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CML`s:Major Aust.Co`s Partner to Form Multiple Ind.Elec.Mkt.

Document date:  Wed 05 Jul 2000
Published:  Wed 05 Jul 2000 10:37:45
Document No:  164063
Document part:  A
Market Flag:  N
Classification: 

COLES MYER LTD.                               2000-07-05  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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MEDIA RELEASE

The intention to form Australia's first multiple-industry business
to-business e-marketplace - corProcure - was announced today by
fourteen of Australia's leading companies.

The companies, each of which is a founding shareholder in corProcure,
include Amcor, AMP, ANZ, Australia Post, BHP, Coca-Cola Amatil, Coles
Myer, Foster's, Goodman Fielder, Orica, Pacific Dunlop, Qantas,
Telstra and Wesfarmers.

Together, these companies intend to spend more than A$8 billion on
indirect goods and services using corProcure over the next two years.
The total value of indirect spend in Australia exceeds A$300 billion
annually.

A Memorandum of Understanding was signed today, and a shareholders'
agreement is expected to be signed in 45 days.

corProcure will be an independent, stand-alone, internet-based
indirect goods and services marketplace open to all existing and new
suppliers. The Founding Shareholders will share the investment cost
of e-procurement infrastructure.

In a joint statement, the Founding Shareholders said that by
seamlessly connecting thousands of trading partners, regardless of
size and location, corProcure is expected to deliver new transaction
efficiencies and standards as well as significant business networking
opportunities across the supply chain that will significantly benefit
both suppliers and buyers.

"The number of leading companies coming together from a range of
industries and business sectors is unmatched in Australia's business-
to-business marketplace. This is a significant and far-reaching
partnership of major buyers and sellers that will utilise technology
to extract and deliver wide-ranging benefits for all parties.

"corProcure is an initiative that will transform procurement
practices in Australia, create new value for buyers and suppliers and
give all participants an improved competitive footing in the regional
and global economy.

"Suppliers will gain access to a much larger customer base, will be
able to reduce administration and customer acquisition costs and
better manage product demand processes, and will eliminate
time-consuming paperwork and tracking. Buyers will benefit from
simplified ordering processes and improved order accuracy.

"corProcure is committed to the development of an open-platform,
standards-based, multiple-industry regional trading network that
delivers real value and benefits to all participants and
stakeholders."

Examples of goods and services traded through corProcure may include:
office and cleaning supplies, fuel, energy, telecommunications,
facilities management, human resources services, legal services,
promotions and advertising, computer services, insurance and capital
expenditure items.

Each founding shareholder will be represented on the board of the new
company. A Team Leader, Business Establishment has been appointed and
a search will be launched this week to recruit an independent
management team. Proposals for technology infrastructure will also be
solicited in the next few weeks. It is expected that transactions
will begin by September this year. 

In recognition of the importance of suppliers to the success of
corProcure, the Founding Shareholders said they would discuss the
company's proposed e-procurement strategy and logistics directly with
suppliers over the next several weeks. A corProcure website, launched
today, contains information for suppliers, and other interested
parties. The web address is http://www.corprocure.com.au.

The Founding Shareholders have not disclosed the amount of expected
savings in transaction costs.

For further information contact:

Sally Abbott or Rupert Hugh-Jones
03 9289 9555

Contact details for corProcure Founding Shareholders.

Amcor
Kerrie Lavey                        Orica
CORPORATE AFFAIRS OFFICER           Kate Shea
Tel: 03 9226 9004                   PUBLIC AFFAIRS MANAGER
                                    03 9665 7256

Peter Brown
MANAGING DIRECTOR                   Pacific Dunlop
Amcor Australasia                   Anton McKernan
Tel: 03 9811 7135                   CORPORATE AFFAIRS OFFICER

                                    Qantas

AMP
Justin Kirkwood                     Telstra
CORPORATE MEDIA MANAGER             Selena Adams
02 9257 7473                        PUBLIC AFFAIRS MANAGER
                                    Tel: 02 8255 2687
ANZ

Australia Post                      Wesfarmers
Stephen Walter
CORPORATE AFFAIRS GROUP
Tel: 03 9204 7135

BHP
Mandy Frostick
MANAGER MEDIA RELATIONS
03 9609 4157; Mobile: 419 546 245

Dr Robert Porter
VICE PRESIDENT INVESTOR RELATIONS
03 9609 3540; Mobile: 419 587 456

Coca-Cola Amatil
Alec Wagstaff
CORPORATE AFFAIRS MANAGER, Australia
Tel: 02 9259 6571

Coles Myer
Greg Price
MANAGER, MEDIA RELATIONS
Tel: 03 9829 6273

Foster's
Mary Reikert
NEW MEDIA ADVISOR
Tel: 03 9633 2277; Mobile: 0418 313 478

Goodman Fielder
Robert Hadler
CORPORATE AFFAIRS DIRECTOR
Tel: 02 8874 6095, Mobile: 4017 00 000