CombineNet Awarded U.S. Patent for Algorithms to Analyze and Select Bid Allocations

PITTSBURGH, PA—May 1 , 2006

CombineNet, the leading provider of advanced sourcing technologies, was recently awarded a patent for a methodology to determine award allocations in combinatorial auctions. Awarded by the United States Patent and Trademark Office, patent #7,010,505, CombineNet's second patent for optimization technologies, provides additional intellectual property protection for the company's solutions. CombineNet's industry-leading optimization technologies facilitate Expressive Commerce by providing the ability to analyze unlimited numbers of open-ended proposals to find award allocations that add greater value to an organization.

This patent further demonstrates CombineNet's position as a leader in advanced sourcing technologies," said CombineNet CEO Tony Bonidy. "The analysis power of combinatorial optimization has allowed our customers to realize the benefits of Expressive Commerce in reducing costs and driving innovation and supply chain efficiency through the sourcing process."

Expressive Commerce harnesses the best parts of e-commerce and traditional face-to-face negotiations, enabling buyers and sellers to express their needs and capabilities fully to drive efficiency within the supply chain. The technology behind this patent provides CombineNet's Advanced Sourcing Application Platform (ASAP) with an additional tool for analyzing the complex data sets created by Expressive Bidding to find the best award allocation.

The inventors of the patent are Dr. Craig E. Boutilier of Toronto, Canada, and Dr. Holger H. Hoos of Vancouver, Canada, both of whom are members of CombineNet's Technical Advisory Board. Dr. Boutilier is Professor and Chair of the Department of Computer Science at the University of Toronto, an Associate Editor of the International Journal of Artificial Intelligence Research, and a recipient of the Killam Faculty Research Fellowship for 1997-98. Dr. Hoos is an Associate Professor of Computer Science at the University of British Columbia in Vancouver, and is a renowned authority on combinatorial auctions and stochastic search.

About CombineNet

CombineNet, the advanced sourcing technology company, helps companies achieve the absolute best value and lowest total cost of ownership for goods and services. CombineNet's Advanced Sourcing Application Platform enables companies to engage in Expressive Commerce™, the strategic sourcing initiative that allows buyers and sellers to communicate supply and demand more expressively, collaboratively and strategically. The result is a win-win for both buyer and supplier, where greater innovation and efficiency are driven into the supply chain. CombineNet's ASAP consistently produces 10, 15, even 20 percent greater actual cost savings than other e-sourcing solutions, and has delivered more than 45x ROI for the largest businesses in the world including General Mills, PepsiCo, Procter & Gamble, Siemens and others. For more information, visit www.combinenet.com.

Media Contacts:

Greg Holt
CombineNet Inc.
Director of Marketing
Phone: 412.471.8200
gholt@combinenet.com