MALVERN, Pa., June 29, 2004--Verticalnet, Inc. (Nasdaq:VERT), a leading provider of Strategic Sourcing and Supply Management solutions today announced the release of Verticalnet(R) Supply Management(TM) 5.1. Verticalnet Supply Management 5.1 is available today and is already live at multiple customers. With Version 5.1, Verticalnet continues to lead the marketplace transition from a focus on first generation sourcing and procurement process automation tools to the next generation of solutions that enable organizations to implement, realize, and monitor actual savings from their supply management initiatives.

"Procurement and finance professionals have come to recognize that eSourcing savings are not achieved just by completing a reverse auction or by signing a new contract," said Nathanael V. Lentz, President and CEO of Verticalnet. "Savings are only achieved after product is bought under new contracts, actual spend savings are realized and documented, and suppliers achieve expected performance levels. Verticalnet Spend Analysis was one of the first solutions on the market that provided repeatable visibility into spending across multiple divisions, locations, and systems," Lentz continued. "With Verticalnet Supply Management 5.1, our customers move beyond spend data, gaining visibility and insight across the full Supply Management lifecycle."

Using the application modules in Verticalnet Supply Management 5.1, sourcing organizations can now improve their ability to realize and monitor actual cost savings through effective implementation and execution of contracts and management of supplier performance across the enterprise. Specific enhancements to Verticalnet Supply Management 5.1 include:

-- Contract Compliance capabilities that help companies answer key questions including: Which locations/organizations are buying from preferred suppliers? Are we leveraging best contracted items? Are we meeting our diversity spend goals?

-- Contract Audit capabilities that identify supplier pricing and rebate errors

-- Enhanced supplier performance management capabilities that help companies proactively monitor and manage supplier performance

-- Savings Tracking capabilities that enable organizations to monitor realized savings by contract, division, and location - in addition to monitoring and identifying lost savings opportunities due to non-compliance

-- Introduction of the Sourcing Analysis module that enables companies to proactively manage and monitor its entire sourcing program.

Verticalnet Supply Management 5.1 also provides sourcing, procurement, and finance professionals at all organizational levels with the ability to proactively monitor and manage their area(s) of responsibility. Preconfigured dashboards provide supply management professionals with a virtual cockpit, providing users at all levels of the organization with fingertip access to the right information to make better decisions. Web-enabled dashboards allow all users to continually monitor their critical information, and provide the starting point for analyses to drive sourcing savings, compliance improvement, and contract and supplier performance monitoring. Professionals using Verticalnet Supply Management 5.1 can tailor their dashboards to provide ongoing insight into these critical areas, enabling them to quickly take action to remedy underperforming suppliers or underutilized contracts.

Advanced Bid Optimization functionality has been built into the version 5.1 release of Verticalnet's self-service eRFX and Reverse Auction modules. Designed for sourcing professionals, version 5.1 enables Verticalnet clients to set business constraints by selecting from business terms written in plain English. As opposed to other optimization tools that are often too complex for the ordinary user, Verticalnet Bid Optimization enables a broad set of users to test sourcing scenarios with real-world business constraints. As a result, users of version 5.1 are easily able to model complicated award scenarios that reduce costs, while improving supplier performance and supply risk.

"Verticalnet Supply Management 5.1 is a major step forward in our efforts to introduce advanced capabilities across our end-to-end supply management footprint," Lentz continued. "As companies move beyond simple reverse auction tools to solutions that enable the complete supply management lifecycle, they require expert solutions that include advanced analytics to support their decision making processes. Verticalnet Supply Management 5.1 is focused on allowing supply management professionals to fully realize the value of their sourcing efforts, with a focus on opportunity assessment, contract compliance, and sourcing program performance."

Companies interested in learning more about Verticalnet Supply Management 5.1 can visit the Verticalnet website at www.verticalnet.com, contact the company via email at info@verticalnet.com, or via phone at 610-240-0600.

About Verticalnet

Verticalnet is a leading provider of supply management solutions that enable procurement organizations to identify and achieve new levels of savings and efficiencies. Going beyond traditional spend management and sourcing approaches, Verticalnet's industry leading spend analysis and category-specific software and service offerings provide a knowledge-driven foundation for our end-to-end supply management footprint. Large enough to help customers attain supply management success worldwide, yet nimble enough to take a flexible, tailored approach to individual challenges, Verticalnet has helped numerous FORTUNE 500(TM) companies take their supply management efforts to the next level through an optimal blend of software, services, and category specific knowledge and expertise. To learn more, please visit us at www.verticalnet.com.

Verticalnet is a registered trademark or a trademark in the United States and other countries of Vert Tech LLC. Verticalnet Supply Management is a trademark or service mark of Vert Tech LLC. All other trademarks are property of their respective owners.

Verticalnet, Inc.
David Kaplan, 610-695-2310
davidkaplan@verticalnet.com