GXS Expands Presence in China with Bsteel Win

Sunbury, United Kingdom — 4 January 2004 — Underscoring its ability to drive the next generation of global B2B e-commerce, GXS today announced it has been selected by Bsteel®, the B2B and e-business subsidiary of Baosteel Group Corporation (Baosteel), to develop a B2B gateway and supply chain services centre that will enable Baosteel business divisions to connect with suppliers. Bsteel will use GXS to improve efficiency of their business processes in procurement, logistics and customer service.

As China’s largest iron and steel producer, Baosteel serves the global appliance, auto, construction, oil and shipbuilding industries. The state-owned company, which produces more than 20 million tons of crude steel annually, is in the process of revamping its strategic business processes to include supply chain integration and centralisation of procurement and logistics. Bsteel needed a solution to allow the company to connect with its suppliers and establish a global, centralised supply chain service centre to serve major customers as well as Baosteel’s internal divisions.

Bsteel selected GXS Enterprise System™ technology, an enablement component to the GXS Trading Grid®, a scalable, reliable data integration services platform that handles transaction messaging between business partners and internal applications to gain visibility into its supply chain. GXS Enterprise System™ combines data translation, transaction routing and business process integration capabilities within a single system to deliver increased efficiency of routine, high-volume transactions, while handling non-routine transactions in a correct, consistent and effective manner. Later in 2005, Bsteel expects to benefit from Enterprise Next Generation – an important upgrade that combines the benefits of Enterprise System technology with webMethods Fabric to create a 100% J2EE-based B2B integration solution.

“We selected GXS over competing vendors because of their wide-reaching global presence and deep supply chain expertise,” said John Zhang, president, Bsteel. “Leveraging the GXS Enterprise System will simplify our integration efforts and streamline our supply chain. Once the system is implemented, Baosteel’s 2,000 suppliers will be able to improve their business transaction processes by linking with digitised business processes worldwide.”

According to a Gartner, Inc. report titled China’s Emergence Transforms the Business World, April 24, 2004, “…China has gone from underdeveloped nation to global success story, averaging a 9 percent growth rate in gross domestic product (GDP). China’s economy has grown seven times larger than in 1979, and trade volume has been even more staggering — a 2,700 percent growth rate for the same time period.”

“Our technologies allow global enterprises like Baosteel to improve their business relationships and continue to reap the benefits of tight supply chain collabouration,” said Ben Wong, vice president of Asia-Pacific Operations at GXS. “Baosteel is one of the largest enterprises in China so this implementation will have an enormous impact on 2,000 manufacturers in China and worldwide.”

About Bsteel
BSTEEL ONLINE CO., LTD (Bsteel) is a professional provider of B2B e-commerce solutions. The B2B business model is serving the traditional industry and finally achieving the transition from traditional economy to the new Internet economy. Bsteel’s goal is to form business alliance and offer professional services to the global iron and steel manufacturers and consumers, offering comprehensive online trading and information services and technical support. Bsteel’s members can conduct trade in a secure, reliable and efficient environment, and negotiate the best terms within an extensive market.

About GXS
GXS is a leading global provider of B2B e-commerce solutions that simplify and enhance business process integration and collabouration. Organisations worldwide, including more than 75 percent of the Fortune 500, leverage GXS Trading Grid® to achieve balance between supply and demand. Active in the global standards arena, GXS solutions enable customers both large and small, to connect with global partners, synchronise product information, optimise inventory levels and demand forecasts, and accelerate the execution of supply chains.

Headquartered in Gaithersburg, Md., GXS provides sales and support to businesses and their partners worldwide. For more information about GXS visit www.gxs.co.uk.

About GXS
GXS is a leading B2B integration services provider and operates the world’s largest integration cloud, GXS Trading Grid®. Our software and services help more than 550,000 businesses, including 22 of the top 25 supply chains, extend their partner networks, automate receiving processes, manage electronic payments, and improve supply chain visibility. GXS Managed Services, our unique approach to improving B2B integration operations, combines GXS Trading Grid® with our process orchestration services and global team to manage a company’s multi-enterprise processes. Based in Gaithersburg, Maryland, GXS has direct operations in 20 countries, employing more than 2,400 professionals. To learn more, see www.gxs.co.uk, read our blog at www.gxsblogs.com and follow us on Twitter at twitter.com/gxs .You can also access our public filings with the Securities and Exchange Commission at www.sec.gov/edgar.shtml.

This press release may contain “forward-looking statements.” All statements, other than statements of historical facts that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are affected by risks, uncertainties and assumptions, including but not limited to those set forth in the company’s public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Accordingly, actual results or outcomes may differ materially from those expressed in the forward-looking statements. You should not place undue reliance on these statements and the company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise.

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Media Relations
Robin Lane
Tel: +1 301-340-4277