SOURCE: Sabrix, Inc.

February 26, 2008 08:07 ET

Ultra International Scales E-Commerce Initiative Relying on Sabrix Managed Tax Service's Trusted Tax Platform

Managed Service Delivers $60,000 Annual Sales and Use Tax Compliance Cost Savings

SAN RAMON, CA--(Marketwire - February 26, 2008) - Sabrix, Inc. a leading provider of transaction tax management for companies of all sizes, announced today that Ultra International, a provider of all-natural consumer products, is using Sabrix Managed Tax Service (MTS) to support the sales and use tax compliance needs of their growing e-commerce channel, Ultra eStore (www.myultraestore.com). Sabrix MTS, an outsourced sales and use tax service managed by highly skilled tax professionals on an industry-trusted platform, manages Ultra eStore's complete compliance needs across all 50 states, delivering an estimated annual cost savings of $60,000 and allowing Ultra's executives and staff to focus on growing the business.

In July 2007, 20-year old Ultra International launched Ultra eStore, a direct-to-consumer e-commerce channel for its popular, all-natural home and personal care products. From previous experience, Ultra's management knew the difficulties of dealing with complex and fast-changing state tax laws and the pain and expense of tax audits. And with individual distributors opening eStores around the country, sales tax nexus was quickly created in all 50 states, making sales tax management a significant challenge.

"To cost-effectively launch our direct-to-consumer division, we didn't want to invest in hiring specialized tax employees or to create an IT infrastructure to manage sales tax. At the same time, we needed to have complete confidence in our methods," said Lance Baker, vice president, Ultra eStore. "We sought a proven partner that could offer the combination of people, technology, and processes to ensure tax compliance across the U.S. at a lower cost and higher degree of accuracy than we could manage internally."

After a thorough evaluation of market alternatives, Ultra eStore selected Sabrix MTS, an end-to-end outsourced sales and use tax service that addresses the complete tax management process, from address validation and tax rate maintenance, determination and calculation to return preparation, including audit research and documentation. Sabrix MTS functions as an extension of a customer's finance department, combining on-demand tax management software and tax research with a dedicated team of tax professionals and best practices to minimize the hassle and reduce the costs of tax compliance while limiting audit exposure.

"What attracted us to Sabrix MTS is that we could hand over the entire transaction tax process to their tax professionals while we focus on growing our new business," said Baker. "It is the most affordable way we found to get our tax processes covered with the assurance and review of professional tax experts. With Sabrix we've expanded into all 50 states and they've ensured that we stayed compliant every step of the way."

In addition to these general benefits, Baker says that Ultra has also realized the following bottom line results and business process improvements:

--  Trusted tax intelligence -- With Sabrix MTS, Ultra benefits from the
    combination of tax intelligence from Sabrix multi-disciplinary tax
    professionals, complete tax process management, as well as SAS 70 certified
    tax research for 13,253 tax authorities.
--  Low cost of compliance -- Ultra does not have to trade-off compliance
    costs with audit risks, but now benefits from the best of both worlds.
    Ultra has the highest degree of accuracy and a lower risk of audit exposure
    at a more affordable cost than if they hired internal personnel to manage
    it.
--  Seamless scalability supporting rapid growth -- Since implementing
    Sabrix MTS, Ultra's online business has scaled seamlessly and is allowing
    the finance team to focus on more strategic activities without worrying
    about sales tax processes or having to add sales tax-savvy accounting
    staffers.
    

Sabrix MTS is available as a subscription service, allowing companies to pay based on their usage. More customer case studies and other information are available online: http://www.sabrix.com/managedtaxservice.

About Sabrix

Sabrix, Inc. is a leading provider of transaction tax management for companies of all sizes, enabling finance, tax, and IT professionals to achieve accurate, timely, and cost-effective compliance for sales tax, use tax, Value Added Tax (VAT), excise tax and industry-specific taxes and fees. The Sabrix Application Suite serves global enterprises such as Amazon.com, BASF, Cisco, DTE Energy, IBM, QUALCOMM, Sportsman's Warehouse, and York International. The Sabrix Application Suite seamlessly connects to all financial applications requiring the determination, calculation, and recording of transaction taxes. The company also offers the Sabrix Managed Tax Service™(MTS), an outsourced transaction tax compliance service that helps finance departments of small-and-medium-sized businesses eliminate the hassle, control their audit exposure, and reduce the total cost of sales tax, use tax, and VAT compliance. Sabrix MTS seamlessly integrates with a company's existing accounting and e-commerce systems, and, similar to outsourced payroll services, operates as a trusted extension of a company's finance department to address tax compliance from start to finish: address validation, tax rate maintenance, tax determination and calculation, returns preparation and filing as well as audit research and documentation. For more information, please visit www.sabrix.com.

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