MindFlow Technologies, Inc., Introduces ProcureMind 3.0; Major Upgrade to Strategic Sourcing Software With Demonstrable ROI in Three Months.

Business/Technology Editors

PLANO, Texas--(BUSINESS WIRE)--Feb. 19, 2002

MindFlow Technologies, Inc., a pioneer in strategic sourcing applications, launched ProcureMind 3.0. It helps purchasing managers save money and reduce sourcing cycle times by standardizing the best-in-class strategic sourcing process, institutionalizing the sourcing knowledge, and increasing sourcing professional productivity. ProcureMind 3.0 is unique in enabling purchasing managers to formulate sourcing strategies by bundling critical, low spend items into complex, high spend categories that enable purchasing managers to dynamically model the inbound supply chain during strategic negotiations.

"MindFlow is a small e-sourcing vendor that is leading the convergence of strategic sourcing and supply chain planning," wrote Pierre Mitchell, Vice President, Research, AMR Research, Boston, MA, in a national report. "MindFlow has 15 major customers in five verticals, with its core verticals in Retail/CPG, High-tech, and Chemicals. Even more encouraging, it has been demonstrating success at the world's leading PC manufacturer and also the world's leading beverage firm."

ProcureMind 3.0 is a major step to providing end-to-end strategic sourcing enterprise class solutions. Consistent with that goal, ProcureMind 3.0 introduces three new components:

Category Spend Analysis functionality:

-- Allows users to perform "what-if" spend analysis at each stage of the negotiation process to see the dynamic impact on item spend, item spend category aggregation, supplier spend allocation, ship to spend allocation and projected savings.

-- Predefined reports with imbedded logic that quickly alerts buyers to spend leverage, supplier consolidation opportunities and formulation of appropriate bundling strategies prior to eRFQ/I setup.

eRFQ/I module that provides:

-- Secure web-based application that allows buyers, suppliers, and other stakeholders to design and communicate RFQs electronically over the Internet.

-- Contains pre-optimization bid analysis reports that allow buyers to analyze supplier bids within and across rounds for quick identification of cost savings opportunities.

-- Tight integration with existing ProcureMind modules enables bid data to be seamlessly imported for in-depth constraint-based sourcing analysis.

Data Integration

-- Uses XML-based technology for easier and accurate upload of master and transactional data from disparate legacy systems in the ProcureMind database.

"Over the last 12 months, MindFlow Technologies has enabled in excess of $55 million in tangible savings for more than ten customers across different strategic spend categories and reduced sourcing cycle times by 35% - 75%" said Jay Reddy, CEO of MindFlow Technologies. "Most Purchasing Managers who use ProcureMind-enabled solutions achieve improved earnings per share for their company within one quarter."

About MindFlow Technologies

MindFlow Technologies has pioneered the strategic sourcing application market. The company provides a suite of applications and professional services that enable purchasing professionals to significantly reduce both sourcing costs and cycle times while institutionalizing best-in-class decision-making processes. MindFlow delivers the only solution that models proven sourcing strategies for complex, high-spend categories; offers execution tools for fact-based, face-to-face strategic negotiations, bid analyses and auctions; and ensures compliance of procurement execution with sourcing plans. In partnership with its customers during 2001, MindFlow delivered cost reductions in excess of $55 million.

MindFlow Technologies is headquartered at 6504 International Parkway, Plano, Texas. For more information, please visit www.mindflow.com, or contact: