JPMORGAN TREASURY SERVICES INTRODUCES NEW INTERNET-BASED PAYABLES DISCOUNTING SERVICE

Corporate Clients to Benefit from Increased Efficiencies in Financial Supply Chain Management

NEW YORK – November 3, 2003 – JPMorgan Treasury Services, a unit of JPMorgan Chase and a leader in global payment, trade and treasury services management, announced today that it will be launching an Internet-based payables discounting service for corporate clients. JPMorgan’s payables discounting program will provide buyers and suppliers with a mechanism to access enhanced value from supply chain financing.

The payables discounting solution brings the benefits of extended Days Payable Outstanding (DPO) for JPMorgan’s corporate clients and reduced Days Sales Outstanding (DSO) for their suppliers. This increased predictability of cash flow is critical to working capital efficiency and will facilitate improved cash flow management for both buyers and sellers.

JPMorgan clients will transmit approved invoices via a newly developed web-based Internet platform. The supplier can receive early payment from JPMorgan, while the client repays JPMorgan on maturity. By leveraging the Internet for supplier connectivity, buyers and suppliers gain a valuable tool for managing cash and information flow along the entire financial value chain.
"Our customers’ growing requirement to move away from letters of credit and other traditional trade methods is stimulating new opportunities for the automation of receivables and payables management," says Bruce Procter, head of global trade services for JPMorgan. "As one of the few banks currently operating in the open account market, JPMorgan is able to meet this demand and offer the right technology for integrated trade and cash management solutions that enables clients to more effectively manage their balance sheets."
JPMorgan’s Web-enabled payables discounting solution will be available for deployment in the U.S. by year-end 2003 and in Europe in early 2004. The program is currently in pilot testing with a major global corporation.

Press Contacts:
John Johmann
JPMorgan Treasury Services
(212) 552-9377
Flavie Lemarchand
PainePR
(212) 613-4922

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