netMercury is building an exclusive information technology network and scalable systems to provide automated replenishment services for critical parts and consumables to the global semiconductor manufacturing industry. It is now capitalizing on its critical mass of assets - customer and supplier relationships, domain expertise, profitable and growing existing commerce, key technical capabilities and supply chain management experience - to rapidly grow a highly profitable business within this $22B market. In managing the supply chain to help its partners run their businesses more efficiently and with lower costs, netMercury

• creates connectivity and visibility across the supply chain
• aggregates demand and supply
  
• procures, manages logistics and ensures delivery (complete fulfillment)
  
• manages all administrative processes: invoicing, payments and returns.

netMercury's strategy is to go beyond automating transactions and reducing interaction costs between buyers and sellers - it is to manage information rather than inventory. The value-added services provided by netMercury's new business systems will provide the industry with a previously unavailable level of automation, decision making, and collaboration. netMercury's service offerings include:

• auto-replenishment services, triggered by real-time analysis of parts and material usage, integrated with automated procurement.
• connectivity through the web for confirming, tracking, and tracing orders.
  
• increased supply chain visibility and flexibility for upside and downside planning.
  
• freedom for buyers and suppliers to focus on their core value-added businesses.

With two decades experience as leaders in supplying parts and consumables for the global semiconductor industry, netMercury is the result of the merger of Teleparts International and THT Sales Company. It has a current base of over 100 customers, 250 suppliers, 100,000 parts and a strong management team with substantial industry, technical and supply chain management expertise. netMercury integrates the latest business-to-business web technology while combining the best of a traditional business modelwith the Internet's ability to transmit and manage critical information in real-time.

Given the fragmentation and globalization of the semiconductor industry, the stakes are significant. According to Semiconductor Equipment and Materials International (SEMI), the total market for parts, consumables and materials is set to rocket from $40 billion to nearly $65 billion within four years - a compound annual growth rate of more than 13%. netMercury estimates the current total addressable market at approximately $22B.

netMercury - the first full-spectrum service to transform, simplify, automate and manage your supply chain.

Terry Hollingshead, CEO. Founder and President, THT Sales. Over 20 years as leading rep and distributor of semiconductor manufacturing equipment, parts and materials Awarded numerous Supplier Excellence Awards from key customers, including Texas Instruments and Philips.

Greg Shepard, VP Customer Operations and Global Marketing. Over 20 years' industry experience, including senior sales and marketing positions at Speedfam-Ipec and as President of Rodel International Operations. Established and managed direct sales organizations, JV's and representative affiliates in Taiwan, Japan, Korea, Singapore and other international locations.

Michael Taylor, VP Marketing and Business Development. 17 years' industry experience in marketing and business development for semiconductor manufacturing equipment, technology, parts and materials companies, including Therma-Wave, Tegal, Voyan Technology and Teleparts International. MS, Engineering Sciences, University of Florida.

Ross Woolley, Chief Financial Officer. 12 years' of diverse senior financial and business management experience at Sun Microsystems and Hewlett-Packard, including the first five years with Agilent Technologies' $2 Billion Semiconductor Products Group. Masters in Business Administration, Harvard University.

Kenneth Smith, Chairman, Board of Directors. Founder and CEO, Teleparts International. Over 16 years as a supplier to the semiconductor industry. Founder and CEO, OnTrak Systems, market-leader in post-CMP wafer cleaning. Raised venture funding from TA Associates in Nov 94, leading to $52M IPO in June 95. Recruited James Bagley, former COO of Applied Materials, to succeed him as CEO in 1996. Merged with Lam Research in 1997 at a value exceeding $450 million.