Pantellos realizes cash-flow positive position


THE WOODLANDS, TEXAS, July 22, 2003 — Pantellos, an independent electronic marketplace and supply chain services company for the utility industry, announced it has completed its second consecutive quarter with positive earnings, excluding interest, taxes, depreciation and amortization (EBITDA). It further announced that it has exceeded its cash-flow expectations and finished June in a cash-flow positive position.

For the quarter ending June 30, 2003, Pantellos experienced record revenue of more than $4.3 million. The results represent a 28 percent improvement compared to the same period in 2002 and place the company slightly ahead of what it considers an aggressive 2003 revenue plan. The company also reports finishing the quarter with more cash on hand and less monthly operating expenses than projected in its business plan. As a privately held company, Pantellos is not required to report its income.

The results reflect growth over the prior quarter, when Pantellos announced it had first reached an EBITDA-positive position, placing it among the few B2B marketplaces to achieve this financial milestone. Similarly, Pantellos is one of the few, if any, marketplaces to realize a cash-flow positive position and has reached this financial target well ahead of its plan.

Pantellos had previously announced that it expected to become cash-flow positive during the third quarter of this year.

The company also reported that it generated more than $43 million in customer-reported savings during the quarter on more than $319 million in utility spending. Three customers each reported savings of more than $7 million. Since its inception, Pantellos has enabled customer-reported savings of approximately $220 million on more than $1.6 billion in utility spending.

“Our relentless focus on delivering customer value, managing costs and executing programs has driven better than expected earnings for the quarter. We continue to be pleased with our results, but not satisfied,” said Jim Neikirk, president and CEO for Pantellos. “We will remain focused on business fundamentals and on doing what we do best?meeting customers where they are, helping them implement supply chain and e-procurement programs and generating outstanding results.”

The company experienced significant activity in online auctions during the quarter, completing a record 102 auctions in May. In June, the company announced it had surpassed the $1 billion mark in total online auction volume conducted since January 2001.

“It is clear that utilities are under tremendous pressure to lower costs in order to improve earnings. Our customers are realizing that achieving supply chain excellence through e- commerce technologies and services can quickly reduce costs and improve profits while delivering value to internal customers,” said Neikirk. “Pantellos will continue to help customers meet these challenges and help make a tangible and sustainable impact on their bottom lines.”

About Pantellos Pantellos is the leading supply chain services company for the utility and energy industries. Pantellos offers access to deep supply chain expertise, a broad suite of supply chain services, an active trading community and leading-edge technologies.

Pantellos was founded in June 2000 by some of North America’s largest utilities. The Pantellos trading community currently includes more than 30 utility companies and more than 475 energy goods and services suppliers. Pantellos provides simple connectivity to its Marketplace via direct integration or by managed Web solutions. Pantellos is based in The Woodlands, Texas, USA. For more information visit http://www.pantellos.com.

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