High-Tech Internet Exchange Completes $100 Million Funding

Fifteen high-tech industry leaders have completed the $100 million funding of eHITEX, Inc., an independent company that will operate an open Internet marketplace to serve the needs of the high-tech supply-chain community.

The plan to form eHITEX, Inc. was unveiled May 1, 2000 with a charter to help high-tech businesses manage their supply chains more efficiently and effectively to better serve their customers. The eHITEX exchange is expected to begin operations August 1, 2000, and will be open for use by all manufacturers, suppliers and distributors of high-tech consumer and business components, assemblies and finished goods.

eHITEX’s founding companies represent a diverse group of global supply-chain participants and are among the world’s largest high-tech companies. Each founder has expressed its intent to drive significant transaction volumes through the new exchange.

Of the companies that originally expressed interest in supporting the exchange, the following companies signed on as founding members: AMD, Compaq, Gateway, Hitachi, Hewlett-Packard, NEC, Quantum, Samsung Electronics, SCI Systems, Solectron and Western Digital. Founding members also include Agilent Technologies, Canon, Synnex and Tatung.

Business and legal advisors, including Goldman Sachs, TMP International, PriceWaterhouseCoopers, Hewitt and Pillsbury, and Madison & Sutro, are assisting the company in its preparations for delivering services to customers.

A technology development team is also in place, and following the company’s commitment to open standards, has adopted XML as a core component. The team is committed to supporting the RosettaNet consortium, which is focused on supply-chain interface standards. For more information on eHITEX, visit http://www.ehitex.com.

Industry analysts predict that sales of high-tech components through online exchanges will reach $600 billion over the next few years, making this arena one of the world’s largest e-marketplace opportunities. They also rate the high-tech industry among those ‘most ready’ to adopt electronic trading.