UPS Migrates to Electronic Invoicing with CoSign Electronic Signatures

Petach Tikva, Israel, June 27, 2005

O.P.S.I, an authorized service contractor of UPS in Israel today announced that it has chosen CoSign®, Algorithmic Research's (ARX) electronic-signature solution, to enable the migration from paper-based invoices to electronic invoicing.

Electronic Invoicing is made possible by new tax legislation in Europe and in Israel (EU VAT Directive 2001/115/E and the Israeli Tax Amendment 6245 from June 2003), which accept the creation, sending and archiving of electronic invoices, providing that they are digitally signed according to the local Electronic-Signature legislation.

With CoSign, UPS can now prepare, digitally sign and send electronically thousands of electronic invoices, to their customers, eliminating the high costs associated with paper printing, handling, posting and archiving. Recent studies have shown that a typical organization incurs costs of $1 or higher per paper invoice handling. Migrating from paper to electronic invoicing can lead to annual savings ranging from thousands of dollars to more than $150,000 for organizations that processes 10,000 invoices per month.

Another major advantage of e-Invoicing is the expedited process of payment collection for the accounts receivable department, and the more efficient process of interacting with the Tax Authorities to collect the VAT reimbursement.

UPS Israel's customers can now choose to continue to receive a paper invoice or can elect to get their UPS invoices electronically. In fact, on the first month of production, a larger than expected number of customers surprised UPS by registering to receive their invoices electronically.

CoSign enables organizations to process and sign more than 60 PDF invoices per second. The digital signatures applied to the PDF invoices are standard, highly secure, electronic and graphical signatures. These standard signatures allow the recipient of the invoice to verify the signatures with a standard, free, Adobe Acrobat Reader, which means that no special verification software is required.

“ARX is pleased to provide a electronic-signature solution that enables UPS to transform its expensive manual invoicing system to a paperless and automatic e-invoicing process,” said Ayelet Porat, EMEA Director at ARX. “With CoSign, UPS Israel O.P.S.I eliminate the costs and inefficiencies associated with paper invoicing and at the same time, provides its customers with enhanced customer service and support.”

"UPS Israel prides itself on using innovative IT solutions to differentiate itself from its competitors, improve its customer service, as well as reduce the bottom line," says Eyal Mayo, UPS Israel's Chief Financial Officer. “Migrating to e-invoicing with ARX's electronic-signature solution is another example of a providing UPS Israel with a competitive advantage."

UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at www.UPS.com