Cephren Launches MarketNet Bidding Service, Providing the Construction Industry With an Efficient Way to Procure Goods and Services Online.

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--May 30, 2000

General Contractors, Subcontractors, Distributors and Manufacturers

Now Able to Solicit and Submit Bids for Materials and Services

Through Cephren's Online Workplace

Cephren, Inc., a leading online workplace for the $3.6 trillion global construction industry, today announced the commercial launch of its first Cephren MarketNet(TM) service, online bidding for materials and services. For the first time, general contractors, subcontractors, distributors and manufacturers can solicit and submit bids for materials and services to online members of the Cephren MarketNet network.

Cephren's e-commerce service enables communities of general contractors, subcontractors and suppliers with established working relationships to transfer those relationships online. Business partners are able to preserve and enhance their relationships while gaining the ability to significantly reduce the time and effort needed to solicit, submit and approve project bids.

"At Cephren, we understand the entire construction process, from initial concept and design to construction and project closeout," said Timothy S. Perini, vice president of business development and marketing at Cephren, Inc. "We are using that knowledge and our technical expertise to help our customers streamline and automate the bidding process, enabling them to eliminate time-consuming paperwork and concentrate on what they do best -- build. All project participants benefit from our bidding service. Contractors can get quicker responses on bid requests, while suppliers can bid on more projects in less time, potentially adding to their revenues and expanding their market reach."

Since January, a select group of charter customers has been using Cephren MarketNet's bidding service and has provided feedback to enhance the product's features and functionality. MarketNet's current e-commerce customers represent more than $1.5 billion in purchases annually and include such notable companies as Mass Electric Construction Company, E-J Electric Co., J. A. Penney Co., Liberty-Wesco, Fischbach & Moore Electric LLC, DualStar Technologies, Forest Electric (EMCOR), Midwest Mechanical of New Jersey, and Watsco.

"Our initial test of Cephren MarketNet's bidding service has been extremely positive," said Bob Knudsen, director of marketing for Midwest Mechanical, a $350M specialty subcontractor. "MarketNet has made it possible to streamline our procurement process, get better pricing, reduce time and waste, and increase our margins as a result."

Bidding in Action

Bidding for services and materials within MarketNet is easy and intuitive. The process automates and streamlines the current offline practice of sending out Requests for Quotations (RFQs) or Invitations to Bid (ITBs) to subcontractors and vendors and receiving responses via fax. MarketNet saves a significant amount of time by allowing multiple RFQs or ITBs to be sent out at once, electronically, rather than one-by-one over the fax machine, to a target list of vendors or subcontractors.

For general contractors who want to send out ITBs, MarketNet automatically provides a list of pre-qualified subcontractors who can bid. For each bid package, subcontractors can view project plans and specifications and submit their bids online through the MarketNet web site. Once bids are received, general contractors can access a comparison sheet of all bids. For material RFQs, MarketNet automatically sorts through a subcontractor or contractor's bill of materials and provides a list of pre-qualified, credit-worthy vendors that can fulfill the order. The system pairs vendors with groupings of products based on an intelligent Construction Specifications Institute (CSI) matching system. Once notified by email, vendors can respond to one or more RFQs, all within the Cephren MarketNet web site. The system then imports each vendor's response directly into a detailed spreadsheet for review. Finally, one or more purchase orders are generated electronically for each vendor chosen by the buyer.

To date, both buyers and sellers using Cephren MarketNet have reported significant process and time savings. Outdated, paper-based communication has been greatly reduced and the process, which traditionally took days and sometimes weeks to complete, can now take place in a matter of hours. The result for both buyers and sellers can be a dramatically improved bottom line.

About Cephren

Cephren, Inc. (www.cephren.com), is a leading online workplace for the $3.6 trillion global construction industry. Cephren is helping the industry change the way it builds the world with its leading framework of web-based collaboration and e-commerce services, including Cephren ProjectNet(R), Cephren's award-winning project collaboration and project management service, Cephren MarketNet(TM), Cephren's fast-growing, online marketplace for buyers and sellers of construction products and services, and Cephren PrintNet(TM), Cephren's online reprographics and print services marketplace. With more than 1,300 active company locations using its online services for projects with construction value that exceeds $40 billion, Cephren is the industry pioneer serving this market. Cephren's services are currently being used at internationally known firms including The Bechtel Group, Morrison Knudsen, Webcor Builders, Gensler, HOK, 3Com, Odebrecht, and BSW International. Companies participating in Cephren's e-commerce services include Mass Electric Construction Company, E-J Electric Co., J. A. Penney Co., Liberty-Wesco, Fischbach & Moore Electric, Inc., DualStar Technologies, Forest Electric (EMCOR), Midwest Mechanical of New Jersey, and Watsco. Cephren has approximately 200 employees and is based in Palo Alto, California with offices in New York, Michigan and London. Cephren also works through resellers and partners in other parts of Asia and Latin America.

Note to Editors: ProjectNet is a registered trademark and Cephren, the Cephren logo, Cephren MarketNet, Cephren PrintNet and Change The Way You Build The World are trademarks of Cephren, Inc. in the USA and other countries. All other brand names, product names, or trademarks belong to their respective holders.