The acquisition will provide PurchasePro with immediate access to Stratton Warren’s customer base that purchases more than $5 billion each year from an estimated 50,000 suppliers. Moreover, Stratton Warren’s solution will enable PurchasePro to increase transactions and revenue in the company’s other public and private marketplaces, further enhancing PurchasePro’s recurring revenue business model.

PurchasePro will pay less than $15 million in stock and cash and expects Stratton Warren’s financial results to be accretive, excluding non-cash charges. Completion of the acquisition is subject to customary conditions. The parties expect to close the transaction prior to year-end.

Stratton Warren Inc. currently has a banner list of top tier customers in a wide variety of vertical markets, including government, foodservice, entertainment, resorts, amusement parks and hospitality such as Opryland, Fort Jackson Army Base, Snowbird Ski and Summer Resort, MGM Mirage, The Broadmoor, Delaware Park Race Track, The Greenbrier, Harrah’s Entertainment Inc., Mandalay Bay Group Resort, Park Place Entertainment, Pinehurst Resort and Country Club and Vail Ski Resorts.

“Stratton Warren’s solution gives PurchasePro the ability to offer its member base a complete, end-to-end solution, enabling companies to accomplish all of their procurement needs exclusively on the PurchasePro system,” said Christopher P. Carton, PurchasePro’s president and chief operating officer.
“The acquisition of Stratton Warren gives us access to more than $5 billion in purchasing transactions and adds a powerful customer base to our company’s global marketplace, which already contains industry leaders such as AOL, Gateway, Sprint and Computer Associates.”

PurchasePro will make Stratton Warren’s solution available to its tens of thousands of members in the company’s global marketplace—the industry’s only complete buyside/sellside e-commerce solution.
 

“The acquisition of Stratton Warren enables PurchasePro to incorporate best of breed inventory management and purchasing solutions into our e-commerce products,” said Geoff Layne, executive vice president of PurchasePro. “The integration of Stratton Warren’s solution will allow us to expand our company’s leading position in the hospitality and foodservice industries to other verticals and horizontals, which we believe will greatly increase the number of transactions on our system.” “We’re thrilled to become a member of PurchasePro’s array of first class, e-commerce products and services,” said Ronald M. Dressin, chief executive officer of Stratton Warren. “PurchasePro’s acquisition of our company allows us to be part of what we think is the industry’s premiere e-commerce solution.” Stratton Warren Inc. is recognized as the leading developer of procurement solutions for the hospitality industry. Stratton Warren’s Hospitality Materials Management System (MMS400) provides full procurement and inventory management functionality for all hospitality operations. Stratton Warren customers process an estimated $5 billion in purchasing volume each year. Stratton Warren provides a turnkey software solution for procurement and inventory operations by applying any of its four base modules: Inventory, Purchasing, Recipe/Menu Engineeringand Retail (merchandise); each with specific functionality geared to the hospitality industry. Stratton Warren also offers its solution through an application service provider (ASP) model, allowing state of the art functionality to be affordably accessed from anywhere in the world. Stratton Warren serves more than 160 properties, including hotel/casinos, resorts, racetracks, theme parks, restaurant chains and convention hotel properties worldwide.  PurchasePro Inc. is a leading enabler of business-to-business e-commerce

Networld Exchange Named  a Preferred Supplier On PurchasePro Global Marketplace SAN DIEGO - Oct. 30, 2000--Networld Exchange Inc., a leader in business-to-business e-commerce service for foodservice and hospitality suppliers, today announced that the company has been named a preferred supplier on the PurchasePro global marketplace. PurchasePro named Networld Exchange as a preferred integration solutions distributor for suppliers in the PurchasePro global marketplace that encompasses more than 30,000 businesses and 240 private marketplaces. “PurchasePro’s ability to integrate its e-commerce applications with companies throughout the world is critical to increasing the liquidity across our global marketplaces,” said Matt Yost, vice president of strategic development for PurchasePro. “Our company will offer Networld’s integration solution to our suppliers, extending both the features and functions of our current e-commerce service.” Networld Exchange’s rapid integration expertise offers suppliers the ability to decrease order cycle times, while assuring buyers the most current ordering data. Networld will extend PurchasePro’s supply-side functions even further, by adding advanced customer relationship management, marketing and sales representative analysis tools to real-time procurement functions. “Suppliers want to maintain close ties to their customers. Our integration technology allows suppliers to link directly to suppliers and buyers back-office systems through the Internet. Integration takes customers beyond Web ordering, into collaborative e-business,” said John Schachat, chief technology officer of Networld Exchange. A supplier attempting to architect a full-featured e-commerce environment similar to what Networld Exchange has created takes years of development and test cycles with costs ranging in the multi-millions. “We have incorporated state-of-the-art functions into a service that has been tested and proven in the market,” said Schachat. “We can offer these features to suppliers for a fraction of the real world expense, decreasing the deployment time down to days rather than months.”

for businesses of all sizes and powers approximately 240 private-labeled marketplaces encompassing more than 30,000 businesses. 

Strategic alliances with industry leaders such as America Online, Computer Associates, Sprint Corp.  and Hilton are instrumental to building the company’s customer base of large, midsized and small businesses. 

This news release includes forward-looking statements which are subject to the “Safe Harbor” created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.