nasdaq:CMRC), the leading global provider of e-commerce solutions, today announced the first live online transactions on BT MarketSite as BT places its first internal orders through Commerce One(R) BuySite(tm) with Orion Solutions Ltd., a subsidiary of Orion Group Ltd., the UK's leading Computer Supplies Specialist.

As BT signs up further customers, it is anticipated that companies such as The Boots Company will commit to follow BT with live procurement transactions over BT MarketSite. The BT Business Services group, BT's internal purchasing department in charge of delivering a world class procurement and supply management organization, has kicked off automated purchasing by selecting and placing orders with Orion.

Through employing the Commerce One BuySite application with BT MarketSite, BT has built upon the work already undertaken to improve the supply chain and transform BT into a true e-business organization. By rationalizing the supply base and improving the internal process for purchasing, BT has already reduced the average cost of a purchasing transaction from 70 pounds ($113) to 50 pounds ($80). BT estimates that the cost per transaction will fall again to 5 pounds ($8) as a result of the use of BT MarketSite.

BT plans to place all six of its procurement business streams, which include Stationery, Corporate Clothing, Car Hire, Travel, Agency Staff and Desktop Computing, on BT MarketSite and to procure 95% of goods required internally by BT using eBusiness Solutions by February 2000. BT currently handles 1.3 million purchasing transactions of indirect goods each year.

The BT internal BuySite implementation complements the strategic licensing arrangement between BT and Commerce One, whereby BT will host and operate BT MarketSite, powered by Commerce One. Launched in June, BT MarketSite is an online trading community for business-to-business transactions. It is the first operational European business-to-business marketplace portal that automates the entire supply chain.

"By using a common trading mechanism we are able to both dramatically reduce our costs, the time taken to order and opportunities for purchasing error," said Patricia Vaz, procurement director at BT. With the first live transactions through BuySite having taken place smoothly and efficiently, we have taken the vital first step in our commitment to change the way we do business."

The BT Stationery stream placed the first order through BuySite for items including toner cartridges and computer cables from Orion, one of the first suppliers to sign up to BT MarketSite. "We are pleased to receive our first orders through BT MarketSite," said Vijay Punj, corporate sales director at Orion. "A secure line of communication has been established between us and BT. This allows Orion to now fully exploit the benefits that e-procurement offers to us as a supplier, by concentrating on further strengthening our customer relationships and extending our market presence."

About BT MarketSite

By using the BT MarketSite solution, supplier catalogues are standardized and placed in BT MarketSite. Commerce One BuySite links to BT MarketSite, enabling buyers to transact with specified suppliers whose catalogues are set up on BT MarketSite. Buyers view catalogues that are specific to their buying needs and reflect prices and discount volumes particular to their requirements. The buyer can then view the supplier's product range, stock availability and delivery time, receive a quote or place an order without ever having to make a phone call or send a fax.

Orders can be tracked automatically so that buyers are continually aware of their status and are fully aware of order arrival times. BT MarketSite also facilitates authorization of orders and accounts for all order costs.

Notes to Editors

Indirect goods and services are those used by businesses internally rather than for processing into resoluble goods or services. The indirect goods market is estimated to be worth around 21 billion pounds ($34 billion) in the UK for office equipment alone.

About Orion Group Ltd.

Orion Media Marketing is the UK's leading Computer Supplies Specialist, supplying the full range of storage media, printer supplies and computer accessories for all computer environments, from the single PC through to the largest data center.

Orion has a turnover in excess of 163M pounds and now employs over 260 people at 3 locations across the UK in Brentford, Bromley and Leeds. Orion has built a reputation for expertise, innovation and excellence.

Their partnership approach with BT and Commerce One demonstrates their commitment to continuous improvement of service, maintaining their reputation as the number one specialist in computer supplies.

About BT IMS

BT Internet & Multimedia Services provides a wide range of on-line services for consumer and business use delivered through a range of devices including consoles, TVs, PCs and kiosks: -0-

--   BT Internet -- providing a range of Internet services including
     voice over the internet whilst online and Trustwise digital
     certificates

--   btclick.com -- free Internet access service with no registration,
     fixed term contracts or monthly subscriptions

--   Talk21 -- free email address service

--   BT Interactive -- the UK's fastest ever Internet service
     currently on trial in West London

     Joint ventures include:

--   LineOne, a Web-based service offering Internet connection and
     online UK focused content. A joint venture between BT and United
     News & Media.

--   BiB, a joint venture between BT, BSkyB, Midland Bank and
     Matsushita -- providing digital interactive television services

--   Excite UK, a joint venture with US Internet portal, Excite Inc

-0-

For further information about BT MarketSite and BT's eBusiness offerings please contact:

Press and PR Manager

BT Internet & Multimedia Services

David Pincott

Lis Walton

[phone]

[e-mail]

[e-mail]

or

Bite Communications

Grant Currie

[phone]

[e-mail]

www.bitecomm.co.uk

About Commerce One

Commerce One (Nasdaq:CMRC) is a leading provider of electronic commerce solutions that dynamically link buying and supplying organizations into real-time trading communities. The Commerce Chain Solution by Commerce One, comprising Commerce One BuySite and Commerce One MarketSite, enables companies to significantly reduce operational costs and increase efficiency by automating the entire indirect goods and services supply chain. As a result, enterprise organizations are able to realize a strategic competitive advantage as well as a rapid return on investment. Commerce One is located in Walnut Creek, Calif., and can be reached via the Internet at http://www.commerceone.com/, http://www.marketsite.net/ or http://www.marketsite.bt.com.

Note to Editors: Commerce One, Commerce Chain, BuySite, MarketSite.net, are either trademarks or registered trademarks of Commerce One. Other product and company names mentioned herein might be the trademarks of their respective owners.