CNF to Transform Global Procurement

New Orleans, LA., February 17, 2003 -- IBM and Ketera Technologies today announced that CNF Inc. (NYSE: CNF), a leading global supply chain services company, has selected the companies to provide on-demand procurement services. Ketera, a spend management leader founded by American Express, will provide the technology and IBM will host and deliver the procurement service on demand.

On-demand procurement services enable organizations to move their purchasing processes to Internet-based systems, automating the buying cycle from requisition through payment stages. With IBM e-business hosting services, CNF expects to be up and running on the Ketera procurement solution in just 45 days.

CNF Inc., a market leader in the supply chain management industry, is a $4.8 billion global enterprise with fast-growing, dynamic businesses and a long-established history of supply chain expertise. CNF will begin working with the companies immediately, using Ketera Spend Analysis software to identify areas where it can better reduce and control costs, as well as identify priorities for supplier enablement.

Key aspects of today's agreement include:

* Transitioning purchasing across the organization to the on-demand service.

* Moving to an automated payment and reconciliation process through use of the American Express Corporate Purchasing Card solution.

* Offering procurement as a shared service to CNF companies Con-Way Transportation Services and Menlo Worldwide. More than 1,000 users will be using the service after just 90 days.

* Enabling core suppliers of maintenance, repair and operation (MRO) materials, office supplies, materials handling products and print services. Ten suppliers will be enabled in the first 90 days.

* Use of Ketera Spend Analysis to provide an up-front understanding of CNF's corporate spending and to identify opportunities for controlling and reducing costs.

"We recognized an opportunity to enhance our purchasing process with state-of-the-art technology," said Mitch Plaat, director, contract services at CNF. "On demand procurement made the most sense to CNF. The flexible, affordable service allows us to achieve savings rapidly without the up-front investment and ongoing resource commitment associated with the implementation of enterprise software."

"Being able to access procurement and supplier enablement services on-demand allows smart e-businesses like CNF to reduce costs and focus on their core competencies," said Jim Corgel, general manager, IBM e-business on demand services. "On demand procurement overcomes cost, resource, and skill obstacles to deliver world class technology that is rapidly deployable."

"Delivering business process solutions as an on-demand service, over the Internet is the way of the future," said Ruby Sahiwal, chief operating officer, Ketera Technologies. "Just as payroll processing and IT management have become on-demand services, so too will spend management and procurement. A growing number of established and insightful companies such as CNF are recognizing this and establishing the latest trend in business management."

CNF has been an industry pacesetter in meeting the needs of customers -- from middle market to giant multinationals seeking to improve the management of increasingly complex supply chains and logistics services in order to lower costs, reduce inventories, and increase speed, flexibility and efficiency. CNF's principal component companies -- Con-Way Transportation Services and Menlo Worldwide -- operate in regional trucking, air freight, ocean freight, customs brokerage, global logistics management and trailer manufacturing.

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