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Global eXchange Services and International Foundation for Automatic Identification Accelerate Development of Retail Supply Chain in Russian Federation

GAITHERSBURG, Md.--Aug. 3, 20040, 2004--

  Russia Added to Growing Roster of GXS Data Pools in Australia, Canada, Korea, New Zealand, United Kingdom and United States  



Global eXchange Services (GXS) today announced a joint initiative with the International Foundation for Automatic Identification (IFAI) to develop and manage Russia's country data pool, RusDP1(R). Part of a long-term agreement between GXS and IFAI, RusDP1, a multi-industry electronic product catalog and data synchronization service, will enable Russian retailers, manufacturers and suppliers to quickly and easily trade with partners worldwide. Once live, the Russian data pool will become part of a growing global network of synchronized data, enabling easy access to trading partners.

The world's largest retailers, including Metro AG, Tesco and Wal-Mart, have mandated that all consumer goods manufacturers send item data electronically to data pools in order to ensure that accurately described and consistent product information is synchronized between trading partners. In the retail industry, data inaccuracies contribute to increased expenses due to errors in purchase orders, invoices and logistics systems, as well as shipment returns. Country data pools serve as a single source for the secure exchange of accurate and updated product information, allowing all supply chain partners to share and synchronize common standardized data. As a result, manufacturers are able to improve catalog maintenance, order management and fulfilment, while reducing the time it takes for goods to get to market.

"With the continuing maturity of data pool technology, led by improvements in interoperability and industry standards, the promise is being fulfilled of operational savings from wider data synchronization efforts that can take advantage of early supplier investments in the technology," according to The AMR Research Alert, "Now Is the Time To Make Data Synchronization Real in Retail," August 5, 2004.

RusDP1 will be the first data pool in the Russian Federation to comply with global supply chain standards, created by a broad EAN initiative involving over one million member companies in 133 countries.

By leveraging its expertise in developing data pools within Australia, Canada, Korea, New Zealand, the United Kingdom and the United States, GXS will enable IFAI to take full advantage of its involvement with the Global Data Synchronization (GDS) initiative, leveraging the Global Data Synchronization Network (GDSN), the standards which all future supply chain technologies will be built upon. With the introduction of its country data pool, Russian manufacturers and suppliers will be well-positioned to leverage advanced technologies such as RFID and Collaborative Planning, Forecasting and Replenishment (CPFR) systems in order to remain competitive in the global market.

"Cooperation with GXS, one of the world's leaders in creating global electronic communities, marks a significant step forward for IFAI," said IFAI executive director Sergey Surkov. "We regard this as an extremely important and timely project that can help resolve a large number of supply chain management issues and will introduce a much-needed spirit of cooperation in the relationships between manufacturers and retailers."

"Providing a proven framework to enable global data pools to facilitate data synchronization within their communities is a key aspect of our overall strategy," said Larry Rushing, GXS director of product management for data synchronization and product information management. "The Global Data Synchronization initiative is opening up a wealth of opportunities for local and global retail markets alike, and GXS continues to make this vision a reality."

UNISCAN/EAN Russia, an industry organization focused on data identification and transmission within the Russian Federation, is comprised of more than 10,000 Russian companies, which are poised to leverage the benefits of the Russian data pool.

According to George Nasonov, deputy general director of UNISCAN, "Taking into account the extensive international experience GXS has in developing country data pools, we have no doubt that the joint initiative of GXS and IFAI will enable our members - leading Russian and foreign companies - to find new customers, suppliers and manufacturers, reduce expenses caused by inaccurate product information and participate in the global exchange of information."

Nasonov continued, "The data pool will not only connect manufacturers, suppliers and vendors, but will also help develop the retail industry. GDS is integral to Russian business if companies intend to use more advanced supply chain technologies in the future."

About UNISCAN/EAN Russia

UNISCAN/EAN Russia is the Member Organization of EAN International in the Russian Federation and as such is responsible for administering the global system of EAN.UCC standards in Russia. These are open, global, multi-sectoral information standards, based on best business practices. By driving their implementation, EAN International and its Member Organizations play a leading role in the supply and demand chain management improvement worldwide. For more information please visit: www.ean.ru , www.ean-int.org.

About IFAI

The International Foundation for Automatic Identification is a Moscow-based international not-for-profit organization established in December 2000 to promote Automatic Identification and Data Capture (AIDC) technologies in Russia, CIS and Baltic countries.

About Global eXchange Services

Global eXchange Services (GXS), a leading worldwide provider of B2B integration, synchronization and collaboration solutions to more than half the Fortune 500, operates a highly-reliable, secure global network services platform. GXS offers an extensive range of solutions to help more than 30,000 businesses, both large and small, connect with their partners, synchronize product information, optimize inventory levels and demand forecasts, and accelerate the execution of their supply chains. GXS is headquartered in Gaithersburg, Md., with sales and development offices throughout the U.S., Europe and Asia-Pacific. For more information visit our Web site at www.gxs.com.

All products and services mentioned are trademarks of their respective companies.

Caution Concerning Forward-Looking Statements

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. These factors include technological developments, customer demand, trading partner participation and network availability.