LONDON, October 24, 2000 — Property and technology players led by Stanhope, Rotch, Microsoft and Commerce One, Inc. (NASDAQ: CMRC) today signed a non-binding term sheet to form and power a consortium, Asite, providing one European e-marketplace for the construction industry. Definitive agreements are expected to be executed this quarter.
‘Asite’ will be an online exchange set up to share best practice, and enable the construction industry to deliver projects faster, at lower cost and to a higher standard. It will aim to deliver best value as well as lower cost and will help transform the way buildings are designed, procured, built and managed.
Asite has been developed within PremiSys Group plc (AIM: PSS), with the active involvement of property companies Stanhope plc and Rotch Property Group Ltd, and Aurora — a fund for the executives of Kohlberg, Kravis, Roberts & Co. (KKR) and technology companies including Microsoft, Commerce One, Intel, Compaq, Aspect Internet, and Attenda. The alliance between these technology companies was organised with the strategic consultancy of Dynamis Solutions Inc. Asite is currently in discussions with a range of other major industry participants with a view to their becoming investors and committing their construction procurement.
Peter Rogers, director of Stanhope plc and chairman of Asite says, “For years people have been talking about the need to improve the construction industry, and although there are some excellent examples, overall achievement is poor – in terms of efficiency, quality and profitability. The Internet now gives us an opportunity to address many of the industry’s problems by sharing best practice, encouraging standardisation, increasing transparency of information and improving procurement, collaboration, and logistics across the industry.
“Today’s deal will enable us to deliver the best technology tools for the construction industry. Microsoft’s and Commerce One’s unprecedented and exclusive support demonstrates its belief in Asite’s vision and commitment to change the industry,” comments Rogers.
He continues, “In early 2001, we will launch a private pilot test site for a group of leading industry participants. This will be followed by a launch to the rest of the industry in the second quarter of 2001. Leading organisations that are interested in re-shaping our industry are invited to join us and contact us through our website at www.asite.com .”
Steve Ballmer, president and CEO of Microsoft comments, “The combination of Commerce One’s global industry expertise and marketplace solutions with the business agility of the Microsoft .NET Platform will provide Asite.com with increased speed to market, seamless product integration and new business opportunities”.
Mark Dodds, Strategic Business Development Group at Microsoft comments, “Asite represents a fantastic example of a company which is totally focused on operational efficiency and profitability through the delivery of leading edge working practices. Microsoft is committed to delivering both technology and substantial marketing support to Asite. We believe it will become the industry standard for the construction marketplace in the future.”
“We are very pleased to be working with Microsoft to jointly deliver the e-marketplace infrastructure for Asite,” said Mark Hoffman, chairman and CEO Commerce One. “We believe our shared vision along with the best offerings and right capabilities that we are able to offer will enable Asite to become a powerful e-marketplace for the construction industry.”
Asite will serve the entire business-to-business construction industry, and will allow those who are willing to change to benefit. It is the e-commerce initiative launched by AIM listed PremiSys Group plc in March of this year. The construction industry is one of the largest industries in the world with annual turnover in Europe of around 540 billion.
Stanhope plc is a property company specialising in the development of large scale office and mixed-use developments. Its current projects include the refurbishment of the Treasury (Whitehall), and a 1.5m square feet development at Chiswick Park. Stanhope’s directors have been responsible for such developments as Broadgate, in the City of London and Stockley Park, Heathrow.
Rotch Property Group Ltd. is one of the UK’s largest privately owned property companies with a consolidated investment portfolio of over 2.3bn. Rotch utilises leading edge financial technology through the development of innovative debt, equity and risk transfer products.
KKR is one of the world’s leading private investment firms specializing in management buyouts and growth equity investments. KKR’s investment approach is focused on acquiring attractive businesses and working closely with management over the long term to design and implement value creating strategies. KKR currently has two equity funds: a fund organized in 1996 with US$6 billion in committed capital and a European fund that closed in 1999 with approximately US$3 billion of capital.
Dynamis Solutions Inc. is a business-to-business e-commerce consultancy focused on delivering demonstrated value through emerging technologies. It has offices in Detroit, Phoenix, Cincinnati and London.
Aspect Internet Limited, is a leading UK web developer and technical consultancy providing innovative solutions for e-commerce businesses.
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software for personal computers and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device. Microsoft is a registered trademark of Microsoft Corp. in the United States and/or other countries. Other product and company names herein may be trademarks of their respective owners.
About Commerce One
Commerce One (NASDAQ: CMRC) is the leader in global e-commerce solutions for business. Through its products and services, Commerce One creates access to worldwide markets, allowing anyone to buy from anyone, anytime, anywhere. The Commerce One Global Trading Web™
is the world’s largest business-to-business trading community. Comprised of many open e-marketplaces, the Global Trading Web provides unprecedented economies of scale for buying organizations, suppliers, and service providers worldwide. Through its alliance with SAPMarkets, Commerce One enables enterprises and communities of all sizes and industries to efficiently conduct collaborative business on the Internet. Commerce One is located in Pleasanton, Calif., and can be reached by phone at (800) 308-3838 or (925) 520-6000 or via the Internet at www.commerceone.com .
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Forward Looking Statements
The foregoing paragraphs include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements concerning the expected collaboration of Stanhope, Rotch, Microsoft and Commerce One to form and power Asite, the European e-marketplace for the construction industry and the expected benefits of Asite, including the sharing of best practice, increased standardisation, reduced transaction time and costs. These statements are subject to risks and uncertainties. Actual results may differ materially from those described in such statements as a result of a number of factors. These factors include, but are not limited to, the risk that the parties do not execute definitive agreements with respect to the alliance, that the final terms of the agreement differ from those initially planned, the ability of the parties to execute on their plans for the alliance and to continue to support the alliance, the cooperation of the parties, unexpected operational difficulties, actual efficiencies and economies of scale may not be as pronounced as those anticipated by the parties, a general downturn in economic conditions, and intense and increasing competition in the market. For a discussion of these and other risk factors that could affect Commerce One’s business, see “Risk Factors” in Commerce One’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 1999 and its quarterly report on Form 10Q for the quarter ended June 30, 2000.
Commerce One, Many Markets. One Source. Global Trading Web, BuySite, MarketSite, Global Trading Platform, Common Business Library, XML Development Kit, XML Commerce Connector, MarketSite Builder, and SupplyOrder are either trademarks or registered trademarks of Commerce One, Inc. Enterprise Buyer and MarketSet are trademarks of Commerce One, Inc. and SAPMarkets, Inc. All other company, product, and brand names are trademarks of their respective owners.
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