Internet Exchange

Nortel Networks Corp., IBM Corp., Matsushita Electric Industrial Co. and five other companies unveiled an Internet market for computer and telecommunications products that could cut their supply costs as much as 15%. Computer makers and suppliers will sell and buy electronic products and services on the exchange, called E2open.com. The venture will be independently operated by managers selected by investors Crosspoint Venture Partners and Morgan Stanley Dean Witter & Co. The founding electronics companies will own 50%, and Crosspoint and Morgan Stanley, 20% each. The remaining 10% will be owned by I2 Technologies Inc. and Ariba Inc., which will provide software for the site. The exchange, which will begin operations in mid-July, expects transaction volume to total $1 billion in the first year of operation.