VERT_supplier performance survey_3-8-06

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					PRESS RELEASE

               Media Contact:                        Investor Relations Contact:
                    Nevin Reilly                          Al Palombo
                    Sloane & Company                      Cameron Associates
                    Ph: 212-446-1893,                     Ph: 212-245-8800 x209,
                    nreilly@sloanepr.com                  al@cameronassoc.com

  VERTICALNET SURVEY REVEALS SUPPLIER PERFORMANCE IS TOP OF MIND
       FOR BOTH LARGE ENTERPRISES AND MID MARKET COMPANIES

   More than 300 Sourcing Professionals Join Verticalnet Webcast on Supplier Performance
                                   Management (SPM)
             Related Survey Uncovers Overwhelming Interest in the Mid Market

MALVERN, Pa.-- March 8, 2006--Verticalnet, Inc. (Nasdaq:VERT), a leading provider of on-
demand supply management solutions, announced today that it recently conducted an online survey
following a Webcast on Supplier Performance Management. The Webcast brought together industry
experts from The Aberdeen Group, Verticalnet's partner Archstone Consulting, and Verticalnet
customer Delta Air Lines to discuss the benefits and realities of supplier performance management.
The online survey of the participants was conducted immediately after the Webcast and explored
opinions, interest and roadblocks to implementing supplier performance.

Survey Says: High Interest in Supplier Performance Among All Sizes of Companies

The online survey of participants in the Supplier Performance Webcast yielded interesting and
surprising results. More than half the participants had annual spending below $1 billion and 70% had
annual spending below $5 billion. Although the majority of participants were mid-sized
organizations, more than half of the respondents were actively reviewing SPM solutions with a large
percentage looking to initiate a program within the next 12 months. Supplier Performance
Management has long been considered as an area of improvement for only the very largest
organizations with spend above $10 billion and has traditionally been one of the last areas of
consideration in the sourcing and procurement process. Those responding to the online survey
indicated that the lack of automated tools for Supplier Performance Management within their
organization is the number one challenge associated with initiating a Supplier Performance
Management program.

Delta Airlines Sees SPM as the Next Step in Creating Incremental Value

According to Bob Currey, the General Manager of Sourcing Innovation and Supplier Management
for Delta Air Lines, and one of the key speakers at the Webcast, "Supplier Performance
Management is a key next step in creating incremental value for organizations of all sizes and
especially for Delta Air Lines." Delta has more than $9 billion in spend across more than 6,000
suppliers. Currey continued, "Since 2000, we have realized more than $500 million in cost savings
from our strategic sourcing and SPM efforts for the company." Currey concludes, "We have had
very good success with the Verticalnet XE suite of products and view the Verticalnet suite and
supplier scorecards as key components of our success in Supplier Performance Management at
Delta."

"Clearly there is significant interest and need among companies of all sizes to get a better handle on
supplier performance," commented Nathanael V. Lentz, CEO of Verticalnet. "To date, the mid
market in particular has been an underserved market, but the advent of on-demand technology will
allow this preliminary interest to be quickly acted upon. The sophistication of procurement
organizations, both large and small, is on the rise and the interest in supplier performance is a strong
indicator that procurement professionals are moving away from an emphasis on price focused
decisions and are moving toward a total cost of ownership perspective when it comes to managing
increasingly strategic supplier relationships." Lentz concludes, "Supplier performance management
is a critical consideration in evaluating the true total cost of ownership for supplier relationships."
Supplier Performance Management is the process of measuring, analyzing, and managing supplier
performance to improve quality, reduce costs, mitigate supply risk, and drive continuous
improvement in the value of strategic supplier relationships. Supplier performance has never been
more crucial to business success than it is today. The high participation from both large enterprises
and mid market companies demonstrated the level of interest in the supplier performance topic.
More than 300 attended the two-part series including a broad set of US and European entities.

An archive of the Supplier Performance Webcast can be viewed by registering at the link below:
http://www.verticalnet.com/elibrary/downloads.asp

About Verticalnet

Verticalnet is a leading provider of on-demand supply management solutions that enable companies
to identify and realize sustained value across the supply management lifecycle. Going beyond
traditional spend management and sourcing approaches, Verticalnet's solutions provide the visibility,
insight and process control required to maximize the sustained value realization from supply
management. Large enough to help customers attain supply management success worldwide, yet
nimble enough to provide individual attention and remain focused on customer priorities, Verticalnet
is helping leading Global 2000 companies and mid-market enterprises move their supply
management efforts to the next level through an optimal blend of software, comprehensive services,
and deep category knowledge and domain expertise.

The Verticalnet XE Supply Management suite is available on-demand and includes:

      Verticalnet® Program Manager -- lowers the total cost of ownership and improves
       productivity through sound and re-usable program and process management
      Verticalnet® Spend Manager -- a fast, intelligent, and repeatable solution for identifying,
       evaluating, and quantifying enterprise-wide sourcing opportunities while measuring
       compliance
      Verticalnet® Negotiation Manager -- accelerates and improves negotiated savings through
       online auctions and eRFX events
      Verticalnet® Procurement Manager -- simplifies and improves control over the procurement
       process to help companies realize the maximum cost savings identified through supplier
       sourcing and negotiation
      Verticalnet® Contract Manager -- provides real-time insights into contract obligations,
       exposures, expirations, changes and renewals delivering greater control, reducing costly
       oversights and minimizing supplier risk
      Verticalnet® Performance Manager -- enables companies to effectively track and manage
       supplier performance, contract compliance and identify potential areas of supplier risk

To learn more, please visit us at www.verticalnet.com.

Verticalnet is a registered trademark or a trademark in the United States and other countries of Vert
Tech LLC

				
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