NMMMeeting in Carlton Hotel Tel Aviv, Israel

Gil Grossman, Chief Executive Officer eCredible

1 February 2001

Agenda

• Who is eCredible?• Why Fortune 1000’s Are Going Online

& The Challenges They Face• The Requirements to Transact Online Safely• Partial Solutions to the Problem• The eCredible Answer• eMarketplaces Say it Really Works

Who is eCredible?

• Leader in eFinance Risk Management • Born out of NCM / Swiss Re• Partnered with Leading Technology Providers

– Clarus, IBM, McKinsey & Co., Verisign, Webmethods

• Experienced Management Team– Combined total of over 75 years experience

in finance/credit insurance– Experience with leading global financial

institutions such as ABN-AMRO and McKinsey & Co.

NCM

• No. 2 credit insurer

in US

• Offices in 13 countries

NCM

• No. 2 credit insurer

in US

• Offices in 13 countries

Swiss RE

• AAA-rated

• World’s largest credit reinsurer

• Second largest reinsurer

Swiss RE

• AAA-rated

• World’s largest credit reinsurer

• Second largest reinsurer

•“We need a way to expand internationally while still providing a safe trading environment to our members”

Equipment manufacture

•“We are in the paper business and want to minimize our involvement in credit management as much as possible”

Paper Trader

•“Deals are often held up pending a credit check. In our business, there is a real risk of losing the deal in the meantime.”

Energy exchange

Volume growth &Globalization

Volume growth &Globalization

Outsourcing creditmanagement

Outsourcing creditmanagement

Real-timetransactionapprovals

Real-timetransactionapprovals

Fortune 1000 sellers look for:

B2B players look for complete suite of transaction services

Source: Forrester Research

Forrester research (BtoB market places): “Do you provide these services today?” “And in 2002?”

Today

2002

B2B: When Will It Go Online?

40% of eMarketplaces Currently Employ Manual Processes To Facilitate Transactions

Forrester Research

40% of eMarketplaces Currently Employ Manual Processes To Facilitate Transactions

Forrester Research

The Gold Rush:Why Fortune 1000’s Are Racing to Open Private Exchanges

• Reduce Operational Costs & Increase Efficiency Through Automation

• Boost Revenue by Reaching New Markets (SME, Foreign, Disinter mediation)

• Execute Multiple Transactions at the Same Time

Some 30,000 Private Exchanges are in Various Stages of Development (Gartner Group)

Some 30,000 Private Exchanges are in Various Stages of Development (Gartner Group)

Challenges: Why Offline Systems Won’t Cut it Online

Offline Finance… eFinance needs to be …

Procedures Done ManuallyInternal credit/finance departments

Fully AutomatedNo manual handling or paperwork

Buyers are KnownHave financial history with company

Able to Deal with Unknown Buyers (SMEs, foreign etc.)

Credit/Financing Delays TransactionRequires communications with third party bank/credit provider

Capable of Functioning at Web SpeedCredit/Financing must be built into automated transaction

Transaction Volumes Can’t Grow ExponentiallyLimited by manual handling

Instantly ScalableTechnology to deal with multiple transactions at the same time

Financial Procedures are Not Handled SimultaneouslyVerification, credit checks and dunning are done separately

A One-Click ProcedureIntegration between front and back office systems

The Holy Grail:Moving to Online Automation with Limited Risk

i. Authenticate the Buyer

ii. Check Credit

iii. Guarantee Payment

iv. Automate Dunning & Collection

v. Link to Existing Customer Finance Systems

eFinance Risk Management

Instant Guaranteed Transactions

Category

Goal

Requirements

eFinance Risk Management:Partial Solutions

No transaction capability or payment guarantee

Not fully online, no transaction capability or payment guarantee

Locks up working capital, not ideal for small or multiple transactions

Won’t cover large transactions, high interest rates

Not web-based, not real-time, cumbersome documentation

Requires a company to use their A/R systems

Authentication& Verification

Escrow Services

Stand-alone Systems

Letters of Credit

Credit Check& Rating Services

Trade Cards

Introducing the eCredible Solution

An integrated package of online financial processes that delivers real-time decision making capability, enabling companies to perform Instant Guaranteed Transactions for B2B.

