Michigan First to Conduct Live E-Procurement Transaction Using Ariba Buyer 7.0 Hosted by Epylon and Deployed by Andersen Consulting.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 13, 2000

Boise Cascade Office Products and Lansing Sanitary Supply first

suppliers to receive electronic orders from The State of

Michigan

Epylon Corporation, a leading provider of hosted eBusiness solutions for education and government institutions, today announced that the State of Michigan has successfully conducted the first live government eProcurement transaction using Ariba(R) Buyer(TM) version 7.0 hosted by Epylon. In September, Michigan awarded Epylon a contract to implement the company's public sector eProcurement solution, based on Ariba technology, in a secure, hosted environment. Andersen Consulting configured Epylon's tailored solution to meet the unique needs of Michigan and its employees. Andersen Consulting will be renamed Accenture on 01/01/01.

Epylon and Andersen Consulting deployed "MiBuy," the state's new procurement solution in less than 60 days, with 50 users from four state agencies, including the Department of State, Michigan State Police, the Department of Corrections and the Department of Management and Budget. Users from these four agencies can procure goods from local Michigan suppliers such as Lansing Sanitary Supply and Michigan State Industries, as well as national suppliers including Boise Cascade Office Products and Wesco.

The Epylon solution is available at no upfront capital cost to the State of Michigan, and Epylon charges a small transaction fee to suppliers in exchange for providing the vendors with access to a powerful new distribution channel.

"The State of Michigan is entering the eCommerce realm with partners that have a strong business-to-business foundation," said Janet E. Phipps, Director, Department of Management and Budget. "This six month proof of concept phase will allow us to see if the benefits achieved in various private and public entities can be realized here."

"Michigan is a clear leader in eGovernment. The state has shown great commitment to realizing savings and efficiency gains with the adoption of an unparalleled eProcurement strategy," said Stephen J. George, founder and CEO of Epylon. "Our company has worked closely with Andersen Consulting to bring the benefits of eProcurement to Michigan in under 60 days, helping the state's existing suppliers integrate into the Epylon Supplier Network, providing change management services, and training the user community."

David Ancell, Director, Office of Purchasing for Michigan's Department of Management and Budget, is impressed with the rapid pace at which Epylon and Andersen Consulting were able to deploy the solution to the state's agencies. "This is the fastest implementation we have ever experienced," said Ancell, who estimates that the state will realize significant cost savings over five years by switching to eProcurement. Michigan's goals for MiBuy include increasing purchasing and process efficiencies and reducing operating costs, while streamlining the state's entire procurement process. The Michigan Department of Management and Budget sets purchasing policies and selects technology solutions for all state agencies.

Ariba Buyer, which powers the Epylon eProcurement solution, enables the State of Michigan to electronically aggregate its purchasing from each employee desktop and to direct spending to preferred suppliers and B2B marketplaces, resulting in higher-volume pricing and streamlined procurement processes.

About Epylon Corporation

Epylon Corporation is the leading provider of hosted eBusiness solutions for education, government and other public sector institutions. Leveraging its alliances with Andersen Consulting, which will be renamed Accenture on 01/01/01, Deloitte Consulting, and Ariba, Epylon provides a tailored eProcurement solution that includes expertise in public sector business processes, technology designed around the public sector's unique operating and workflow environment, the leading business-to-business eCommerce platform, change management consulting and integration expertise. Both AC Ventures, the venture capital unit of Andersen Consulting and Deloitte Consulting Ventures have purchased an equity stake in Epylon. The company currently has over 1,200 registered school districts and government agencies, representing over $7 billion in annual spending, and more than 1,500 registered supply partners including Compaq, Office Depot, Grainger, Staples, Xerox, Wesco and Barnes & Noble.com. Headquartered in San Francisco, Calif., Epylon is privately held and can be found on the Web at www.epylon.com.