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Media Release -- February 1, 2006 INNOVATIVE E-COMMERCE COLLABORATION FORMALIZED; SUPPLY CHAIN SAVINGS TO BEGIN FEBRUARY 2006
Ormed Information Systems Ltd™, Scotiabank™, and Chase Paymentech Solutions, LLC™ signed formal agreements today to collaborate in the launch of ORMED X Easy Pay™, an innovative electronic payment and reconciliation program that reduces supply chain transaction costs by up to 90 percent by substantially streamlining the buyer’s accounts payable function and the vendor’s accounts receivable function. The first phase of a multi-site pilot project, focusing first on Ormed’s hospital clients in Canada and the United States, will be underway in February 2006. “Easy Pay is a unique e-commerce business process where buyers are able to pay their suppliers immediately upon confirming receipt of goods… and without negatively affecting their own cash flow,” says Dale Gregg, Ormed’s senior vice president and chief technology officer, the designer of Easy Pay. “By automating, integrating, and streamlining the purchasing, payment, and payable process, Easy Pay reduces the total cost of a purchase order from an average $150 to as low as $15. “The possible cost savings to the market at large are enormous. Based on adoption of Easy Pay throughout Canada and the United States, we estimate the healthcare community alone can save billions of dollars annually. “Imagine the cost savings when this becomes the norm for all business.” The pilot project involves six hospitals – and selected healthcare vendors – in Canada and the US. Hospitals purchase supplies and equipment from these vendors online through the ORMED X™ B2B internet portal, and are granted a pre-determined interest-free settlement line on Scotiabank’s Visa* Commercial Card platform to accommodate their Easy Pay purchases. They receive a single, fully reconciled statement from Scotiabank to cover all Easy Pay transactions, and make a single monthly payment to Scotiabank instead of hundreds or thousands to multiple vendors. When the goods are received by the hospital, Scotiabank immediately pays the vendor. Vendors have the option of integrating directly to ORMED X or connecting through any ORMED X exchange partner to send and receive Easy Pay transactions. Ormed president and CEO Chris Sherback says, “Ormed is very pleased to have the opportunity to work with Scotiabank and Chase Paymentech in the launch of this revolutionary business process. These companies have shown a unique level of innovation and forethought in bringing this service to market, and their extensive B2B network and client base will allow us to deliver Easy Pay to an unlimited number of businesses. “As someone who started his career as an accountant, it is exciting to envision a world where the extensive – and expensive – work involved in accounts payable and receivable departments, including an unbelievable amount of manual invoice and bank reconciliation effort, is no longer necessary. “We are only now beginning to understand the full extent of the potential cost savings for buyers and suppliers and quantifying these savings will be the focus of our pilot project,” he adds. “Scotiabank is pleased to be part of this exciting solution,” says Paul LeBlanc, Scotiabank’s senior vice-president, global transaction banking. “It represents an innovative way of driving down costs while providing an integrated data stream that facilitates reconciliation processes.” “Chase Paymentech is excited to partner with Ormed to provide our merchants a secure electronic payment and reconciliation program,” says Ross Haider, corporate executive, business development, Chase Paymentech. “We are always looking for ways to improve our merchants’ payment processing experience and are confident that with the ease and security of processing payments through Easy Pay, our healthcare vendors will be pleased with the cost savings, efficiencies, and convenience.” Program partners intend to publish pilot results and roll out the program to other North American hospitals and industries in late 2006.
About Ormed Information Systems Ltd. Since 1989, Ormed has won staunch customer loyalty by developing and implementing easy-to-use, richly functioned, robust MIS solutions that transform critical business processes by connecting people and processes around the world, in real-time, to create new efficiencies and productivity. With built-in e-commerce through the ORMED X B2B portal, integrated ORMED MIS software makes accurate information accessible to any authorized user at any desktop, reduces errors and costs, and facilitates collaborative and fully informed decision-making. The largest Canadian supplier to Canadian healthcare facilities, there are more than 2,700 Ormed applications running at over 340 sites in North America. For more information, please visit www.ormed.com. About Scotiabank Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 50,000 employees, Scotiabank Group and its affiliates serve about 10 million customers in some 50 countries around the world. Scotiabank offers a diverse range of products and services including personal, commercial, corporate, and investment banking. With $314 billion in assets (at October 31, 2005), Scotiabank trades on the Toronto (BNS) and New York (BNS) Stock Exchanges. For more information, please visit www.scotiabank.com. About Chase Paymentech Solutions, LLC In Canada, Chase Paymentech Solutions is headquartered in Toronto, Ontario and is an affiliate of Chase Paymentech Solutions, LLC. As a leading payment processor and a single source for debit and all major credit cards, the company offers a full suite of advanced payment solutions, including point-of-sale and wireless terminals, an electronic gift card program and secure e-commerce capabilities. Chase Paymentech Solutions, LLC, headquartered in Dallas, Texas, will be the world's largest financial transaction processor for businesses accepting payments via traditional point-of-sale, hospitality, Internet, catalog and recurring billing. The privately held company is an end-to-end processor for merchants of all sizes and industries and is a result of the 2005 integration of the former Paymentech and Chase Merchant Services. The integrated companies will process approximately 13.1 billion transactions annually, with more than $500 billion in annual bankcard volume in both the United States and Canada.
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Media Contacts: Pam Patten
Frank Switzer Director, Public Affairs Scotiabank 416.866.7238 (office) 416.676.7864 (cell)
Ross Haider Corporate Executive, Business Development Chase Paymentech Solutions 416.417.9144
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