J2C PLC
19 March 2001
J2C AND ORACLE TARGET UK LOCAL GOVERNMENT
PROCUREMENT MARKET
WITH FIRST ONLINE MARKETPLACE
London, UK. 19th March, 2001 - J2C Plc ('J2C'), the UK operator of B2B e-
marketplaces, and Oracle, the leading provider of software for e-business,
today announce an agreement which will deliver an online marketplace for local
government procurement. The agreement, which brings together the combined
expertise of J2C in B2B marketplaces, and Oracle's established presence in the
public sector, implements J2C's BestValueZone marketplace running on Oracle's
Exchange technology, together with a hosted service to deliver Oracle Internet
Procurement applications. The comprehensive e-business solution will enable
public sector customers to move one step closer to the UK 'Modernising
Government' targets. The online marketplace will address a wide range of local
and central government IT requirements, initially in the UK, and will focus on
UK local authority purchasing and shared Best Value practice.
J2C's strength in the local government e-procurement sector, through its
BestValueZone marketplace, combined with Oracle's proven track record in
applications and market leading e-government solutions, assures a formidable
capability to deliver benefits throughout the public sector. With pilot
projects already coming on-stream, J2C and Oracle intend to be first choice
suppliers and first to market in this important e-marketplace sector. Local
Authority indirect spending in this sector is valued at over £20bn annually.
This solution is further reinforced by J2C's involvement in the Best Value
Alliance, whose blue chip members collectively provide financial services,
business process consulting, procurement and systems integration services to
UK public sector.
The marketplace will offer joint sales, technology and service provision and
will target other major markets where J2C and Oracle already have a presence,
and will also deliver value to suppliers wishing to lower their cost of sales
and expand their market reach within government.
These advantages should be particularly welcome in the SME (Small Medium
Enterprise) supplier sector.
Commenting on the agreement, Karl Watkin, CEO of J2C said: 'The business case
for this is compelling and I am excited about the opportunities we are
generating. This solution will provide local authorities the opportunity to
realise significant savings through lower transaction costs and greater
efficiencies in working together. The combined market experience of
BestValueZone and technology strength of Oracle in local government gives us
the capability to become the premier player in UK public sector e-business
services'. He continued, 'This agreement underlines our determination to
concentrate on our key marketplaces, and is a further step in consolidating
J2C's public sector market presence'.
Stuart Turner, Vice President, Public Sector Sales, Oracle UK, commented 'The
public sector must increasingly address the same business issues as the
private sector. This marketplace will deliver the only complete and integrated
e-procurement solution available in a timeframe that will enable the public
sector to meet challenging e-government targets across Europe.' Oracle
supplies its leading application solutions to over 70 local government
authorities.
DISPOSALS AND DEAL PROCESS
On 1 February 2001 it was announced that the Board of J2C had decided to
dispose of three of the Group's subsidiaries, namely Webfreight, Granite Rock
and Pulp&Paper.Net. Further to that announcement, the Board announces that
having failed to find a buyer for Webfreight and Granite Rock, it has resolved
to close both of the businesses. It is expected that the closure of both
businesses will be finalised by the end of April 2001.
On 16 March 2001, J2C agreed to sell Pulp&Paper.Net for a nominal sum to
Philip van Harn, a member of its management team.
As at 30 September 2000, Webfreight, Granite Rock and Pulp&Paper.Net had net
liabilities of £494,000, £396,000 and £689,000 respectively. As at that date,
no goodwill in respect of the three businesses was carried on the consolidated
Group balance sheet.
In the opinion of the directors of J2C, having consulted Brown, Shipley & Co.
Limited, the Company's nominated adviser, the terms of the disposal of
Pulp&Paper.Net are fair and reasonable so far as shareholders in J2C are
concerned.
As stated on 1 February 2001, the Board of J2C has resolved to seek a major
transaction for the Group with the intention of making the best use of the
Company's significant cash assets. This process is ongoing and the Board will
make a further announcement when appropriate.
J2C plc
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J2C is a UK registered holding company that was set up with the aim of
establishing and operating business-to-business trading exchanges. Formed in
July 1999, J2C has been listed on AIM (Alternative Investment Market) since
its IPO in February 2000.
About Oracle
************
Oracle Corporation provides the software that powers the Internet. For more
information about Oracle visit our website at www.oracle.com.
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Trademarks
**********
Oracle is a trademark of Oracle Corporation. Other names may be trademarks of
their respective owners.
Enquiries:
Karl Watkin 07808 690 069
Darren Kell J2C plc 07785 394 056
Suzanne Harker Oracle Corporation 0118 924 3570
Gavin Partington
Russell Hunt Brunswick Group Ltd 020 7404 5959
Sarah Nelson
Suzy Sammons Bite Communications 020 8600 6709
