Press Release: March 27, 2001

WR Hambrecht + Co Initiates Coverage of FreeMarkets (FMKT) with a Buy Rating and a Price Target of $20

San Francisco, CA, March 27, 2001—WR Hambrecht + Co today initiated research coverage on FreeMarkets (FMKT) with a Buy rating and a price target of $20. WR Hambrecht’s eMarkets/Portals analyst Derek Brown cites FreeMarkets’ proven track record of success, predictable revenue model, and attractive valuation as reasons for the recommendations. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“We believe that FreeMarkets has built a “better mousetrap” and is quickly becoming a primary agent of change in the $4-6 trillion direct goods procurement market. The company’s growing auction volumes and history of delivering real, quantifiable value to its blue-chip customer base are testaments to this fact,” Brown said.

Brown estimates that FreeMarkets will generate total revenue of $174.7 million and cash EPS of ($0.75) in 2001. In 2001, Brown expects the company to deliver total revenue of $283.1 million and cash EPS of $0.32, with breakeven achieved in Q1:02.

FreeMarkets, Inc. leverages its market-making expertise and proprietary technology to create business-to-business online markets for the procurement of industrial parts, raw materials, commodities and services.