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Ariba and Sabrix Bring Benefits of Spend Management to Transaction Tax Management

Ariba and Sabrix Bring Benefits of Spend Management to Transaction Tax Management

SAN RAMON, CA -- (MARKET WIRE) -- 04/21/05 -- Sabrix(TM), Inc., a leading provider of Consolidated Transaction Tax Management(TM) applications, announced that it is working with Ariba®, Inc. (NASDAQ: ARBA), to extend the benefits of spend management to shared customers dealing with the complexities of transaction taxes. The companies are cooperating to enable the integration of the Sabrix Application Suite and Ariba® Spend Management(TM) solutions, allowing corporations to improve cash flow and reduce the cost of compliance for sales and use tax on purchases. Sabrix will also be exhibiting next week at Ariba LIVE 2005 from April 25-28, 2005 in Orlando, Florida, in booth 17.

Unlike sales tax collection, which is primarily the function of collecting tax from customers and remitting it to the government, sales and use tax on purchases represent actual costs incurred by a company -- estimated to be in the billions for Global 2000 companies. These substantial costs can be reduced through effective tax management. Determining the correct tax for payment purchased items is complex, with more than 11,500 tax authorities in the U.S. applying different rates and exemptions for a wide variety of products and services. Compounding this challenge is the fact that taxes on identical items will vary based upon how the item is ultimately used by the company making the purchase.

The shared customers of Sabrix and Ariba can now benefit from communication between Ariba Spend Management solutions and the Sabrix Application Suite for improved enterprise-wide spend control and insight into tax liabilities, as well as increased efficiencies, reduced costs, and an improved bottom line. Sabrix has joined the Ariba Solution Development Alliance Program to create complementary extensions and interoperability between the respective offerings. The Ariba Solution Development Alliance Program offers new capabilities, knowledge, tools and value-added services to support participants in developing complementary technology and building third-party applications and services integration to Ariba solutions.

"Working with Sabrix, we can provide our customers technologies that extend the capabilities of specific areas within their overall spend management initiatives," commented Becky Mattick, director of global alliances, Ariba, Inc. "The integration with Sabrix gives procurement and tax professionals more effective procurement controls and better tax compliance capabilities."

"Effective tax management includes not only accurately assessing and paying consumers use tax on indirect purchases, but also validating sales tax and sellers use tax on vendor invoices," added Eric Ruud, senior vice president of sales for Sabrix. "The integration of the Sabrix Suite with Ariba Spend Management solutions gives companies significant bottom-line savings by enhancing procurement with real-time and accurate tax determination, calculation, and reporting."

About Ariba, Inc.

Ariba, Inc. is the leading provider of Spend Management solutions to help companies realize rapid and sustainable bottom line results. Successful companies around the world in every industry use Ariba Spend Management software and services. Ariba can be contacted in the U.S. at 1.650.390.1000 or at www.ariba.com.

About Sabrix

Sabrix is the only provider of software and services that offers a consolidated approach to transaction tax management, enabling tax and IT professionals to manage sales, use and value-added taxes (VAT) with consistent accuracy, control, and efficiency. Unlike tax calculators integrated within each business application, Sabrix's Transaction Services-Oriented Architecture(TM) provides a consistent way to determine, calculate and record any transaction-related tax, independent of the application system, point in the transaction lifecycle, business entity, or geographic location. As a result, enterprise customers are able to manage compliance and optimize cash flows, for a single application or on a global scale. The company's enterprise customers include BASF, Cisco, DTE Energy and York International. Founded in 2000, Sabrix is based in San Ramon, California, with operations in Boston, Chicago, New York, Portland, San Francisco, and London. For more information, go to www.sabrix.com.

Sabrix, Consolidated Transaction Tax Management and Transaction Services-Oriented Architecture are trademarks of Sabrix, Inc. All other company and product names are trademarks or registered trademarks of their respective holders.

Media and Analyst Contacts:

Jill Dornan
Sabrix Press Relations
+1-503-262-6505
[email protected]

Donna Maurillo
Ariba, Inc.
650-390-1773
[email protected]

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