SupplySolution Announces $28.5 Million in Expansion Funding

SOUTHFIELD, Mich., March 13 -- SupplySolution, Inc., the leading provider of supply chain execution applications for manufacturing, distribution, exchange, and supplier organizations, today announced that it has raised $28.5 million in expansion financing. Previous investors led the round, including Enterprise Partners, The Sprout Group, the venture affiliate of Credit Suisse First Boston (formerly Donaldson Lufkin and Jenrette), and Sigma Partners.

SupplySolution will invest the capital to augment its product development activities, manage a formal channel partnership program, and expand its marketing outreach program to Europe. This brings the total investment in SupplySolution to more than $55.7 million.

``SupplySolution is a unique success story in an unfavorable economy,'' said Tom Clancy, managing director, Enterprise Partners. ``We have tremendous faith that the company's business team will continue to build upon its market leadership. At its core, the value proposition of the i-Supply(TM) Service and its related technology lies in the dramatic reduction of the costs and time associated with inventory management. We believe this technology will continue its rapid adoption in the automotive supply chain as well as related manufacturing supply chains.''

SupplySolution is recognized as an innovator in the supply chain execution management space -- a market that is predicted to reach ``$1.1 billion in total revenue by 2005,'' according to AMR Research (The Supplier Management Applications Report, 2000-2005). The company's premier technology, the i- Supply Service, is the most widely used direct material fulfillment application in the automotive supply chain. It is currently in use within more than 2,000 manufacturing organizations that includes 38 percent of the top 150 North American automotive suppliers. i-Supply has been the exclusive fulfillment application available through Covisint -- the noted automotive industry exchange -- since March 2001.

Within eight weeks of customer implementation, i-Supply has proven itself capable of driving significant cost savings and process improvements within supply chains. SupplySolution customers have seen results including: a 30%- 70% reduction in inventory, a 50%-90% reduction in premium freight costs and 40%-80% reduction in administrative tasks.

Chris Moritz, CEO of SupplySolution said, ``We are pleased to have such high caliber investors extend their relationship with us in this difficult funding environment. They have provided us with tremendous market insight and counsel over the past year. We believe their confidence in SupplySolution is due to the powerful customer adoption of i-Supply, as well as our business model, management team and continued achievement of business objectives.''

About SupplySolution

SupplySolution is a leading supply-chain execution company, delivering value to manufacturers, distributors, exchanges and suppliers through the

implementation of collaborative supply chain applications, including the i- Supply Service, i-GetIt and the SupplySolution Global Infrastructure. Today, i-Supply is one of the most widely used real-time, direct-material fulfillment applications in the automotive industry, in operation at over 2,000 organizations. In March 2001, SupplySolution signed an exclusive provider agreement with Covisint, providing automotive users availability to i- Supply(TM), co-branded as Covisint Fulfillment, and all related infrastructure technologies, through the Covisint exchange.

SupplySolution was recently named Top 100 Emerging Company for 2002 by Computerworld Magazine, and as a finalist in the 2002 Automotive News PACE Award for automotive industry technology innovation. The company's technology headquarters are located in Santa Barbara, California, and its sales and service headquarters are located in Southfield, Michigan. The company's European headquarters are in Stuttgart, Germany. For more information about SupplySolution, visit www.supplysolution.com .

Note: i-Supply(TM) Service is a trademark of SupplySolution, Inc.