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through Thousands of Suppliers, Will Migrate Web-based System to PurchasePro.com�s e-commerce Engine |
LAS VEGAS/BEVERLY HILLS, Calif - June 1, 2000
-- PurchasePro.com(SM) Inc. (Nasdaq:PPRO), a leading provider of business-to-business
e-commerce services, and Hilton Hotels Corp. (NYSE:HLT), recognized internationally
as a preeminent hospitality company, today announced their intent to establish
a proprietary hospitality procurement network for Hilton�s family of branded
hotels and to establish the industry�s largest purchasing exchange.
The network is expected to launch in early summer 2000 and be fully deployed by year-end 2000 and will be available to Hilton�s hotel system, which features such well-known and highly regarded brands as Hilton, Doubletree, Embassy Suites, Hampton Inn, Hampton Inn & Suites, Harrison Conference Centers, Hilton Garden Inn, Homewood Suites by Hilton, Red Lion Hotels & Inns and Conrad International. Hilton, which three years ago implemented an electronic procurement system, currently buys in excess of approximately $1.5 billion per year in goods and services through thousands of suppliers. These transactions will migrate to an online Web-based system powered by PurchasePro.com�s e-commerce engine. Hilton anticipates that significant purchasing and operational benefits will be realized through this agreement, representing another step in the successful achievement of synergies related to Hilton�s acquisition of Promus Hotel Corp. PurchasePro.com currently processes millions of dollars in bid and purchase transactions from the hospitality industry over its network every month. In addition, Hilton and PurchasePro.com announced the creation of a hospitality exchange that will combine the purchasing power of Hilton�s hotels with that of other hospitality companies that will have the opportunity to participate. With Hilton as the �anchor tenant,� the exchange will leverage relationships with the thousands of existing hotels having access to the PurchasePro.com network, making this the largest exchange in the industry. The hospitality exchange will link thousands of member buyers and suppliers in the very fragmented hospitality industry to create significant procurement and sales cost savings, as well as generate new sales opportunities for suppliers. Members will enjoy preferred pricing through the bulk purchasing power of the exchange and also will have the ability to create a customized experience for users featuring their own branded look and feel. Other advantages to the hospitality exchange created by Hilton and PurchasePro.com include:
�Our initiative with PurchasePro.com is designed to further improve
our company�s efficiencies and profitability, which translates into value
for our shareholders, franchisees and owners, and will bring us an even
greater competitive advantage.�
�With thousands of hotels on our network, we have set the industry standard for hospitality procurement. Creating the hospitality exchange with an industry leader like Hilton is a natural evolution for PurchasePro, bringing our vertical expertise to bear in making e-procurement even more streamlined for hospitality businesses.� Gartner Group, a leading Internet research firm, has projected that the number of private e-marketplaces could soon number more than 7,500. PurchasePro.com is quickly aligning itself to meet this private marketplace demand with a complete suite of products that are rapidly deployed and highly scalable, meeting the procurement needs of many types of businesses and industries. This news release includes forward-looking statements that are subject to a number of risks and uncertainties, including the risks and uncertainties associated with rapidly changing technologies such as the Internet, the risks of technology development and the risks of competition. |
PurchasePro.com Inc. Anthony Timmons, 702/316-7000 [email protected] Hilton Hotels Corp.
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