Audi AG Deploys Tecnomatix eMPower Solutions to Support Award-Winning Logistics Planning System

HERZLIA, Israel--()--Nov. 18, 2003--

  Extends MPM Environment to Manage Planning Tasks, Improve Quality and Reduce Costs in Car Body and Tooling Operations  

Tecnomatix Technologies Ltd. (NASDAQ: TCNO), the driving force in Manufacturing Process Management (MPM), announced today that Audi AG, the German automotive manufacturing giant, has implemented an innovative logistics planning solution - Virtual Logistics (ViLog) - based on Tecnomatix eMPower(TM) solutions for MPM, including eM-Planner and eM-Reports. These solutions fully integrate with Audi's existing eMPower-based MPM environment, which has set the standard in automated automotive manufacturing.

Before creation of the new ViLog system, logistics planning data was distributed among several small applications, and the management of this disparate data, new parts data and the generation of reports was very time-consuming. ViLog reduces planning efforts by offering a standard, multi-use solution that provides precise logistics planning from the earliest stages. eM-Planner handles the data management and provides the basic planning functionality, complemented by ViLog's special logistic planning functions and user interfaces. For extended logistics planning reporting, Audi uses eM-Reports to generate 19 different logistics reports.

The ViLog system increases the transparency of the planning process and provides an accurate review of project status. It allows for more detailed planning and control of logistics processing times, costs (external and internal transport, handling etc.) and space requirements. Potential for optimization can be identified in very early phases, helping to reduce the required resources and the corresponding cost.

Audi's ViLog has recently been granted an e-log@istics award by the Just in Time Automotive Working Group (AJK). This award recognizes innovative concepts and solutions for logistics and logistical e-business solutions for applications in product development, production, distribution and disposal. The Audi ViLog logistics solution was recognized for its innovation, value, ease of use, improvements to the process chain and its integration with other applications.

"The development of our eMPower solution is a strategic project that enables us to manage complex planning tasks, improve planning quality and reduce costs," said Andreas Rapp, head of Logistics Planning A3 at Audi. "Our new ViLog logistics planning solution is a key component of our MPM environment and its recognition by a neutral organization such as the Just in Time Automotive Working Group underscores its importance as an innovative solution that will lead us into a new dimension of virtual production."

In addition to the logistics planning solution, Audi has been using Tecnomatix eM-Planner for process planning in several Car Body and Tooling projects. eMPower applications now in use in Audi's MPM environment include eM-Planner, eM-Reports, eM-Workplace, and eM-Plant.

"Our collaboration with Audi in the development of a logistics planning component to their MPM implementation shows what can happen when technology and industry leaders work together," said Harel Beit-On, chief executive officer and chairman of Tecnomatix Technologies. "Audi's award-winning ViLog solution demonstrates the breadth of our eMPower offering, as well as the economies and efficiencies that MPM strategies bring to the automotive manufacturing industry."

About Tecnomatix Technologies

Today's leading global manufacturers are adopting Tecnomatix eMPower solutions for MPM to expand revenue potential and reduce costs by accelerating product introductions, shortening time to volume, and optimizing production execution. eMPower enables our customers to succeed with its collaborative, open platform and applications for defining, simulating, managing, and executing manufacturing processes across the extended enterprise. For more information, please visit www.tecnomatix.com.

This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the Company's plans, objectives and expected financial and operating results. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, market demand for Tecnomatix products and services, long sales cycles, new product developments, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchange Commission. Tecnomatix undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Company Contact:
Tecnomatix Technologies Ltd.
Bill Siegel, 603-672-3019
bsiegel@tecnomatix.com
or
Investor Contact:
The Ruth Group
David Pasquale, 646-536-7006
dpasquale@theruthgroup.com
or
Media Contact:
Topaz Partners
Todd Van Hoosear, 781-388-7900 ext. 209
tvanhoosear@topazpartners.com

Contacts

Company Contact:
Tecnomatix Technologies Ltd.
Bill Siegel, 603-672-3019
bsiegel@tecnomatix.com
or
Investor Contact:
The Ruth Group
David Pasquale, 646-536-7006
dpasquale@theruthgroup.com
or
Media Contact:
Topaz Partners
Todd Van Hoosear, 781-388-7900 ext. 209
tvanhoosear@topazpartners.com