LONDON--(BUSINESS WIRE)--Sept. 3, 1999--
Second EuroNet Portal Launch Welcomed By Local Buyers and Auctions
e-Auction Global Trading Inc. ("e-Auction") (OTC BB:EAUC)
today announced the introduction of their 'EuroNet Fish Portal'.
Similar to the EuroNet Flower Portal announced last month, this portal
will initially be offered to Schelfhout Computer Systemen N.V.'s
('SCS') existing European auction clients.
Currently, these auctions cannot link together because they have
no reliable mechanism to confirm a buyer's ability to pay for the
seller's goods. The EuroNet Fish Portal will provide communication
between international sellers and buyers so these 38 standalone SCS
systems - currently conducting US $2.1 billion in annual trade - can
be linked together to create Europe's first open pan-European Fish
market.
"The EuroNet Fish Portal will transform the highly fragmented
fish industry and create a truly efficient and free flowing market,"
commented Luc Schelfhout, president of SCS. "From our initial
discussions with clients, it is obvious that everyone involved in the
industry is looking forward to, and will greatly benefit from, this
evolution in the way we do business."
Initially, 10% of the trade volume will be facilitated through
e-Auction's EuroNet Fish Portal in the next six months, with the rest
of the $2.1 billion worth of annual trade being scaled up on the
network over the next year. Once networks have been established with
SCS's existing customers - comprising approximately 10% of the fish
auction revenue in Europe - e-Auction will begin to offer the network
to the remaining 90% of auction markets throughout Europe.
It is projected that the implementation of e-Auction's EuroNet
Fish Portal will enable these 38 SCS customers and their buyers to
reduce their costs of agents and financial services from approximately
8% or US $170 million by at least $60 million. Though these savings
are dramatic, they simply reflect the enormous efficiency gains
achieved by streamlining and simplifying the currently complex
settlement process. This will be accomplished by removing several
redundant and costly steps lowering banking and agency expenses in
addition to a reduction in internal labour and administrative costs -
by enabling open connectivity between buyers, sellers and auctions.
Currently, standalone auction houses perform credit checks and
receive letters of credit for each buyer. The buyer, in turn, must
repeat the process for each auction house with which they deal.
e-Auction has eliminated these redundancies by implementing a
centralized financial settlement solution. This solution makes it
possible for an international buyer to participate in the auctions in
their own currency, while the auction house and producers are paid in
their local currency, thereby reducing bank service fees.
"Currently, buyers of all perishable commodities who deal with a
variety of auction houses face an extremely cumbersome and inefficient
process. These inefficiencies carry over to the auction houses as
well," added David Hackett, chief financial officer, e-Auction Global
Trading Inc. "Our EuroNet Fish Portal will offer the technological and
financial tools necessary to address the inefficiencies on both sides
of the transaction, resulting in significant time and cost savings as
well as a reduction in service fees."
e-Auction Global Trading Inc.
e-Auction combines real time, electronic auction systems with
integrated financial services including foreign exchange, hedging and
financial settlement services. These are vital components to the
overall auction process, and allow e-Auction to benefit from multiple
revenue streams. e-Auction provides unprecedented value added services
to auction houses, buyers and sellers in all industries that conduct
commodity based trading, resulting in new markets, lower costs and
more efficient cost saving transactions for all parties.
As a leader in providing B2B auction solutions, e-Auction is
involved in the largest market segment of Internet auctions. According
to Forrester Research Inc., it is estimated that by 2002 $52.6 billion
in transactions will be conducted through B2B auctions. This value
dwarfs the expected $7.5 billion business-to-consumer (B2C) market and
the $4.8 billion person-to-person (P2P) market where companies such as
eBay (Nasdaq:EBAY), Onsale (Nasdaq:ONSL) and Amazon.com (Nasdaq:AMZN)
target their services.
For more information on e-Auction please visit the web site at
eauctioninc.com.
All trademarks, tradenames, registered trademarks, or registered
tradenames are property of their respective holders.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Such forward-looking
statements involve risk and uncertainties which may cause the actual
results or objectives to be materially different from those expressed
or implied by such forward-looking statements. Such factors include,
among other things, the Company's financial performance; changes in
the competitive environment; adverse changes in the economy; ability
to maintain long-term relationships with customers; and financing
requirements.
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CONTACT: Investor Relations:
TPI Communications, 888/461-9991
or
Corporate Relations:
e-Auction Global Trading Inc.
David Hackett, 416/861-0016
dhackett@eauctioninc.com
or
Media Relations:
e-Auction Global Trading Inc.
Nancy Sicurella, 416/861-0016
nsicurella@eauctioninc.com |
