Quadrem Achieves Net Cash Flow Positive Fourth Quarter; Grows Revenues 70 Percent, Triples Global Customer Base to 13,000

Quadrem Achieves Net Cash Flow Positive Fourth Quarter; Grows Revenues 70 Percent, Triples Global Customer Base to 13,000

Mining, Oil and Gas, CPG Customers Conduct USD $4 Billion in Business Via E-Marketplace

DALLAS, Feb. 8 /PRNewswire/ -- Quadrem, the global eMarketplace, increased profits in October, November and December of 2004, culminating in the growing company's first cash-flow positive quarter. Additionally in 2004, Quadrem revenues rose 70 percent over the previous year, and the company tripled its global customer base to include more than 13,000 companies.

"Our aggressive growth is a direct result of increased market demand for the services and solutions Quadrem provides," said Mike Efting, Quadrem CEO. "Global 1000 companies recognize the bottom-line ROI that mature e-supply chain technology delivers. They are looking for a proven partner to help them effectively conduct business with their global supply bases. We are exceptionally capable of making their initiatives successful -- across countries, cultures, and multiple ERP and back-end systems."

Last year procurement organizations sent suppliers 1.2 million electronic purchase orders worth more than USD $4 Billion via Quadrem's eMarketplace. Purchase order throughput numbers for December were at a record high and if annualised would mean that more than $USD 7 Billion could flow through Quadrem's eMarketplace in 2005.

"Electronic procurement is delivering measurable value in terms of material and process cost reductions, enhanced compliance rates, and increased spend under management," said Tim Minahan, Aberdeen Group's Senior Vice President and Managing Director of Supply Chain Research. "Best-in-class performers have leveraged external supplier enablement and catalogue content services to third-party providers, such as Quadrem, that can offer greater efficiencies and economies of scale than can be achieved supporting such activities in house."

According to Aberdeen's "The E-procurement Benchmark Report," released last month, enterprises today use e-procurement solutions to manage more requisitions, spend categories and suppliers than ever before. On average, participating enterprises:

* reduced off-contract spending by 64 percent;
* reduced costs by 7.3 percent on spend brought back onto contract;
* reduced requisition-to-order cycles by 66 percent; and
* reduced requisition-to-order costs by 58 percent.



In addition to these benefits for global procurement organizations, Quadrem also offers benefits to suppliers by lowering the cost of doing business, reducing errors associated with fulfilling orders and reducing days sales outstanding -- sometimes to as low as 10 days. 2005 will see Quadrem rolling out additional services and functionality targeted at driving further value for its supplier customer base.

"As our financial performance is proving, Quadrem's business model of providing value on a global basis to both buyers and suppliers is the right approach for making b2b profitable," said Quadrem CFO Gary Ito. "Others in the space have begun to shift and emulate our vision and model, which we've maintained since our launch in 2000. This is additional confirmation that Quadrem is a global leader and a successful growth company worth watching."

About Quadrem

Quadrem (http://www.quadrem.com/ ) provides e-business solutions that connect buyers and suppliers to maximise supply chain efficiencies. Established in 2000, Quadrem has locations in Australia, Brazil, Canada, Chile, France, Mexico, The Netherlands, Peru, Singapore, South Africa, and the United States.


Source: Quadrem

CONTACT: Katherine Kirkpatrick of Quadrem, +1-972-543-8044, or
kkirkpatrick@quadrem.com

Web site: http://www.quadrem.com/


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