Capstan Systems Secures $23 Million in Funding From Major Corporate and Venture Capital Investors.

Business Editors/Technology Writers

SAN FRANCISCO--(BUSINESS WIRE)--May 12, 2000

Corporate Momentum Accelerates With New Customers and Selection By i2

For Inclusion In FreightMatrix(tm) e-Logistics Marketplace

Capstan Systems, the innovation leader in global supply chain execution, announced the completion of a $23 million third round of funding. The funding includes the participation of strategic corporate investors -- i2 Technologies, Inc. (Nasdaq:ITWO), Bechtel Enterprise Holdings, Inc. and Celestica, Inc. (NYSE:CLS) -- plus the addition of new venture investors JAFCO America Ventures and FG II Ventures. The original investors, Sterling Payot Company and Orchid Group Holdings, have also reinvested in this round. The funding will provide additional resources to extend the network of partnerships with leading global logistics services providers and to expand the breadth of Capstan's breakthrough web solutions for global supply chain execution, continuing to build upon the strong momentum that Capstan Systems has achieved since the beginning of this year.

"It is becoming increasingly clear that both corporate-sponsored and public B2B e-business marketplaces will need to incorporate a solution for supply chain execution in order to deliver the full potential these new initiatives promise," said Stephen Hill, Managing Director of JAFCO America Ventures. "Capstan's unique web-native technology and network of global supply chain services, combined with the tremendous strides Capstan has made recently in completing its management team, acquiring new customers, and forging a corporate alliance with i2, is positioning the company to become the preeminent B2B infrastructure provider for global supply chain execution."

Capstan's newly-formed relationship with i2 highlights a series of significant accomplishments for the company. Under the terms of the agreement with i2, Capstan's global logistics, import and export management functionality will be resold by i2 as an integrated part of the FreightMatrix e-logistics marketplace. FreightMatrix is the community-centric marketplace that provides logistics commerce, planning and shipment management services for shippers, carriers and logistics service providers to better manage their own internal logistics systems and collaborate with their customers and suppliers. The agreement provides Capstan with immediate global distribution and the ability to benefit from i2's significant e-business presence, including their recent alliance with Ariba and IBM.

Capstan has also added several new direct customers for its Business Service Provider (BSP) solution over the last 90 days, including Michaels Stores, Inc. (Nasdaq:MIKE), and investors Bechtel and Celestica. Customers of Capstan's BSP solution for web-native global supply chain execution services are currently in production over a trading network spanning 4 continents. The hiring of executives Steve Anderson as Chief Financial Officer and Stephen Zocchi as Chief Marketing Officer complete a management team that is equally balanced in global logistics expertise, technology expertise and proven experience building successful Internet start-ups.

"Our vision to enable a breakthrough for global supply chain execution is resonating strongly with the leading corporations, net market makers and global logistics services providers who see their future growth and competitiveness driven by e-business," said Ron Alvarez, President and CEO of Capstan Systems Inc. "This significant funding round is another strong endorsement of the corporation's ability to execute to our vision and a confirmation of our potential to become a leader in the in B2B infrastructure marketplace."

About Capstan Systems

Capstan Systems delivers a breakthrough business-to-business Global Supply Chain Execution infrastructure optimized for the new demands of an e-business world. A pioneering web-native Business Services Provider (BSP), Capstan Systems is creating a network linking all the participants in the international trade transaction lifecycle, enabling a valuable "network effect" for both corporate subscribers and logistics services providers using the Capstan networked application services. Capstan solutions are in use at major corporations worldwide, and are integrated within i2' FreightMatrix and TradeMatrix electronic marketplaces. By providing proactive visibility and control over the global supply chain, Capstan enables companies and digital exchanges to get the right goods to the right place, at the right time--every time.