Commerce One Announces Availability of Collaborative Procurement Solution.

Business Editors and High Tech Writers

PLEASANTON, Calif.--(BUSINESS WIRE)--June 21, 2001

Buyers and Suppliers to Benefit From Complete Source-to-Pay

Automation and Extensive Real-Time Information Exchange Capabilities

Commerce One, Inc., (Nasdaq: CMRC) the e-marketplace company, today announced the immediate availability of Commerce One Collaborative Procurement, the next generation of e-procurement solutions. This offering combines the company's market-leading procurement applications with extensive, real-time information exchange between trading partners to maximize return on investment for buyers and suppliers by keeping transactions completely online.

"The first generation of e-procurement solutions established online transactions between buyers and suppliers. However, order changes, for example, often required a phone call, which moved transactions offline and diminished return on investment," said Mike Micucci, vice president of solution strategy for Commerce One. "Collaborative procurement keeps buyers and suppliers online throughout the entire procurement process, from sourcing through payment. This will help both buyers and suppliers save time and money."

According to a study by R. B. Webber and Company, the Commerce One solution is expected to save buyers an additional 46 percent in process costs compared with traditional e-procurement solutions. It is expected that the offering will enable collaborative communication throughout the entire source-to-pay process, with support for complex requirements such as interactive order changes, expanding the benefits of e-procurement for both buyers and suppliers. The solution supports the procurement of a broad spectrum of goods and services.

Collaborative Procurement tackles the challenge of supplier participation in business-to-business e-commerce by enabling an enterprise to create a supplier portal. The portal allows suppliers to respond to RFQs and order changes and provide real-time shipping and invoice details directly to the buyer. The expected benefits to suppliers include the capability to collaborate on catalogs, inventory, order changes, shipping, invoice and payment. The solution is expected to significantly reduce order fulfillment costs and enable suppliers to increase working capital by reducing DSO (days sales outstanding).

New, advanced features will enable buyers to plan better for product delivery, automate order changes and leverage early payment terms with all trading partners. In addition to the supplier portal, buyers have access to more than 150,000 suppliers through Commerce One e-marketplaces linked through the Global Trading Web(TM), the world's largest business-to-business trading community.

"With its Collaborative Procurement solution, Commerce One delivers a common infrastructure for automating and integrating the complete range of procurement activities -- from sourcing to ordering to supplier management," said Tim Minahan, vice president of supply chain research, Aberdeen Group. "Built on the Commerce One open marketplace platform, Collaborative Procurement is a highly flexible solution that grows with a company's procurement needs and comfort level, enabling a buying organization to gain a quick and continuous ROI."

Collaborative Procurement leverages Enterprise Buyer(TM), a joint solution from SAPMarkets and Commerce One, as well as key collaboration capabilities from Commerce One MarketSite(TM), the e-marketplace operating environment. With Collaborative Procurement, enterprises have the platform to extend capabilities with additional supply- or demand-based applications from Commerce One or other partners.

Key capabilities of the Collaborative Procurement solution include:

-- Procurement: Automates the entire purchasing cycle through real-time,
inter-enterprise collaboration. Important features include access to more than
150,000 suppliers via the Global Trading Web, real-time price and availability
checks, collaborative order changes and ERP integration with pre-built
connectors.

-- Supplier Management: Enables buyers to manage suppliers directly through a
self-service supplier portal. Features include the ability to control
participation in the trading environment while managing supplier adoption and
content processes directly through a robust set of order management and content
tools.

-- Contractor Management: Allows enterprises to monitor and control contractor
spend. Features include the ability to track and control contractor time and
expense cost, while automating timecard and expense report transmissions,
approvals, payment to staffing suppliers and contractor rate comparisons.

-- Dynamic Bidding: Provides integrated reverse auction/RFQ and spot-buy
capabilities. Important features include the ability to support ad-hoc
purchases and contract awards, multi-variable bidding to allow supplier
differentiation beyond price, Web-based bidding event set up and bidding
process to enhance supplier collaboration and reduce cycle time, and integrated
procurement and sourcing to allow seamless creation of purchase orders from
winning bids.

-- Payment: Streamlines payment and invoice processing. Features include
integrated payment and financial services, electronic invoices and payment
initiation, tracking and invoice dispute notification.

About Commerce One

Commerce One(R) (Nasdaq: CMRC) is the e-marketplace company. Through its software, services and Global Trading Web(TM) of interconnected business communities, Commerce One enables worldwide commerce on the Internet. With headquarters in Pleasanton, California and offices around the world, Commerce One can be reached by phone at 800 308 3838 or [phone] or via the Internet at www.commerceone.com.

Forward Looking Statements

The foregoing paragraphs include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements concerning the release of Commerce One Collaborative Procurement, the capabilities of such solution including complete source-to-pay automation, extensive real-time information exchange and the enabling of collaborative communication and the anticipated benefits to be gained by buyers and suppliers, including increased return on investment and reduced transaction times and costs. The words "believe," "expect," "will" and similar phrases as they relate to Commerce One are intended to identify such forward-looking statements. Such statements reflect the current views and assumptions of Commerce One, and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These factors include, but are not limited to, reduction in demand for services and products exchanged on e-marketplaces, pricing pressures, unexpected expenses, the possibility that the e-marketplace solution offered may not meet user expectations, the extent of customer adoption and utilization of the solution provided, actual efficiencies and economies of scale may not be as pronounced as those anticipated, general economic conditions, risks related to the Internet, intense and increasing competition in the market and volatility of the stock market. For a discussion of these and other risk factors that could affect Commerce One's business, see "Risk Factors" in Commerce One's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2000 and its quarterly report on Form 10-Q for the quarter ended March 31, 2001.

Note to Editors: Commerce One, Many Markets. One Source. Global Trading Web, Commerce One.net, BuySite, MarketSite, eLink, MarketWise, Net Market Maker, XML Common Business Library, XML Development Kit, XML Commerce Connector, MarketSite Builder, and SupplyOrder are either trademarks or registered trademarks of Commerce One, Inc. Enterprise Buyer and MarketSet are trademarks of Commerce One, Inc., and SAPMarkets. All other company, product, and brand names are trademarks of their respective owners.