News | July 26, 2003

San Miguel Corporation Selects Ariba Spend Management

Leading Asian Consumer and Packaged Goods Company Seeks Purchasing Transformation for Estimated US $2 Billion in Spend

MANILA, Philippines and SUNNYVALE, Calif. - Ariba®, Inc. (Nasdaq: ARBA - News), the leading Enterprise Spend Management (ESM) solutions provider, today announced that San Miguel Corporation, one of the leading food, beverage and packaging companies in Asia, has chosen the full Ariba Spend Management solution set to automate, streamline and manage its purchasing processes company-wide. San Miguel will use Ariba® Analysis(TM), Ariba® Category Management(TM), Ariba® Enterprise Sourcing(TM), Ariba® Contracts(TM), Ariba® Buyer(TM), Ariba® Travel and Expense(TM) and Ariba® Invoice(TM) to manage its complete life cycle of spend -- an estimated US $2 Billion -- from planning to payment.

Dubbed Project STEP-UP (SMC Technology Enabled Procurement - Unlimited Potential), the initiative aims to improve San Miguel's daily purchasing processes, reduce cycle times, consolidate suppliers and reduce purchasing costs. Project STEP-UP is a key component in San Miguel's efforts to consolidate and integrate operations from its recent acquisitions, and to continue its regional growth. The Ariba solutions will help San Miguel aggregate purchasing power and knowledge across the organization, channel spend to preferred suppliers, negotiate better contracts and ensure compliance against those contracts.

"Project STEP-UP aims to transform procurement at San Miguel through increased spend visibility and information, and the creation of a uniform, automated buying process, and by enabling us to locate and work with the best suppliers available in order to deliver quality goods at competitive prices to our customers," said Gerardo Payumo, VP and Director of Purchasing, San Miguel Corporation. "After careful analysis, we are confident that Ariba Spend Management is the right set of solutions to make this possible."

"San Miguel is a true leader in its field and is taking the necessary steps to ensure a continued competitive advantage with ESM," said Leo Keeley, VP and General Manager for Ariba Asia-Pacific. "Ariba's proven solutions together with the expertise of San Miguel's IT team, and our local partner, TransProcure represents a powerful combination for delivering a robust, effective and easy-to-use spend management solution to San Miguel."

Integration of the Ariba solutions to San Miguel's back-end ERP systems, including SAP applications, will be managed by San Miguel's IT team, and will extend across 11 business units. TransProcure, the leading procurement services company of Asia will provide procurement services and local support. The first phase of deployment will commence in August.

About San Miguel Corporation
San Miguel Corporation is the largest publicly listed food, beverage and packaging company in the Philippines. Founded in 1890 as a brewery, the company has over 100 facilities in the Philippines, Southeast Asia, China and Australia. San Miguel's flagship product, San Miguel Beer, holds over 90% share of the Philippine market. It is among the world's largest selling beers and among the top three brands in Asia. San Miguel's food operations involve the production and marketing of chicken, pork and beef, ready-to-cook as well as processed meats, and butter, cheese and margarine, coconut oil and animal feeds.

About Ariba, Inc.
Ariba, Inc. is the leading Enterprise Spend Management (ESM) solutions provider. Ariba helps companies develop and leverage spend management as a core competency to drive significant bottom line results. Ariba Spend Management software and services allow companies to align their organizations with a spend-centric focus and deploy closed-loop processes for increased efficiencies and sustainable savings. Ariba can be contacted in the U.S. at 1-650-390-1000 or at www.ariba.com.

NOTE: Ariba and the Ariba logo are registered trademarks of Ariba, Inc. Ariba Analysis, Ariba Buyer, Ariba Category Management, Ariba Contracts, Ariba Travel & Expense, Ariba Workforce, Ariba Invoice, Ariba eForms, Ariba Enterprise Sourcing, Ariba Supplier Network, BPM Services, Power