CONFIDENTIAL ©2005 Trade Technologies, Inc. All rights reserved. The State of the Global Financial Supply Chain March 6, 2008 by Kirk Lundburg President & CEO Trade Technologies, Inc.

CONFIDENTIAL Financial Supply Chain? ► Over the past 15 years, management tools and automation have dramatically improved the Global Supply Chain ► The global “Financial” Supply Chain lags far behind. ► Financial Supply Chain includes all processes involved in receiving and making payment for goods and services. ► For buyers its procurement-to-payment process ► For sellers it’s the purchase order-to-cash process

CONFIDENTIAL Major Cost to Global Corporations ► Typical billion dollar global corporations wastes approximately $27 million annually for unnecessary working capital and inefficient processing functions because they lack visibility into Financial Supply Chain and receivables. -- Killeen Associates ► Total value of inefficiencies in global supply chain are estimated between $500 billion and $1 trillion ► The United Nations pegs the annual cost of not making a change from paper to e-paper at $640 billion, and recent estimates of the size of the market for international trade software were more than $800 million.

CONFIDENTIAL Financial Supply Chain is Inefficient ► Cost of time to create and deliver paper documents ► Cost of errors from manual creation of documents ► Lack of visibility into and predictability of payment/collection cycle ► Difficulties in managing dispute resolution ► Difficulties inherent between a variety of separate software solutions managing different elements of each transaction

CONFIDENTIAL Barriers to Solutions ► Language, time and legal (jurisdiction) issues ► Multitude of parties and functions involved ► Entrenched players and solutions ► Industry specific needs and existing solutions ► Penetration of technology backbone and concern ► Goals of buyers and sellers are at odds with each other

CONFIDENTIAL Current State of Financial Supply Chain.

CONFIDENTIAL Looking for Successful Solutions ► Solutions are evolutionary rather than revolutionary ► Must be able to accommodate all existing transaction types and communication formats ► Enable, rather than require, adoption ► Constantly educate and incentivize adoption

CONFIDENTIAL US Importer Solutions ► EDI connection to multiple Banks ► Banks provide traditional letter of credit and collections solutions and also evolving open account solutions ► Banks send POs to vendors and match resulting invoices to payment ► End-to-end solution falls off the cliff at Vendor’s end ► Document chase and data input in overdrive in Asia

CONFIDENTIAL The Asia Vendor Data and Document Chase ► Lack of control and visibility into document creation and goods delivery process by importers results in significant additional burden for vendors ► Multiple document delivery requirements that are different for every vendor ► Proprietary logistics data platforms ► Importer forwarders/consolidators overwhelmed and contribute to delays and errors ► Delays and errors result in financial penalties

CONFIDENTIAL Exporter Solutions ► Banks provide front-end portals for traditional letter of credit and documentary collections (US and Asia banks primarily) ► Document outsourcing and software solutions provide expertise, visibility and control ► Online presentations reduce courier costs and delay– documents can be printed at location closest to issuing bank ► Bank and software providers online solutions provide payment information, status, visibility and control ► Still a long ways to go....

CONFIDENTIAL Still a long ways to go ► Documents still required to be printed at some point. ► Many documents still not available in digital form Legalized documents Bills of lading Insurance certificates etc ► Banks and buyers are not completely connected, so reviews are manual and data is rekeyed into their systems ► Still a long ways to go....

CONFIDENTIAL What to do? ► Identify your own strengths and weaknesses ► Prioritize goals ► Do your research Talk to banks, forwarders, other exporters and importers ► Minimize technology investment / avoid upfront investment and customization ► Constantly measure progress and re-evaluate needs

CONFIDENTIAL Questions/Comments ► Questions/ Comments Kirk Lundburg CEO Trade Technologies, Inc (o) (m)