Microsoft and Commerce One Form Strategic Relationship to Deliver Integrated Solutions for Business-to-Business Electronic Commerce

NEW YORK, Dec. 10, 1997 — Microsoft Corp., the worldwide leader in software for personal computers, and Commerce One Inc., a leading provider of real-time interbusiness electronic commerce and supplier management solutions, today announced at Internet World ’97 that they have formed a strategic relationship to deliver integrated solutions for enterprise electronic commerce. Commerce One will offer applications based on Microsoft® Site Server, a comprehensive Web site environment and Web-based commerce platform for the enhancement, deployment and advanced management of Web-enabled electronic commerce solutions. In a separate announcement today, Commerce One and SAP announced a partnership to combine SAP R/3 and Commerce One’s Electronic Procurement Solutions for extended supply chain management capabilities. (See separate Commerce One and SAP joint announcement of Dec. 10, 1997.)

“Commerce One and Microsoft share the same vision of real-time electronic commerce applications for the enterprise on robust, highly scalable, standards-based platforms,” said Mark Hoffman, president and CEO of Commerce One. “The Windows NT® operating system and Site Server together constitute the powerful platform that our electronic commerce applications require and that the market demands. As a result of this relationship, customers will reap meaningful and demonstrable benefits, as the return on investment of our solution is enhanced by the low cost of ownership of Microsoft technologies.”

Commerce One will integrate C1 BuySite, its electronic procurement application, and C1 REOS, its transaction engine, with Microsoft Site Server. Central to the integration with Site Server is the Commerce Interchange Pipeline (CIP), a new technology that is scheduled to be part of a future release of Site Server Enterprise Edition. The Commerce Interchange Pipeline provides developers with a simple system for enabling application-to-application interchange based on the Component Object Model (COM) and provides access to functions that encrypt, digitally sign and audit transactions for transmission over the Internet in multiple formats. CIP also provides interfaces to allow for mapping to traditional EDI formats and transport over x.25 VAN networks.

“We are delighted about our strategic relationship with Commerce One because of its powerful applications, compelling technology and market vision,” said Anthony Bay, general manager of the Internet server group at Microsoft. “The combination of Microsoft and Commerce One technologies will offer customers integrated real-time business-to-business electronic commerce solutions for the enterprise. Additional support and integration with the SAP R/3 environment and other ERP applications adds real value to customers deploying mission-critical components in a distributed information technology environment.”

Using the COM framework helps developers efficiently create and integrate line-of-business software applications. With this strategy, Microsoft and Commerce One will work to evolve the Windows® family of operating systems into an object-based technology platform to make it easier for businesses to take advantage of the World Wide Web. Co-marketing efforts will address how Microsoft and Commerce One’s integrated solutions meet the specific needs and issues of key customer groups, including large enterprises, chief financial officers, and chief information officers and MIS groups. Building on Site Server’s ease of use, interoperability and comprehensive infrastructure, Microsoft and Commerce One are working to achieve robust, reliable electronic commerce solutions for the enterprise.

“The market will benefit greatly from our relationship with Commerce One, as powerful enterprise electronic commerce applications can now be implemented on robust, commodity platforms,” said Tim Kraus, industry manager for tools and infrastructure at Microsoft. “Commerce One understands the market and is the first company to deliver value to large enterprises by taking advantage of Microsoft technologies. Microsoft and Commerce One will continue to work together to integrate, extend and drive opportunity for electronic commerce solutions for the enterprise.”

“Both Commerce One and Microsoft are partners of SAP, and are important to SAP’s electronic commerce strategy,” said Heinz Rogenkemper, executive vice president, development at SAP. Commerce One’s technology, Microsoft’s platforms and SAP R/3 applications are complementary solutions for enterprises requiring powerful electronic commerce solutions.”

“Enterprises of all sizes are demanding standards-based electronic commerce platforms and solutions,” said Chuck Donchess, vice president of marketing and business development for Commerce One. “Microsoft delivers the robust and scalable platforms on which Commerce One offers powerful applications for electronic commerce, purchasing and supplier management. Our strategic relationship with Microsoft ensures that these integrated solutions will continue to develop and meet the needs of enterprise electronic commerce.”

About Commerce One

Commerce One Inc. develops, licenses and markets the Commerce Chain Solution, the industry’s only real-time, electronic procurement and supplier management solution for

interbusiness transactions. The Commerce Chain Suite of products includes C1 BuySite, a multisupplier catalog server; C1 SupplySite, a multimedia catalog; and C1 REOS Transaction Server, a real-time electronic online transaction system. The Commerce Chain Suite provides procurement and selling organizations with the opportunity to reduce costs, increase revenue and streamline operational processes to maximize profitability. Commerce One is a privately held company based in Walnut Creek, Calif. Mark Hoffman, co-founder and former CEO of Sybase, serves as Commerce One’s president and CEO and is supported by an industry-leading management team of senior executives from top technology companies. Commerce One can be reached at (510) 941-6000 or ( .

About Microsoft

Founded in 1975, Microsoft (NASDAQ
) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft, Windows NT and Windows are either registered trademarks or trademarks of Microsoft Corp. in the U.S. and/or other countries.

Commerce One is a registered trademark and Commerce Chain, C1 BuySite, C1 SupplySite and C1 REOS are trademarks of Commerce One, Inc.

Other product and company names herein may be trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages.

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