Scandinavian Airlines System Denmark Norway Sweden Press release SAS Corporate Communications 2000-07-24 SE-195 87 Stockholm, Sweden Telephone: +46-8-797 0000 Page 1/1 Fax: +46-8-797 1515 THIRTEEN AIRLINES FORM INDUSTRY’S LARGEST B2B EXCHANGE Thirteen of the world’s major airlines today announced the creation of the airline industry’s largest business-to-business e-commerce exchange. The exchange, to be officially launched in the next few months as Aeroxchange , will offer the most comprehensive selection of aircraft technical parts and services as well as general business supplies to airlines on the web. The group of airlines has selected and is in negotiation of a definitive agreement with Oracle Corporation of Redwood Shores, California, to become the exchange's technology provider. First announced in April 2000, the multi-airline venture has grown rapidly to count ten of the world’s largest airlines as founding members, each with one representative on Aeroxchange’s Board of Directors. The ten are: Air Canada, All Nippon Airways - ANA, American West Airlines, Cathay Pacific Airways, FedEx Express, Japan Airlines, Lufthansa German Airlines, Northwest Airlines, Scandinavian Airlines System - SAS and Singapore Airlines. Other confirmed participating airlines with equity participation include Air New Zealand, Austrian Airlines and KLM Royal Dutch Airlines. With founding member airlines in Asia-Pacific, North America and Europe representing passenger and cargo operations, the new exchange is global in scope. It is estimated that the exchange has the potential USD $45 billion annually of the current 13 airlines' purchases of goods and services, excluding aircraft and fuel. “We look forward to realizing substantial cost savings through lower transaction, processing and inventory costs,” says Leif Håkansson, Vice President Corporate Purchasing of SAS, and continues: "At SAS alone, a one per cent reduction of purchasing and transaction costs correspond to a SEK 100 million saving annually". Initial development will center on Internet procurement capabilities resulting in streamlined and enhanced processes for greater efficiency, providing both airlines and suppliers with the benefits associated with lower transaction, processing and inventory costs. Lowering the total cost of ownership throughout the supply chain will create significant value for all participants. Later development stages will include supply chain management features such as improved inventory control, production planning. Examples of items that will be bought and sold through Aeroxchange include airframe, avionics and engine components and maintenance services, as well as a wide range of airline specific goods and services. In addition to the founding members, all airlines, other industry related companies and their suppliers will be invited to use the service of the exchange. For further information, please contact Leif Håkansson, Vice President Corporate Purchasing, SAS, +46 (0)8 797 10 69 SAS CORPORATE COMMUNICATIONS.