University of Texas Health Science Center at Houston Chooses SciQuest's Supplier Enablement Solution to Optimize Procurement

RESEARCH TRIANGLE PARK, N.C., January 18, 2005 - SciQuest, Inc. announced today that The University of Texas Health Science Center at Houston signed a multi-year agreement for SciQuest's Supplier Enablement solution, which includes Spend Director. The institution chose to enhance its PeopleSoft system with Spend Director to capture more spend information, increase user adoption of e-procurement and ensure contract compliance. The implementation was completed in less than sixty days.

"This implementation enables us to optimize our existing procurement strategy by connecting end-users directly to our key suppliers," said Michael D. McKinney, M.D., senior executive vice president and COO for the UT Health Science Center at Houston. "As a result, we expect to increase our visibility into spending and have greater influence on the sources for products we buy and prices we pay."

Assistant vice president for procurement Jerry Fuller adds, "We chose SciQuest because of its experience in life sciences and understanding of the higher education market. With the SciQuest solution we expect that we can maximize our user adoption rate allowing us to become paperless in order dispatch and payment processes for our high volume suppliers."

Spend Director provides existing procurement systems with enhanced content and connectivity to increase on-catalog and on-contract spending. As a result spend and transaction visibility is greatly increased.

In addition, SciQuest provides catalog configuration tools that allow procurement professionals to promote and encourage spending with preferred suppliers throughout the organization. Selected products are placed in a "shopping cart" which is returned to your requisitioning system for approval routing and order placement. Benefits include:

• Encourages the use of available inventory
  
• Increases on-contract spending
  
• Improves requisition accuracy and efficiency
  
• Increases spend visibility
  
• Helps drive user adoption and satisfaction with your procurement system
  
• Reduces internal catalog and punch-out costs

"More higher education institutions are realizing that supplier enablement is key to optimizing their strategic procurement initiatives," said Stephen Wiehe, president and CEO of SciQuest. "SciQuest is in a unique position to provide these institutions with the entire source-to-settle solution or simply integrate into their existing ERP system in order to provide them with a greater return on their investment."

About SciQuest
SciQuest's on-demand solutions integrate organizations with their suppliers to enable comprehensive spend management for the life sciences and higher education markets.

SciQuest's complete suite of modular applications help to automate the source-to-settle process. When used with the SciQuest Supplier Network, these solutions reduce redundant tasks and maintain data integrity throughout the cycle of finding, acquiring and managing goods to increase efficiency, reduce cost and provide total spend visibility.

Many of the world's leading pharmaceutical, biotechnology, chemical and academic organizations rely on SciQuest solutions such as Biogen Idec, GlaxoSmithKline, Pfizer, Roche, Schering-Plough, Arizona State University, Indiana University, University of Michigan and University of Pennsylvania. SciQuest is headquartered in Research Triangle Park, NC. For more information about SciQuest, please visit www.sciquest.com or call +1-919-659-2100.

About University of Texas Health Science Center at Houston
The most comprehensive academic health center in the Southwest, The University of Texas Health Science Center at Houston is home to six schools devoted to medicine, nursing, public health, dentistry, health informatics and graduate studies in biomedical science. In addition to the Brown Foundation Institute of Molecular Medicine for the Prevention of Human Diseases (IMM), other components are the UT Harris County Psychiatric Center and the Mental Sciences Institute. The UT Health Science Center at Houston, founded in 1972, is a component of the University of Texas System. It is a state-supported institution whose state funding is supplemented by competitive research grants, patient fees and private philanthropy. See: http://www.uthouston.edu/

SciQuest and SelectSite are registered trademarks of SciQuest, Inc. HigherMarkets is a trademark of SciQuest, Inc.

Contacts:

Media Relations

Kristi Lee
SRK Communications
919-270-8054
kristi@srkcommunications.com