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  STC Associates
  Carolyn Robertson
  212-725-1900 ext. 204
  [email protected]


Arbinet-thexchange completes agreement with GE Capital Commercial Services to deliver credit risk assurance and accelerate cash flow for bandwidth exchange members

NEW YORK – December 12, 2000 – Arbinet-thexchange, the full-service trading solution for buyers and sellers of telephony bandwidth, today announced an agreement with GE Capital Commercial Services that provides thexchange with global credit risk management services and a variety of financing and back office support services. This facility supports thexchange’s compelling value proposition-providing a centralized e-commerce service that integrates the trading and real time delivery of bandwidth capacity through thexchange’s switching infrastructure. This facility allows the avoidance of bad debt risk for sellers, options to accelerate cash flow for selling members and a range of payment timing options for buyers.

Financial strength and high volume settlement capability is required because thexchange acts as a full-service centralized solution that replaces laborious bilateral wholesale bandwidth transactions. Thexchange platform dynamically links an on-line marketplace with a physical delivery infrastructure and clearing and settlement systems. Thexchange operates a true many-to-many style commodities exchange in which any single buy order may be filled in real time from multiple sellers according to market dynamics.

“GE Capital understood right away what we were trying to do, and has developed an integrated set of financial services that really expands our value to our members. Thexchange had already automated the negotiation and physical delivery services of our marketplace. GE Capital is enhancing the automation of our credit risk management and financial settlement services, completing our end-to-end e-commerce solution,” stated Curt Hockemeier, Arbinet-thexchange President and CEO. “This provides a means for our members to increase network utilization and reduce sales and marketing, operational, bad debt and capital costs at a juncture when telecommunications industry earnings are under heavy siege.”

“Thexchange has been able to develop a very advanced e-commerce application because it has been able to integrate the physical delivery of bandwidth via switching and routing equipment with an online marketplace,” stated Joe Krum, President of GE Capital Commercial Services. “We are delighted to be involved in enhancing the credit risk management and financial settlement services that allows thexchange to safely scale its role as the counter party to all transactions, completing this full-service offering.”

About GE Capital

Through its Commercial Services group (, GE Capital is a leading global provider of working capital financing, accounts receivable risk management, and related back office services to clients in both electronic and conventional business-to-business supply chains.

GE Capital, with assets of more than $345 billion, is a global, diversified financial services company with 28 specialized businesses. A wholly owned subsidiary of the General Electric Company, GE Capital, based in Stamford, Connecticut, provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer products to businesses and consumers around the world. General Electric is a diversified manufacturing, technology and services company with operations worldwide.

About Arbinet-thexchange

Arbinet-thexchange is the full-service, online exchange for on-demand transactions, automated physical delivery and settlement of trades of telephony bandwidth. Thexchange is neutral, favoring neither buyers nor sellers, and allows participants to trade anonymously. Automated delivery is accomplished by employing advanced trading software and a set of patented processes to link the web-based trading platform with carrier-grade telecommunications switching equipment. Arbinet-thexchange handles all invoicing, collection and payment for trades effected on its exchange and provides continuous monitoring and online rating of the service quality of each seller’s network.

Arbinet-thexchange estimates the total global market for telephony bandwidth measured in minutes at $706 Billion in 2000. This market is characterized by both falling prices and a high level of SG&A; expense, which at 25% of revenues is 9% higher than the U.S. corporate average. Use of Arbinet-thexchange’s full-service, automated trading solution helps members cut costs and maintain profitability by providing the opportunity to generate incremental revenues, as well as lowering the cost, risk and transaction time required to complete transactions for telephony bandwidth. For more information, visit Arbinet-thexchange at

120 Albany St. Tower II, Suite 450, New Brunswick, NJ 08901
phone: 732-509-9100, fax: 732-509-9101, website:

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