A.T. Kearney Combines Technology-Driven Procurement
Businesses to Create A.T. Kearney Procurement Solutions

EDS Re-integrates eBreviate into A.T. Kearney as Part of New Unit

A.T. Kearney Procurement Solutions Extends Firm's Strategic Sourcing Market Leadership

PLANO, Texas (December 5, 2001) A.T. Kearney, the management consulting subsidiary of EDS and the market leader in strategic sourcing, today announced it has combined its portfolio of technology-based procurement services into a new unit called A.T. Kearney Procurement Solutions.

The new unit includes eBreviate, a leader in eSourcing solutions including Internet negotiations and RFPs for business-to-enterprise buying, which EDS is re-integrating into A.T. Kearney. eBreviate was conceived in 1998 within A.T. Kearney and has been operated as a wholly-owned EDS subsidiary since January 2000.

"A.T. Kearney invented strategic sourcing and remains the recognized leader, having helped our clients save more than $12 billion annually since 1995," said A.T. Kearney CEO Dietmar Ostermann. "Integrating our powerful portfolio of procurement technologies into one unit, staffed by dedicated
category and technology specialists, who will work side by side with our consulting teams, will enable us to deliver greater value to clients more quickly and at a lower cost."

Creation of the new unit will enable A.T. Kearney to focus its high-value strategic sourcing capabilities on more-complex client situations and categories. At the same time, A.T. Kearney
Procurement Solutions will serve the high-growth procurement services and solutions market.

"Internet-enabled technology has transformed sourcing and procurement activities into a primary competitive advantage, giving senior executives a new appreciation for the link between business strategy and procurement," said Joe Raudabaugh, A.T. Kearney vice president, who has been appointed to head A.T. Kearney Procurement Solutions. "By combining strategic sourcing and procurement transformation consulting from A.T. Kearney with technology and dedicated specialists from A.T. Kearney Procurement Solutions, we will offer clients the seamless delivery of a full range of services, from high-value consulting and packaged e-procurement solutions to complete
procurement outsourcing."

Joining eBreviate in A.T. Kearney Procurement Solutions will be:

Leveraged Sourcing Networks, a series of strategically managed consortia created by A.T. Kearney combining the buying power of non-competitive participating companies with similar purchasing requirements across common categories of expenditures such as technology, energy, marketing, communications, logistics services and facilities management.

Supply Market Solutions, packaged procurement solutions assembled by A.T. Kearney and focused on providing large companies with a cost-effective method for tracking common categories of indirect materials and services such as print buying.

Data Management Group, a team of category management specialists, programmers and technical engineers who maintain, manipulate and analyze complex sets of data for more than 3,000 purchased categories. Through these resources, A.T. Kearney is able to help clients aggressively target the highest potential categories and realize maximum savings and benefits through their sourcing activities.

eBreviate success
eBreviate is a working example of the successful combination of procurement technology and consulting. eBreviate was conceived by A.T. Kearney consultants to provide the technology and affiliated services to support Internet-enabled negotiations. As an EDS subsidiary, eBreviate created an end-to-end suite of eSourcing tools to address web-enabled RFPs, auctions, supply market insights, supplier identification and spend analysis.

Since January 2000, eBreviate customers have negotiated the purchase of $11.1 billion in goods and services using eBreviate tools, saving $1.6 billion and cutting approximately 70 percent from sourcing times.

"The success of eBreviate and its strong ties with A.T. Kearney reaffirm the vision we had when we created the company," said Tom Slaight, a co-founder of eBreviate and a vice president with A.T. Kearney. "That vision combines market-leading sourcing knowledge and service capabilities with powerful technologies to deliver accelerated savings and new levels of efficiency to our customers."

Slaight, who had been serving as eBreviate interim president, assumes that post on a permanent basis as part of the new organization, while continuing as an A.T. Kearney officer.

The current leadership structure for eBreviate will remain in place under the new Procurement Solutions organization, with Luke Saban as chief operating officer and Carrie Ericson as vice
president of global operations.

Since the current eBreviate management team assumed these roles in July, total contracts closed per week have increased 10 percent. Average contract size has increased 20 percent. Long-term annual agreements have doubled. Non-U.S. revenues have expanded, now accounting for more than 40 percent of global eBreviate revenues.

eBreviate has 98 customers including Avon Products, Becton Dickinson, Bosch Automotive, Corporate United Buyers Consortium, Cyberlynx, Delta Airlines, Dura Automotive, Entergy, Fluor Daniel, Gardner Denver, Heinz, Louisiana Pacific, Maple Leaf Foods, Marks & Spencer, McCormick & Company, NOVA Chemicals, Procter & Gamble, Prudential, Reckitt Benckiser, Rohm and Haas, Sprint, St. Gobain, Transora, the U.S. Navy and Volkswagen.

About A.T. Kearney
A.T. Kearney (www.atkearney.com) is one of the world's largest and fastest-growing management consulting firms. With a global presence that includes more than 60 offices in 37 countries, spanning major and emerging markets, A.T. Kearney provides strategic, operational, organizational and technology consulting and executive search services to the world's leading companies.

Since 1995, A.T. Kearney has provided strategic sourcing services for more than 200 major corporations, helping clients achieve $12 billion in annual savings on more than $100 billion in annual purchases in 3,000 purchased categories. With more than 500 consultants with deep expertise in supply markets, strategic sourcing and procurement transformation, A.T. Kearney’s results orientation has positioned it as the market leader in strategic procurement consulting.

About EDS
EDS, the leading global services company, provides strategy, implementation and hosting for clients managing the business and technology complexities of the digital economy. EDS brings together the world’s best technologies to address critical client business imperatives. It helps clients eliminate boundaries, collaborate in new ways, establish their customers’ trust and continuously seek improvement. EDS, with its management consulting subsidiary, A.T. Kearney, serves the world’s leading companies and governments in 58 countries. EDS reported revenues of $19.2 billion in 2000. The company’s stock is traded on the New York Stock Exchange (NYSE: EDS) and the London Stock Exchange. Learn more at www.eds.com.

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