Perfect Commerce Accelerates Growth and Leadership With MaterialNet Acquisition.

Business Editors/High-Tech Writers

Move Establishes Broadest Offering of

e-Sourcing, Auction and Optimization Software

and Services With 40+ Customers

Perfect Commerce, the Enterprise Supply Management (ESM) solutions provider, today announced the acquisition of MaterialNet, a leading provider of e-Sourcing, auction and optimization solutions delivered as a Web-based ASP service. The move establishes the company's leadership position based on breadth and depth of solution and customer acceptance.

"The acquisition of MaterialNet is very strategic, giving Perfect Commerce access to a broad range of new customers and markets," said Tim Minahan, vice president of supply chain research at the Aberdeen Group, Inc. "More importantly, the deal uniquely positions Perfect to execute a dual go-to-market strategy in which it continues to deliver its advanced e-Sourcing platform (Perfect Supply Manager) to Global 2000 enterprises while simultaneously reaching down market with a new, fully hosted auction and optimization solution for companies that want a quick, low-risk ROI. Perfect Commerce also provides a roadmap to migrate these organizations to a more sophisticated sourcing platform over time."

"This move helps provide a more complete enterprise solution to the market place by combining Perfect Commerce's Perfect Supply Manager software suite with MaterialNet's targeted reverse auction and optimization requirements," said Brook Foust, Analyst at Doculabs, Inc. (www.doculabs.com) an independent research and consulting firm. "Both organizations' customers will benefit from the expanded product offering and support services available from a single, integrated organization."

"This move extends our reach to first time e-Sourcing and auction customers, expands our product line to the broadest in the business, and makes our customer base the largest in the business," said James McCormick, President and COO, Perfect Commerce. "We look forward to continuing to provide our customers with best-of-breed technology and world class services and support."

Customers Applaud Acquisition

"MaterialNet's reverse auction product has consistently delivered significant cost savings on top of reducing our negotiating time," said Michael Inman, Director of General Purchasing, America West Airlines. "We look forward to working with Perfect Commerce and exploring the supplier performance management capabilities available in Perfect Supply Manager."

"We have been very pleased with the results the MaterialNet reverse auction product has been able to deliver for us and we look forward to strong continued use now that it's being delivered and carried forward by a strong player like Perfect Commerce," said Chris Howe, CPPB, Procurement Officer, Kansas Division of Purchases. "The transition has been seamless and Perfect's ownership and support has been first rate."

MaterialNet Custom Procurement Management System Re-Branded to Perfect Bid Manager

The MaterialNet Custom Procurement Management System has been re-branded Perfect Bid Manager(TM). Perfect Bid Manager expands Perfect's product offerings by including ASP-based self-service auctions as well as sophisticated constraint-based optimization for direct materials procurement. Adding Perfect's renowned services as well as multi-category expertise makes this offering the best solution available today. Perfect Commerce has acquired the MaterialNet customer support and maintenance agreements to ensure customers experience no interruption in their regular service. Perfect Bid Manager will continue to be enhanced based on customer feedback. Customers may migrate between Perfect Bid Manager and Perfect Supply Manager(TM). Perfect Bid Manager is available today starting at $10,000.

About Perfect Commerce Incorporated Perfect Commerce provides

Enterprise Supply Management (ESM) software, services and expertise that enable Global 2000 companies such as America West Airlines, Bechtel, FMC Technologies (NYSE:FTI), Hoover Precision Products, Lyondell Chemicals (NYSE:LYO), Peabody Energy (NYSE: BTU), Smurfit-Stone (Nasdaq: SSCC), Unocal (NYSE: UCL), and others to increase profits and improve product and service quality. Unlike companies offering only software or services, Perfect Commerce provides a complete solution comprised of a mature, robust full-function software system and the deep expertise and services in strategic sourcing and business process management needed to readily adopt and harness the power of Enterprise Supply Management. Perfect Commerce's offering complements and integrates with leading ERP solutions such as PeopleSoft (nasdaq: PSFT), SAP (NYSE: SAP), and Oracle (nasdaq: ORCL). Perfect Commerce is headquartered in Palo Alto, California. For further information, visit www.perfect.com or call 1-650-798-3335.

Note to Eiditors: Perfect is a registered trademark of Perfect Commerce, Inc. Perfect Supply Manager, Perfect Bid Manager and the Perfect logo are trademarks and/or service marks of Perfect Commerce, Inc. All other company, brand and product names are trademarks or registered trademarks of their respective owners.