China Launching Online Exchange for Electronics Industry

Global eXchange Services, ChinaECNet ally to establish e-Hub to improve information exchange among OEMs

Shanghai, China — March 18, 2004 — Business Commerce (HK) Limited, the Hong Kong subsidiary of B2B connectivity specialist Global eXchange Services (GXS), and ChinaECNet have inked an agreement to jointly develop and establish a B2B electronic transaction exchange to improve information exchange between original equipment manufacturers (OEMs) in China's $80 billion electronics industry.

Dubbed "e-Hub," the exchange will be the country's most ambitious logistics and procurement exchange platform, and it will connect Chinese electronics OEMs with other China-based manufacturers, as well as with international customers and suppliers, employing RosettaNet and XML standards-based technologies.

China is the world's third largest manufacturer of electronics and IT products, and the largest producer of program-controlled telephone switches, mobile phone handsets and color televisions and monitors. Due to increasing globalization, the electronics industry has been experiencing a disaggregation of the supply chain.

In response, companies are integrating their supply chain systems and digitizing their inter-enterprise processes in order to increase efficiencies, reduce costs and create competitive advantage.

Automating procurement and supply chain processes, ChinaECNet and Global eXchange Services will jointly establish the e-Hub as a supply chain digitization platform for China's electronics industry. e-Hub will provide manufacturers and buyers with a standards-based transaction exchange designed to help manufacturers source, purchase and track inventory more effectively with the goals of increasing supply chain efficiencies, reducing expenses and expediting time-to-market for new products.

"We anticipate that the e-Hub will be China's premier procurement and logistic data exchange platform to connect Chinese electronics OEMs with other Chinese manufacturers of all sizes, and as importantly, with international customers and suppliers," said Wayne Chao, chairman and CEO of ChinaECNet. "This will greatly help the Chinese OEM market improve material management efficiency and overcome the challenges caused by the rapid globalization of the Chinese electronics industry."

"China is a world leader in electronics and IT products manufacturing," said GXS CEO Gary Greenfield. "Our company is especially proud of our collaboration with ChinaECNet to help the country's electronics industry digitize its procurement and supply chain processes. We believe the e-Hub will serve as a critical trading exchange for customers and suppliers of all sizes from around the world seeking to conduct business with China's OEM and electronics industry."

Under the agreement, Global eXchange Services will supply and service the B2B process integration solutions needed for the operation of the e-Hub, which is based on such technology and standards as RosettaNet and XML, to provide interoperability with other trading communities worldwide.

Celebrated at a signing ceremony involving the vice minister of China's Ministry of Information Industry (MII), Gou Zhongwen, the partnership was announced at the China Supply Chain and Material Information Management Conference, being held in conjunction with China's top electronics manufacturing trade fair, electronicaChina 2004.

ChinaECNet is a joint venture between the China Centre for Industry Information Development (under the Ministry of Information Industry), Avnet and Global Techmart. GXS operates one of the largest B2B e-commerce networks in the world, managing 1 billion transactions annually for more than 100,000 trading partners. The company provides software, hosted solutions and consulting services to streamline supply chain operations for organizations.

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