Co-Founder and Veterans of E*Trade Help Launch Online Enterprise.

Business Editors/High-Tech Writers

COMDEX Fall 2000

HAYWARD, Calif.--(BUSINESS WIRE)--Nov. 10, 2000

ITXS, Inc. announces the launch of a dynamic web-enabled, clicks and mortar initiative formed by the co-founder and veteran executives of E*Trade.

ITXS offers a unique, end-to-end solution to buyers and sellers of pre-owned and excess high-end, IT equipment. With its 21,000 sq. ft. Technology Center in northern California, ITXS is the first business-to-business trading model to offer a full suite of value-added services and products including custom hardware upgrades, software configurations, product certification and warranties, financing alternatives and logistics support.

"The computer industry is entering an evolution shaped by continual technological advances that create growing disparities within the useful life cycle of IT equipment used in leading edge technology applications," said Bernard Newcomb, a founding member on the Board of Directors of ITXS and co-founder of E*Trade. "The ITXS mission is to harness this evolution and provide a new market for the exchange of quality, high-end hardware together with a unique set of value-added components. We have both the knowledge and resources to accomplish this goal while offering emerging companies and companies with customary enterprise needs the first cost-effective and reliable alternative to purchasing new computer equipment."

In addition to former E*Trade executives, the founders of ITXS include Sycomp, a Silicon Valley systems integrator, consultant and equipment reseller dedicated to sophisticated users of information technology including financial services companies, airlines and government agencies.

"ITXS' key differentiation is that it is a hybrid with the knowledge and expertise from the best of both business models," commented Herb Swanson, ITXS Advisory Board member and former Director of Applications at E*Trade. "We believe that in order to succeed we must integrate the new online model (E*Trade) with the traditional business model (Sycomp). The companies that can accomplish this will be the ones that establish the future of the new economy, where ITXS will be a market leader in its field."

ITXS' methodology is based on generating true market value for buyers and sellers of enterprise level, pre-owned and surplus IT equipment. By acting as a value-added exchange, and not a broker, ITXS allows sellers to make more money and buyers to pay less while still having the benefits of configuration management, warranties and other services traditionally only provided with new equipment. The ITXS trading exchange, coupled with value-added services previously associated with new equipment, creates the only low cost model in a full service, easy-to-use environment.

The ITXS exchange technology is designed to lead the market. In partnership with PNC Bank, ITXS will offer fully automated payment assurance processes. By leveraging PNC Bank's services, ITXS can provide diversified payment options, financial assistance and secure fund transfers. As part of its internally developed, proprietary exchange software application, ITXS has developed a custom site control panel for managing all aspects of the exchange and auction process. With its custom application and experienced development team, ITXS has an exceptionally flexible, portable and scaleable site.

"The business model we have created will have a profound impact on the current methods used by companies to acquire IT computer technology. ITXS will set a new precedent on how IT professionals choose and purchase the computer products that will be the backbone and main infrastructure of their companies," stated Mike Symons, ITXS CEO and former Director, Systems Group of E*Trade. "ITXS couples the intelligence of true online market leaders with hands-on, IT product knowledge."

Headquartered in Hayward, CA., with development offices in Los Gatos, CA, ITXS is a business-to-business trading exchange providing value-added services to leading data centers and emerging companies. Founded to provide a unique solution to pervasive problems in the asset management of high-end computer equipment, the management team at ITXS offers decades of industry experience in technology, sales and marketing.