Business Purchasing Survey Shows 93% of Small Businesses Value Internet for Research Over Online Purchasing.

WATERTOWN, Mass. -- Despite Attention to Dollars Transacted Online, "Clicks-to-Bricks" E-Commerce Proves to be the Dominant Method of Purchasing Among Small Businesses

BuyerZone.com, the leading online marketplace for business purchasing, announced today the results of its 2005 Business Purchasing Survey, a survey of small U.S.-based companies to identify key trends in the use of the Internet for business purchasing.

Results from the survey indicate that 93% of businesses find the Internet more valuable for researching products and services, finding vendors, or comparing prices than for actually making purchases online. Only 7% of businesses feel that the ability to buy online is the most important purchasing-related use of the Internet for high-end products and services such as computer equipment and software, telecom equipment and services, and office equipment.

Saving time and money on business purchases is a major benefit of the Internet according to survey participants. 81% receive more competitive price quotes and 75% save time making buying decisions by using the Internet as part of their purchasing process.

Most current definitions of e-commerce pertain to online transactions of goods and services, but direct feedback from business buyers who participated in BuyerZone's survey clearly shows that business-to-business e-commerce includes much more than just the exchange of dollars.

"This study shows that while actual online purchases may be alive and well for consumers, most businesses take a 'clicks-to-bricks' approach to e-commerce," said Sam Zales, President and CEO of BuyerZone.com. "This is not surprising given the fact that most business purchases simply cannot be added to a shopping cart. E-commerce models that reflect this reality are well-positioned to address the commercial market."

Highlights of BuyerZone's 2005 Business Purchasing Survey include:

--Nearly all companies use the Internet for purchasing-related activity

--98% of companies plan to use the Internet for purchasing-related activity in 2005

--29% plan to use the Internet for more than half of their purchases

--77% plan to increase their use of the Internet to support purchase decisions in 2005 vs. 2004

--Overall, research is the primary use of the Internet for purchasing among businesses

--93% indicate that researching products and services, identifying vendors, or comparing prices are the most important uses of the Internet

--Only 7% indicate that buying online is the most important use of the Internet

--88% agree or strongly agree that they are more informed before speaking to vendors because of the Internet

--97% of surveyed companies use the Internet to research or identify vendors

--Three most popular purchase categories: Computer Equipment & Software (83%), Office Equipment (76%), and Telecom Equipment & Services (60%)

--Most companies (89%) do buy online but purchases are concentrated to a few types:

--Three most popular purchase categories: Business Travel (64%), Office Supplies (56%), and Computer Equipment & Software (55%)

--Three least popular purchase categories: Facilities Management (8%), HR/Benefits (9%), and Financing Activities (15%)

For complete results of BuyerZone's 2005 Business Purchasing Survey, including respondent demographics, visit: www.buyerzone.com/2005survey.

About BuyerZone.com

Since 1992, BuyerZone.com has helped millions of businesses save time and money on their most essential business purchases. With more than $2 billion in business purchasing transactions facilitated through BuyerZone.com since 2003, BuyerZone's service attracts active buyers seeking purchasing guidance across more than 100 business product and service categories. BuyerZone's free Request for Quotes service uses a dynamic matching process to connect each buyer with the most appropriate providers within a comprehensive network of over 2,500 top local and national suppliers.

BuyerZone has been named to Deloitte's "Technology Fast 50" program for New England for three consecutive years. BuyerZone is a profitable, privately held, venture-backed company whose investors include Bessemer Venture Partners, Commonwealth Capital Ventures, Flagship Ventures, BancBoston Ventures, and Women's Capital Growth Fund. Supplier Partners include First Data Corporation, Intuit, Lanier, Mitsubishi, Nortel, Pitney Bowes, Sharp and Toshiba.

For more information, please visit BuyerZone.com's web site at http://www.buyerzone.com.