Adexa

FreeMarkets and Adexa Agree to Terminate Merger Agreement

Los Angeles, CA Ð June 5, 2001 Ð FreeMarkets, Inc. (NASDAQ: FMKT), and Adexa, Inc. today announced that they have mutually agreed to terminate their merger agreement without payment of any termination fees. The slowing economy, market conditions and the delays in obtaining SEC approval led both companies to conclude that a termination of the merger agreement would best serve the interests of the two companies and their respective stockholders. Instead of pursuing a merger, the two companies have agreed to a non-exclusive strategic relationship under which they will cross-sell each other's solutions, and FreeMarkets will acquire an equity stake of approximately 3% in Adexa for $6.0 million.

"FreeMarkets and Adexa have agreed that terminating our proposed merger is the right thing to do, given the economy and market conditions," said Glen T. Meakem, Chairman and CEO of FreeMarkets, Inc. "We plan to continue to provide our customers with the worldÕs leading e-sourcing solutions, and we will partner with Adexa, given its strong technology and customer base, to leverage our e-sourcing technology and expertise into supply chain management and other high-value areas."

ÒBoth companies felt that under current market conditions, the proposed deal did not make as much sense as originally anticipated,Ó said K. Cyrus Hadavi, President and CEO of Adexa, Inc. ÒBy focusing on our core competencies of supply chain optimization, collaboration and business process automation, Adexa will continue to execute and add real value to our customers which has served us well in strong and weak markets. We look forward to partnering with FreeMarkets to leverage our technology and to broaden our collaborative commerce solutions for customers."

FreeMarkets will conduct a conference call for investors and media on Wednesday, June 6, 2001 at 8 a.m. ET in order to provide a mid-quarter update and to answer questions. The call may be accessed by dialing 1-712-257-3648. The passcode for the call is 2106. A rebroadcast of the call will be available from 10 a.m. ET through 11:59 p.m. ET on June 13. The rebroadcast may be accessed by dialing 1-402-220-3886. No passcode is necessary to access the rebroadcast of the call.

The conference call will also be accessible via the Internet. Interested parties may access the Webcast by clicking on the link displayed on the FreeMarkets home page at www.freemarkets.com and downloading any necessary audio software at least 15 minutes prior to the call. A rebroadcast of the call will be available on the site shortly after the completion of the call and will remain available until 11:59 p.m. ET on June 13.

About FreeMarkets
FreeMarkets is the leading B2B Global Marketplace and eSourcing solutions provider. FreeMarkets combines its industry-leading technology platform with unparalleled sourcing information, commodity-specific domain knowledge, world-class services and purchasing scale to deliver fast, measurable savings to customers. FreeMarkets has created over 11,500 online markets for more than $16.6 billion worth of goods and services and created estimated savings of over $3.2 billion for its customers. More than 11,100 suppliers from over 64 countries have participated in the FreeMarkets B2B Global Marketplace. The Company also operates FreeMarkets Asset Exchange, the leading B2B Global Marketplace for surplus assets and inventory. FreeMarkets can be found on the Web at www.freemarkets.com. FreeMarkets¨ and BidWare¨ are registered trademarks of FreeMarkets, Inc., and FullSourceª and QuickSourceª are unregistered trademarks of FreeMarkets, Inc.

About Adexa
Adexa is a leading provider of collaborative commerce solutions critical to e-business. AdexaÕs iCollaboration suite helps enterprises and trading exchange participants make faster, more informed business decisions by optimizing, synchronizing and automating complex, interdependent supply chain operations. Built with next-generation technology, AdexaÕs iCollaboration suite is an open, scalable and adaptable supply chain solution that helps increase customer responsiveness, collaboration with trading partners and enhance overall supply chain efficiency.

Headquartered in Los Angeles, Adexa has licensed its iCollaboration suite to leading companies and trading exchanges around the world, including Advanced Micro Devices, Inc., Conexant Systems, Inc., Lucent Technologies, Inc., Framatome Connectors International, Fujitsu Quantum Devices, Ltd., Matsushita Electronics Corporation, Philips Semiconductors B.V., Sanyo Electric Co. Ltd., and Sumitomo Metal Industries, Ltd. Sitix Division.
To learn more about Adexa and its solutions, please visit www.adexa.com.