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Non-Tech : FedEx (FDX) -- Ignore unavailable to you. Want to Upgrade?

To: Dayuhan who wrote (353)	3/29/1999 4:22:00 PM
From: Darryl Olson	Read Replies (1) \| Respond to of 524

FDX invests in Vastera: BURRELLE'S/VMS NewsAlert Service 75 East Northfield Road/ Livingston, NJ / 973-992-6600 SOURCE: CNN Interactive SUPPLIER: World Wide Web DATE: 03-27-99 HEADLINE: Vastera's Big Brother International trade logistics software company Vastera just got a new big brother: FDX Corp. Last week FDX Corp., parent of Federal Express Corp. , RPS, Viking Freight, Roberts Express and FDX Global Logistics, made a capital investment in Dulles, Va.-based Vastera and Dennis H. Jones, executive vice president and CIO of FDX, joined Vastera's board of directors. AMR Research described the move as a "deal sure to rock international trade logistics system vendors. The size of (FDX's) customer base alone could make Vastera's compliance and document management a de facto standard in the industry." According to AMR's, Vastera's software "fills a gaping hole in the FDX service offering. Already the leading filer of Shippers' Export Declarations, FDX can now offer full ITL management services not only into and out of the United States but also between foreign countries. The addition of sophisticated ITL functionality will enable e- commerce markets to expand worldwide and add handsomely to FDX revenue at the same time." Vastera began working with Federal Express a year ago, said Larry Ferrere, Vastera vice president, marketing and business development. Last July, Vastera announced that its EMS-2000 software would be integrated with FedEx's software to provide real-time tracking and tracing capabilities to FedEx clients, as well as the ability to generate shipment labels. The relationship has evolved, said Ferrere, because of the synergy between the two companies. "We see ourselves with synergy in the markets and the issues we're trying to solve," said Ferrere. FDX, he said, has "always been a leader in automating their business processes. In a similar light, Vastera has been very focused on automating moving goods internationally - not only automating, but keeping those rules and regulations in synch" with countries' changing requirements. For its part, said Ferrere, FDX viewed Vastera as a good investment. "We did not go out looking for money," he said. Ferrere described the amount invested in the company as not material. "It's not a lion's share of our company. It's a real minority stake. It wasn't done really for the cash purposes, but more done for a strategic perspective. We just think it really solidifies our relationship and helps build it to the next level," said Ferrere. Right now, Vastera's software has "only been used with FedEx," he said. "But certainly our goal is to expand throughout the FDX family." Vastera is currently engaged in discussions with other FDX subsidiaries to provide its software to them and their customers, he said. In addition to FDX's strategic investment in Vastera, Dennis H. Jones, executive vice president and CIO of FDX, has been appointed to Vastera's board of directors. "Dennis clearly is known as a thought leader from a logistics perspective and from an information technology perspective," said Ferrere. "In addition, the relationship facilitates us having even greater access to associates worldwide and an additional source of expertise and ongoing maintenance" of Vastera's software. "All major business activities all roll up to Dennis - so clearly you can see there is synergy, him being the sponsor, and he being the person controlling the IT budget and IT professionals within the company," Ferrere said.