Procter & Gamble and NineSigma, Inc. Announce Strategic Relationship

CINCINNATI and CLEVELAND, OH - March 19, 2003 - NineSigma, Inc., a Cleveland-based innovation sourcing firm, and The Procter & Gamble Company (NYSE:PG) announced today a strategic relationship to support the acceleration of P&G’s "Connect and Develop" strategy.

Renowned as one of the world’s most innovative companies, P&G is now applying those skills to the innovation process itself. Implementing its leading edge "Connect and Develop" strategy, P&G has announced a goal of accessing 50% of its new ideas, technologies, and products from external sources. A key element in this open innovation strategy is the effective utilization of the Internet to match technical needs with the right innovators around the world who have technology solutions and "ready-to-go" products that P&G can utilize.

NineSigma is one of the leading companies in the field of innovation sourcing. Through its proprietary Internet-based Managed Exchange (M:X™) process, NineSigma delivers connections to sources all over the world to meet its clients’ most challenging needs. In the past 18 months, P&G and NineSigma have worked together to find solutions and opportunities across P&G’s global business units.

"This agreement is another example of P&G’s strategy to drive innovation and growth by accessing external capabilities," said P&G’s Chief Technology Officer, Gil Cloyd. "NineSigma can link us to solutions that are more cost efficient, give us early access to potentially disruptive technologies, and facilitate valuable collaborations much faster than we imagined."

Mehran Mehregany, Chairman and Founder of NineSigma stated, "Three years ago I founded NineSigma with the belief that the Internet could be used to match technology innovators with the companies best positioned to exploit those innovations. P&G’s embrace of the NineSigma approach and their success in using our tools is a powerful validation of that original premise."

Under the strategic relationship agreement, P&G and NineSigma will jointly advocate the benefits of "open innovation networks" and encourage more global participation. P&G has entered into a two-year services contract and committed key resources in return for the ability to participate in NineSigma’s long-term success.

"By utilizing NineSigma’s unique process, we can be more proactive in accessing the tremendous innovation assets and ideas that exist outside of Procter & Gamble," said Milan Jevtitch, P&G's e-R&D leader. "NineSigma’s experience and access to researchers and companies will expand our ability to tap into new, breakthrough technologies and product opportunities around the globe."

"We have enjoyed a successful relationship with P&G for more than a year", says Dr. Donald Anthony, President and CEO of NineSigma. "This new, expanded relationship will allow us to provide even greater value to P&G as our customer."

About P&G

P&G markets nearly 300 brands to five billion consumers in 160 countries. P&G makes a significant annual investment in developing and improving its products — leading the way in R&D globally among consumer products companies. P&G’s External Business Development and Global Licensing organization is charged with ensuring the company maximizes the value of its ‘treasure trove’ of technologies by selling, licensing and, in some cases, donating these technologies. The unit is also responsible for licensing select P&G brand trademarks. For more information on licensing P&G technology, go to www.pgtechnologytransfer.com .

About NineSigma

NineSigma is a global leader in helping companies develop Open Market Innovation programs through its proprietary M:X™ process. NineSigma serves a number of world-class clients in industries including automotive, biomedical, chemical, consumer products, defense, electronics, pharmaceutical, and telecommunications. Utilizing Ph.D.-level program managers, web-based tools, and a continually updated database of global providers, NineSigma matches technology seekers with innovative solutions faster, more effectively, and at a lower cost than conventional means.

For More Information:

  P&G Contact:
  Martha Depenbrock (513) 983-5366

  NineSigma Contact:
  Bronwyn Monroe (216) 295-4822
  Marketing Manager