Net Exchange’s advanced combined value trading framework selected for Schneider Logistics’ SUMIT CVA procurement system.

SAN DIEGO, CA, July 8, 2002 — Net Exchange, the leading transaction optimization solution provider, today announced the deployment of its combined value trading framework as part of Schneider Logistics’ SUMIT CVA™ collaborative transportation procurement system. SUMIT CVA is aimed at providing shippers with a strategic approach to securing low-cost, long-term freight contracts.

Schneider Logistics selected Net Exchange based on its proven and pioneering work in the architecture of combined value markets. Net Exchange’s combined value trading framework enables a multi-round auction in which carriers dynamically revise price and service lane combinations based on a shipper’s requirements. Logistics consultancy Jos. Swanson and Company collaborated with Net Exchange by providing important domain expertise in the deployment of Net Exchange’s combined value trading framework into SUMIT CVA.

SUMIT CVA is the first commercially available transportation procurement product based on combined value principles and is backed by Schneider Logistics’ expertise at purchasing and managing more than $2.5 billion in freight annually. Operational since the fall of 2001, SUMIT CVA has delivered transportation cost savings of between five and 50 percent per bid and more than $200 million in long-term contracts have already been awarded using this new process.

“Our customers’ strategic procurement requirements are better served through the application of combined value principals and we were impressed with Net Exchange’s ability to adapt its tool to the highly complex transportation procurement environment,” said George Grossardt, vice president of Alliance Services for Schneider Logistics. “We were able to easily integrate Net Exchange’s advanced combined value trading framework and customize its use to deliver this new procurement option to the freight industry.”

In a multi-round auction format, SUMIT CVA allows the efficient matching of carrier capacity with shipper demands by allowing carriers to bid on bundles of lane combinations and grouping of loads that reflect the best use of their transportation network. Compared to a traditional lane-by-lane procurement process, SUMIT CVA helps reduce risk and increase carrier asset utilization which translates to better rates for shippers. This breakthrough approach is enabled by Net Exchange’s combined value trading framework that encapsulates process design and advanced technologies to determine the highest combination of value among bids.

"Better transactions occur when the shipper and carriers find the match that most efficiently allocates shipments to each carrier’s network,” said Charles Polk, president of Net Exchange. “Schneider Logistics recognized that determining the optimal match among many possible fits is a capability not offered in the freight industry. Net Exchange’s approach to transaction optimization finds these optimal matches, providing a distinct advantage to SUMIT CVA.”

About Schneider Logistics, Inc.
Schneider Logistics is a global lead logistics provider that helps customers extract strategic business value from their supply chains in the form of lower distribution costs, reduced inventory, improved customer service, and increased working capital. The company provides Fortune 1000 companies with a range of supply chain solutions including supply chain engineering, supply chain management technologies and outsourced logistics services. Schneider Logistics is a wholly owned subsidiary of Schneider National Inc., North America's leading provider of premium transportation services.

About Jos. Swanson & Co.
Jos. Swanson & Co. (JS&Co), provides logistics engineering services and strategic management counsel. JS&Co's clients range from railroad and trucking firms, to shippers, to equipment manufacturers and suppliers of warehousing services, and designers of information systems. JS&Co have been active in the logistics sector for the past twenty-five years, providing their clients with imaginative and effective solutions to increasingly complex problems. Through their special focus on efficient auction technologies, JS&Co also serve participants in the emerging electronic business and telecommunications sectors. For more information about Jos. Swanson & Co., visit www.jsco.com, or call (262) 638-9980.

About Net Exchange
Net Exchange is the experienced provider of solutions that optimize the value, immediacy, and adaptability of transactions that comprise commerce. In May 1994, faculty from the California Institute of Technology formed Net Exchange to commercialize solutions based on advanced research in computational combinatorial trading. These solutions marry planning optimization techniques with commerce execution and help firms to increase the value of business with their trading partners. To date, Net Exchange has developed combined value trading solutions for logistics, financial, and derivatives trading. For more information about Net Exchange, visit www.nex.com, or call (858) 724-0390.