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RAFFLES INTERNATIONAL LIMITED CONSOLIDATES PURCHASING OF GLOBAL CHEMICAL CLEANING SERVICES

14 June 2002

Raffles International Limited will achieve significant savings in global chemical costs for the next five years by consolidating its purchasing through a single global contract negotiated by hospitalitybex pte ltd, Singapore's largest hospitality e-procurement operator, with JohnsonDiversey Inc. JohnsonDiversey is a new company that unites Johnson Wax Professional and DiverseyLever to provide a single source of quality cleaning and hygiene products and solutions, and will provide chemical cleaning services in the areas of laundry, housekeeping and stewarding to Raffles International hotels and resorts worldwide, in 33 destinations across six continents. 

Through the portal's demand aggregation and workflow management purchasing platform, hospitalitybex is able to achieve synergies and efficiencies that will translate into more cost savings for all parties concerned. 

To date, hospitalitybex has driven significant cost savings of S$3.6m for its user organisations, through economies of scale with major suppliers and service providers. 

Since hospitalitybex was formed in June 2000, it has generated the highest throughput in purchase transactions, by implementing proven strategies to contribute to overall bottomline. Unlike many international e-procurement implementations, hospitalitybex is able to provide highly profitable economies of scale by comprehensively covering every fundamental aspect of purchasing, as well as applying digital technology. 

"These significant savings are an indication of the success of our e-procurement system. We anticipate that we will derive even more savings in the near future for our hotels and resorts as we grow our network," says Mr Simon Yong, Senior Vice President, Technical Services, Raffles International Limited and Chairman, hospitalitybex pte ltd.

About Raffles International 

Raffles International Limited, formed in 1989, is a name well respected in the industry for its standards of quality, award-winning concepts and innovative approach towards hotel management. 

Raffles International's hotels and resorts are marketed under a two-tiered brand structure. The "Raffles brand" hotels distinguish themselves by the highest standards of products and services available in major cities on an international level. The "Swissôtel" and "Merchant Court" hotels offer quality accommodation and the full range of modern facilities and amenities expected by today's discerning traveller, with an emphasis on quality and comfort. Many hotels in the Raffles International portfolio have been voted top hotels in the world. 

These include the legendary Raffles Hotel Singapore, Brown's Hotel London, Hotel Vier Jahreszeiten Hamburg, Raffles L'Ermitage Beverly Hills and Le Montreux Palace. Raffles International also operates Amrita Spa, the largest spa network in Asia and the SpaAcademy, Singapore's premier spa education and skills training institute. The Raffles International Training Centres in Singapore and Phnom Penh offers training programmes for the hospitality and service industry. 

About Raffles Holdings and CapitaLand

Raffles International Limited is the hotel management subsidiary of Raffles Holdings Limited. Raffles Holdings Limited's portfolio comprises hotels and resorts in 33 destinations across the six continents of Asia, Europe, North America, South America, Australia and Africa. Raffles Holdings is a subsidiary of CapitaLand Limited. Both companies are listed on the Singapore Stock Exchange.

CapitaLand is one of the fastest growing listed property companies in Asia. CapitaLand's diversified big interests cover commercial and industrial buildings, residential, serviced residences, hotels and hospitality, property funds, real estate financials and property services. Headquartered in Singapore, the multinational company has property, hospitality and property related products and services spanning more than 50 cities.

About hospitalitybex

Incorporated in June 2000, hospitalitybex pte ltd embarked on a mission to spearhead the operating of procurement facilities for the hospitality and service industry operators. Being the first mover in this dynamic environment, hosiptalitybex has sustained its growth since its inception through proven business models. 

Managed by Raffles International Limited, hospitalitybex combines the power of industry domain expertise and digital technology to operate the intergrated online procurement solution that enables hospitality and service organisations to achieve cost savings, process efficiencies and reinforced business intelligence across the entire supply chain. It is a one-stop destination that offers product and service sourcing, negotiation, selection, ordering, fulfillment and analysis reporting, resulting in enhanced value for all market professionals in the community.

Since its implementation, hospitalitybex has amassed an impressive global portal community of over 4000 organisations. It has driven significant cost savings for its user organizations of over S$1million in 2001 and forecast of S$3.6 million in 2002.

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