Rabobank Breaks New Ground with vTraction.com, An E-Commerce Initiative for the Food and Agriculture Industry NEW YORK, Feb. 9 /PRNewswire-Asianet/ -- The Rabobank Group, the leading global bank for the food and agriculture industry, gained important ground today with the announcement of vTraction.com, the world's first e-cooperative -- a business-to-business e-commerce company based on cooperative principles. vTraction.com, created as a distinct independent operating company from Rabobank, will be headquartered in New York. Driven by an operating budget of $100 million (USD) in 2000, vTraction.com will facilitate the development of business-to-business food and agricultural vertical exchanges. As a significant element of its strategy, vTraction.com will work with Rabobank's clients to develop mutually beneficial e-commerce strategies. This cooperative approach will give the vTraction.com family of vertical exchanges the traction, or liquidity, to lead the way in their respective markets. Rabobank -- the only privately held bank to receive the prestigious triple-A rating from Moody's, S&P and IBCA -- was created as a cooperative at the turn of the last century to help the agricultural community reap the financial benefits of a rapidly changing economy. And at the turn of this century, Rabobank is sowing the seeds of success for the food and agriculture e-commerce companies of the new economy. Rabobank has laid the groundwork for vTraction.com to surge to the forefront of food and agricultural e-commerce. Although it is a worldwide organization with $290 billion in assets and over 100 offices in 32 countries, the Netherlands-based bank remains true to its cooperative roots. vTraction.com offers more than capital: it invites Rabobank's clients to participate in vTraction.com, or to co-invest in specific food and agricultural e-commerce ventures. vTraction.com's sister companies and Rabobank affiliates, Gilde and Robeco (Weiss, Peck and Greer) provide venture capital to internet companies. "vTraction.com will cultivate an e-business environment in which its portfolio companies can share expertise and resources, enhanced by Rabobank's know-how to grow," said Jan Groninger, Executive Board member of Rabobank. "This cooperative spirit will enable vTraction.com's partners to emerge as leaders in their respective markets." "Cooperation is critical to gain traction in the new global economy," said Ejnar Knudsen, CEO of vTraction.com. "It will create added value for Rabobank's clients by making strategic alliances with cream of the crop internet solution providers in the food and agriculture industry." These alliances will include business-to-business food and agriculture internet companies, from e-consulting firms to market exchanges and post transaction service providers. The businesses will be supported by Rabobank's extensive array of financial services, products and research. Co-investors will include, food and agricultural companies, other financial institutions and key strategic partners. vTraction.com has already established solid ground in the e-commerce world by forming alliances with cutting-edge food and agriculture e-commerce companies, such as agribiz.net, Foodtrader.com, TradingProduce.com, FBiX.com, Farms.com and eHARVEST.com. The details of these partnerships will be announced in the coming weeks. Rabobank forecasts that over $400 billion of the annual $4 trillion global commercial food and agriculture market will be traded online in vertical markets within the next few years. By paving the way for food and agriculture e-commerce, vTraction.com expects to capture a significant portion of this e-trading and attract the dominant players in their respective markets. In the spirit of the new e-conomy, vTraction.com, is structured to allow for a future public offering. In the meantime, vTraction.com continues to make inroads around the world. Beginning in April, vTraction will host a worldwide roadshow to explore these e-commerce cooperative alliances. To register your company's interest in attending, please visit our Web site at: http://www.vTraction.com. Rabobank International: The know-how to grow Facts of interest *Founded 100 years ago in The Netherlands; began as a cooperative by the agricultural community to solve their financial needs. *The world's largest financial institution specializing in the food and agriculture industry. *Rabobank's financial health and stringent risk control have earned the bank the coveted triple-A rating from Moody's, S & P and IBCA, the top three rating agencies. This makes Rabobank unique in the world of commercial banking. *100 offices in over 32 countries; headquarters in Utrecht, The Netherlands. *Over 500 member banks in The Netherlands. *$290 billion in assets. *Primary customer market is the food and agribusiness industry; has increased its presence in the healthcare sector and global financial markets. *Provides corporate banking, corporate finance and investment banking services, as well as food and agricultural research (FAR), a global knowledge management network. *The Rabobank Group provides services to almost 500 autonomous local banks which make up the Rabobank cooperative, as well as these specialist companies: De Lage Landen (leasing and trade finance), Interpolis (insurance), Robeco (asset management-50% Rabobank owned), Gilde Investment Management (venture capital), Schretlen & Co. (private banking), Rabobank International and International Private Banking and Trust. *On January 1, 2000 the Rabobank Group joined the World Business Council for Sustainable Development (WBCSD), an international network which brings together 120 companies in more than 30 countries. vTraction.com: paving the way for food and agriculture e-commerce Facts of interest *VTraction.com is the food and agriculture internet strategy vehicle for The Rabobank Group. *Corporate head office for vTraction.com: New York City. *Ejnar Knudsen, CEO of vTraction.com. *Initial operating fund: $100 million. *VTraction.com has made strategic alliances with e-commerce companies agribiz.net, Foodtrader.com, TradingProduce.com, FBiX.com, Farms.com and eHARVEST.com. *VTraction.com distinguishes itself from traditional venture capital firms by inviting Rabobank clients to participate in vTraction.com, or co-invest in specific food and agriculture ventures. *Will announce Europe and Asia teams in the coming months. SOURCE The Rabobank Group CONTACT: Jan Dost, Senior Press Officer of Rabobank, +0031-30-2162411, or [email protected], or, Terese Engolz of vTraction.com, Media Relations, 212-808-6923, or [email protected] Web site: http://www.vTraction.com