Commerce One Announces Highly Successful 1998; Global E-Procurement Provider Reports Continued Strong Growth and Market Leadership.

WALNUT CREEK, Calif.--(BUSINESS WIRE)--Feb. 22, 1999--Commerce One, Inc. today announced the close of a highly successful 1998, with the addition of 15 new enterprise customers, dramatic growth in the number of new suppliers participating in the Commerce Chain Solution, strategic partnerships, market-leading venture capital funding, product enhancements, and the acquisition of Veo Systems, a pioneer in XML development.

The Commerce Chain Solution by Commerce One continued to establish itself as the solution of choice among industry leading enterprise organizations in a variety of industries throughout the United States and Europe. For the year, Commerce One added 15 new customers, bringing the total number of customers to 19 - more than any other e-procurement vendor. The company's customer base today includes such dynamic organizations as Eastman Chemical (NYSE:EMN), Schlumberger Oilfield Services (NYSE:SLB), MCI WorldCom (NASDAQ:WCOM), Pacific Gas & Electric (NYSE:PCG), Los Angeles County, University of California Los Angeles and California State University Fullerton.

Additionally, Commerce One has dramatically increased the number of suppliers who participate in the Commerce Chain Solution. Today there are over 5,100 suppliers and manufacturers with over five million items that are available to buying organizations through Commerce One MarketSite. Suppliers who have formed strategic agreements with Commerce One include Office Depot, NECX and Wareforce.

Commerce One also received unprecedented industry support in 1998 from the financial community. In August, the company completed a $31 million round of financing - establishing Commerce One as the best-capitalized company in the market. Funding to-date totals more than $51 million, received from such companies as MCI Systemhouse, GE Capital's Equity Capital Group, Rho Management and SAP. This funding has been used to expand operations, accelerate product development and fund strategic partnerships and acquisitions.

Commerce One also made a significant investment in enhancing its e-commerce technology through the acquisition of industry-leader Veo Systems, a pioneer in the development of Extensible Markup Language (XML), in December. Commerce One will incorporate XML technology into the Commerce Chain Solution to deliver more robust business-to-business interoperability between buyers and suppliers in a trading community that will increase efficiencies and reduce costs for all participants.

Commerce One also released significant product enhancements over the course of the year, delivering over 30 new features to the Commerce Chain Solution to provide a superior return on investment (ROI) to its customers. In November, the company announced the release of Commerce One BuySite 4.0, delivering enhancements designed to streamline enterprise procurement processes through a significantly improved web-based user interface, refined search and filtering capabilities, and a broad range of platform support. The company also announced the release of Commerce One MarketSite 2.0, enhanced to provide increased services to both buyers and suppliers to streamline and improve communications between trading partners.

Finally, Commerce One formed strategic alliances in 1998 with PricewaterhouseCoopers and MCI Systemhouse to implement robust electronic procurement solutions for Commerce One's customers. These industry-leading partners join the already impressive community of strategic alliances Commerce One has formed with such leading companies as Microsoft and SAP.

"Businesses are quickly realizing the tremendous cost-savings and business benefits possible through automation of their entire indirect goods and services supply chain," said Mark Hoffman, president and CEO of Commerce One. "Our tremendous success in 1998 and expanding customer base is evidence of Commerce One's global leadership in electronic procurement solutions. As we continue to push the boundaries of what dynamic trading communities can deliver to the buyers and suppliers that participate, we will continue to lead this market."

About Commerce One

Commerce One is the leading global provider of web-based, enterprise procurement solutions that dynamically link buying and supplying organizations into real-time trading communities. The Commerce Chain Solution by Commerce One enables companies to significantly reduce operational costs and increase efficiency by automating the entire indirect goods and services supply chain. As a result, enterprise organizations are able to realize a strategic competitive advantage as well as a rapid return on investment. The Commerce Chain Solution includes Commerce One BuySite, which automates the internal procurement process from requisition to order, and Commerce One MarketSite, which automates supplier interactions from order to payment.

Commerce One is located in Walnut Creek, Calif. and can be reached by phone at [phone] or [phone] or via the Internet at http://www.commerceone.com.

Commerce One, Commerce Chain, BuySite, and MarketSite are either trademarks or registered trademarks of Commerce One. Other product and company names mentioned herein might be the trademarks of their respective owners.