Lucent Selects IE-Engine to More Effectively Manage Employee Healthcare Costs; IE-Engine Automates Carrier Consolidation Process and Vendor Performance Tracking.

Business Editors/High-Tech Writers

WALTHAM, Mass.--(BUSINESS WIRE)--Feb. 19, 2003

IE-Engine (www.IE-Engine.com) a leading developer of Human Resource Cost Management (HRCM) software for Global 1000 companies, today announced that Lucent Technologies, Inc. has joined its growing list of customers. IE-Engine's HRCM solution will enable Lucent to better manage the data, process and cost associated with providing employee benefits, particularly healthcare.

Lucent's initial use of IE-Engine's HRCM solution will be to automate HR benefits processes and more effectively manage its health care costs and other HR vendor services, which cover Lucent's 40,000 US-based employees, and more than 146,000 retirees and other former employees. Lucent will also be deploying IE-Engine's Performance Manager module to facilitate quality and service performance tracking of all Lucent HR vendors.

"Lucent always seeks to leverage technology it believes can manage and contain costs," stated Barbara Spillane, strategic sourcing manager at Lucent. "IE-Engine's HRCM software allows us to do so throughout the entire HR cost management lifecycle by enabling us to choose the most appropriate vendor and monitoring their compliance with contractual performance guarantees throughout the year. Having outsourced many HR functions, it is more important than ever to ensure the services being delivered are of the highest caliber and appropriately priced."

"As the latest Global 1000 company to join our growing list of customers, Lucent will make more strategic, cost-effective employee benefits decisions with IE-Engine's HRCM solution," said John McMahon, president and CEO of IE-Engine. "IE-Engine gives HR benefits managers the same power to manage costs, vendors and data as their engineering, manufacturing, supply chain and purchasing counterparts."

IE-Engine's Web-based platform creates a data warehouse for all vendor, contract, plan and benefits information. It's HRCM modules then enable HR decision makers at Global 1000 organizations to execute more effective employee benefits decisions and spending. This gives HR professionals the power to make strategic decisions resulting in:

-- Higher quality employee benefits & services

-- Lower employee benefit costs

-- Lower internal administrative costs

-- Lower recurring benefits consulting fees

About IE-Engine

IE-Engine Inc. (www.IE-Engine.com) is the leading developer of Human Resource Cost Management (HRCM) software. The Company's Web-based applications enable HR decision makers at Global 1000 organizations to make better strategic decisions, reduce costs and increase the quality of employee benefits, particularly healthcare. With a growing network of more than 240 healthcare and HR service providers, IE-Engine helps large organizations such as Ford, Dow Chemical, Lucent, Staples and ABB automate the entire benefits lifecycle through plan management, automated sourcing, negotiation, carrier performance tracking, cost analysis and employee surveys.

Founded in 1999 and headquartered in Waltham, Mass., IE-Engine is a privately-held company backed by Kodiak Venture Partners, Adams, Harkness & Hill, and Toronto-based RBC Capital Partners, the venture capital unit of Royal Bank of Canada.