FreeMarkets Announces Industry-Leading Auction Technology World's Leading Online Auction Marketplace Releases Latest Version Of

BidWare(R) Technology, Which Has Driven Over $4 Billion in Commerce to Date



    PITTSBURGH, Feb. 14 /PRNewswire/ -- FreeMarkets, Inc. (Nasdaq:   FMKT), the
 world's leading online auction marketplace, today announced the launch of its
 BidWare 3.0 technology, the industry's most advanced technology for Web-based,
 real-time industrial auction markets.
     FreeMarkets' BidWare technology, the power behind the FreeMarkets(R)
 online auction marketplace, is the only Web-based auction technology designed
 for high-value online bidding involving complex market conditions.  Patent-
 pending BidWare technology supports global, real-time auctions and has driven
 more than $4 billion in global business-to-business commerce.  FreeMarkets'
 BidWare technology supports 29 auction formats, enabling global suppliers to
 bid in multiple currencies, across multiple countries, for multi-year
 contracts - all on the World Wide Web.
     "At FreeMarkets, we understand the complexity of applying online auction
 market technology to high-stakes industrial purchases," said Glen Meakem,
 Chairman and CEO of FreeMarkets.  "We know that auctions for near commodities
 like coal are different than auctions for custom components like plastic
 molded parts.  As a result, our BidWare technology is loaded with advanced
 features required to support a range of market conditions and global
 participation, while providing the real-time feedback needed to reach true
 market pricing."
     "Using the FreeMarkets online auction marketplace and the latest version
 of BidWare technology, we created a competitive market for nearly $400,000
 dollars worth of control panels, a complex, custom product," said Chuck Dana,
 Vice President of Global Sourcing, Owens Corning.  "With BidWare technology,
 we received and evaluated 40 bids from seven suppliers in about an hour,
 rather than the weeks typical in a manual process."
     Since 1995, more than 3,000 suppliers from over 45 countries have
 participated in auctions driven by BidWare technology. "FreeMarkets' BidWare
 technology gives us the immediate feedback needed to make competitive bid
 decisions," said George Blass, Owner of Compucision, LLC, a participant in a
 recent FreeMarkets online auction market.  "It's also reliable and
 easy-to-use, which is critical when you're bidding on business that can mean
 millions of dollars."
     BidWare technology includes real-time price feedback which allows bidders
 to see market dynamics at work, an overtime feature which extends the market
 bid time in highly competitive situations, continuous remote connections with
 bidders worldwide and advanced security features to protect the
 confidentiality of online bids.  Patent-pending auction formats of
 FreeMarkets' BidWare technology include:
 
     -- BidWare(R) Transformation Auction for direct price comparisons of
        similar products with unique attributes (such as coal from different
        mines)
     -- BidWare(R) Multi-Currency Auction, enabling global suppliers to bid in
        their currency of choice
     -- BidWare(R) Index Auction for pricing volatile commodities against known
        indices (such as agricultural commodities)
     -- BidWare(R) Net Present Value Auction for evaluating proposals that have
        varying prices over time (such as suppliers bidding decreasing costs
        over time to reflect anticipated productivity improvements)
 
     Pricing and Availability
     FreeMarkets BidWare technology is available now and is an integral part of
 the FreeMarkets online auction marketplace.  The cost of using BidWare
 technology is included in the fees buyers pay to access the FreeMarkets
 marketplace.  Suppliers access the FreeMarkets marketplace and use BidWare
 technology at no cost.  BidWare technology is not licensed separately from the
 FreeMarkets online auction marketplace.
 
     About FreeMarkets
     FreeMarkets is the world's leading online auction marketplace for
 industrial parts, raw materials, commodities and services.  The Company
 created online auctions for over $2.7 billion worth of purchase orders in 1999
 and nearly $1.0 billion worth of purchase orders in 1998.  Since 1995,
 FreeMarkets has created online auctions for products in more than 70 supply
 verticals, including injection molded plastic parts, commercial machinings,
 metal fabrications, chemicals, printed circuit boards, corrugated packaging
 and coal.  More than 3,000 suppliers from over 45 countries have participated
 in FreeMarkets auctions.  FreeMarkets provides access to its online auction
 marketplace to industrial buyers and suppliers.  The FreeMarkets marketplace
 includes proprietary online auction technology, technical operations,
 industrial market making services, access to a global database of suppliers
 and supplier research, call center support to buyers and suppliers in over
 30 languages, and marketplace rules.  The Company's current clients include
 United Technologies Corporation, The Quaker Oats Company, Eaton Corporation,
 Emerson Electric Company, Owens Corning, FirstEnergy Corp., SmithKline Beecham
 plc, Navistar International and Delphi Automotive Systems Corporation.
 FreeMarkets can be found on the Web at www.freemarkets.com.  FreeMarkets and
 BidWare are registered trademarks of FreeMarkets, Inc.
 
     Forward looking statements
     Statements in this press release that are not historical facts, including
 those statements that refer to FreeMarkets' plans, prospects, expectations,
 strategies, intentions, hopes and beliefs, are forward-looking statements.
 These forward-looking statements are based on information available to
 FreeMarkets today, and FreeMarkets assumes no obligation to update these
 statements as circumstances change.  There are risks and uncertainties that
 could cause actual results to differ materially from the forward-looking
 statements, including, without limitation, market acceptance of our online
 auction marketplace, the competitive nature of the market for business-to-
 business online auction services, FreeMarkets' ability to retain and increase
 revenue from existing clients and to execute agreements with new clients, and
 FreeMarkets' ability to attract and retain qualified personnel.  These and
 other risk factors are described in detail in FreeMarkets' prospectus dated
 December 9, 1999, which is included as part of its Registration Statement on
 Form S-1, filed with the Securities and Exchange Commission.
 
     CONTACT:  Karen Kovatch of FreeMarkets, 412-297-8767, or
 kkovatch@freemarkets.com.
 
 

SOURCE FreeMarkets, Inc.

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