Authentication Credit Checks Guaranteed Payment

Dunning & Collection

Integration

PhoneWeb FaxEmail

Process IntegrationEfficiency, speed, and accuracy through full integration of all Credit Management processes

New buyer entry

Credit selection

AP/AR monitoring

Dunning Collections

No manual handling, thanks to systems links

Eliminates need for internal credit management

System integration

Registration Ordering Invoicing Payment

Market place web server

API’s

Market place back office or payment invoicing engine

- Two weeks to link up with market place

- Facilitated by webMethods

Works With All Interfaces…

Ariba

Art Technology Group

Atlas Commerce

Bowstreet

Broadvision

Cohera

Commerce One

Contivo

Ectone

Global Commerce

Global Logistics Technologies

I2

Interworld Corporation

Rightworks

SAP AG

Siebel Systems, Inc.

Supplyforce.com

Ventro

Viquity

Moai

Microsoft

JD Edwards

Motive Communications

Nightfire Software, Inc.

Nonstop Solutions, Inc.

Noochee Solutions

Nortel Networks

Oracle

Peoplesoft

Portal Software

Red Oak Software

Interwoven, Inc.

Remedy

Savvion

Spaceworks

Supplyworks, Inc.

Versata

Integration is Painless…

• Simple integration to back (AR) and front offices Web-based registration and order/invoice processing

• Fast implementation period Average of two weeks

• Limited manpower neededThree people on each side

• Highly secure communications PKI encrypted credit certificates and triple firewall protectionfor front and back-end integration

                                          

Why eCredible Can Offer a Guaranteed Transaction Process

1. Authenticates the Buyer: Contact is made with individuals requesting certificate and his/her parent company for total certification

2. Runs Detailed Credit Checks: Leverage NCM network of credit information agencies in13 countries

3. Issues eCredible Payment Guarantee™: Financial backing of NCM/Swiss RE which insures $130 billion in B2B transactions annually; AAA-rated balance sheet

4. Automates Dunning & Collection: Web-based credit management system combined with NCM global network of claims offices & collection agencies

5. Links to Existing Customer & Financing Systems: Proprietary software allows eCredible to tap into offline a/r systems and collect information about new buyers, new orders, invoices, payments made, order cancellations, etc.

Capital marketsCapital markets

Financial institutionsFinancial

institutions

Risk carriers Financiers

eCredible integrates eFinance players

BuyersBuyers

SellersSellers

Information providers

Information providers

Underwriters (NCM)

Underwriters (NCM)

Collection agenciesCollection agencies

Other (re)insurers

Other (re)insurers

NCM / Swiss ReNCM /

Swiss Re

Service providers

Customers

eCredible in Action

www.NetworkPlaza.com

Business Model:

B2B supplier of network equipment

Target Market:Large enterprises, ASP, ISP’s, Telco’s

Credit Certificate Users:

Siemens, Sony

Reason for Going Online:

Bypass distributors – go directly to buyers

eCredible in Action

www.Pro-online.nl

Business Model:

B2B supplier of tools

Target Market:

Building trade sector

Credit Certificate Users:Mainly Dutch SMEs

Reason for Going Online:Reach all European buyers

Summary

• B2B needs to move fully online if it’s to fulfill growth predictions

• Fortune 1000s are going online to reach new buyers and lower transaction costs

• Offline financial procedures won’t work online• Instant Guaranteed Transactions are what’s needed• Current eFinance Risk Management solutions offer too

little or too much• eCredible’s technology enables Instant Guaranteed

Transactions that benefit both the buyer and seller

Thank you

www.ecredible.com

Appendix

• How it works

• Benefits

• Competition

• Market segmentation

Everyone Benefits

Buyer Receives:• Access to open account terms with new suppliers

• Control over own credit

• One-click convenience

Seller Receives:• Increased revenue from new buyers

• Assurance of payment

• Lower credit management costs

Competitors

Degree of Integration

Level of Assurance

ACI

@rating

Market segmentation Single Seller Sites Facilitating Marketplaces

Full Service Marketplaces Procurement Sites

SELLERS

BOrder

Invoice

Payment

Exposure information available

Payment information available

B SMP

Order

Invoice

Payment

No Exposure information available

No Payment information available

B S

MPOrder

Invoice

Payment

Order

Payment

SBUYERS

Order

Invoice

Payment

Supplier riskExposure information available

Payment information available