New Transportation Powerhouse Emerges With Formation of Logistics.com.

Business Editors

BURLINGTON, Mass.--(BUSINESS WIRE)--Jan. 11, 2000

New Company Acquires a Business Unit From Sabre, Matching

Existing Market Strengths With New On-Line Initiative to Transform

U.S. Logistics Industry; MIT's Dr. Yossi Sheffi to Lead

Logistics.com(TM); Internet Capital Group Provides $30 Million in

Funding, Strategic Guidance and Operational Support

The U.S. freight transportation market entered a new era today with the announced formation of Logistics.com, Inc., a unique company that blends forward-thinking Internet technology with a proven track record of thought leadership and success. Built on the logistics business unit acquired from Sabre Inc., Logistics.com(TM) is integrating its suite of 15 established optimization-based decision support systems and products -- currently an installed base of more than 100 carriers and shippers -- with its new Internet-based Digital Transportation Marketplace (DTM).

Having provided optimization solutions to transportation service buyers and sellers for more than a decade, Logistics.com is able to act as a neutral market maker in the transportation industry. And now, through the company's DTM, Logistics.com is bringing carriers and shippers together in an independent communications and trading environment.

Using the company's decision support systems as agents, carriers can interface directly with the DTM to maximize yields, decrease "deadhead" miles, bring drivers home, and increase revenue per mile. Shippers, in turn, benefit from the company's strategic auction solution, OptiBid(TM), designed to optimize annual contract bidding. More than 30 shippers have used OptiBid's pioneering conditional bid optimization system over the last three years to establish their annual contracts. In addition, more than 20 shippers currently use SureShipping(TM), the company's proven transportation management system.

By integrating the shipper and carrier systems into the DTM, Logistics.com is enabling real-time transportation buys while creating a faster, more efficient decision-making environment.

This unique service and product offering provides the transportation industry a true, one-stop solution to help manage supply chains more effectively.

"Our software products have enabled us to build powerful relationships with many leaders in the transportation industry, including Yellow Freight, Kraft Foods, Wal-Mart, Procter & Gamble, Ford Motor Company, M.S. Carriers, and J.B. Hunt," said Yossi Sheffi, CEO of Logistics.com. "The Internet marketplace will build on these relationships by providing carriers and shippers the opportunity to interact with each other, bid competitively, and track and trace shipments in real time."

Sheffi to lead Logistics.com

Leading the new company as Chief Executive Officer is Dr. Yossi Sheffi, a widely known expert in logistics, supply chain management, and electronic commerce. Dr. Sheffi is the original founder of PTCG, a company that was acquired by Sabre in 1996 to form the core of Sabre's Logistics Group, which Logistics.com acquired today. He is taking a partial leave of absence as Director of the Center for Transportation Studies at MIT to assume the CEO position at Logistics.com.

Logistics.com receives backing from Internet Capital Group

The formation of Logistics.com is made possible through $30 million in funding, strategic guidance and operational support from Internet Capital Group (NASDAQ: ICGE), an Internet holding company actively engaged in business-to-business e-commerce.

"Internet Capital formed a partnership with Logistics.com based on its ability to be a market maker through established logistics systems and new Web-enabled solutions. This unique combination differentiates it completely from competitors," said Walter Buckley, CEO of Internet Capital Group. "Internet Capital's strategy is to integrate our partner companies into a collaborative network that leverages the collective knowledge and resources of the group -- a strength which will enhance Logistics.com's competitive advantage."

Logistics.com is headquartered in Burlington, Mass., with offices in Oklahoma City. All former Sabre employees who worked to develop, support, and implement Sabre's shipper and carrier products will continue as employees of Logistics.com. For more information, see the company Web site at www.logistics.com.