IBM and MAPICS Inc. Form Strategic Alliance to Deliver Collaborative Business Applications To Mid-Market Manufacturers

WebSphere-based Solutions to Improve Collaboration for Manufacturers in Electronics, Automotive, Heavy and Industrial Equipment

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White Plains, NY & Alpharetta, Georgia, USA - 26 Sep 2002: IBM and MAPICS, Inc. (Nasdaq/NM: MAPX) today announced a strategic alliance to deliver solutions that tightly integrate business functions and improve collaboration between suppliers and customers. The IBM/MAPICS solutions will target mid-market manufacturers in the electronics, automotive, heavy equipment and industrial equipment industries.

Industry analyst firm Gartner, Inc. estimates that the enterprise solutions market -- with customer spending of almost $24 billion at the end of 2001-- will grow to just under $33 billion by the end of 2005, a compound annual growth rate (CAGR) of 4.4 percent. Gartner also believes that manufacturing industries hold the most interest in ERP initiatives, as these companies are constantly looking for means to reduce costs and increase operational efficiencies in the face of increased global competition.

Combined IBM and MAPICS solutions help to increase return on investments in hardware, software and training, and improve the speed and quality of total business integration by removing operational impediments and facilitating the implementation of effective business processes. With a scalable infrastructure from IBM and flexible enterprise software solutions from MAPICS, organizations can better integrate their business operations by rapidly bringing innovative products to market, meeting the trends of globalization and specialization, facilitating a collaborative supply chain and ensuring regulatory compliance.

MAPICS Enterprise Solutions on IBM eServer iSeries* hardware, WebSphere* Application Server, WebSphere MQ, and IBM Business Innovation Services are currently used by some of the world's leading manufacturers, such as Volvo, Bayer, Pemstar, and Mitsubishi Caterpillar Forklift Europe (MCFE).

"This is great news," said Al Berning, CEO of Pemstar, a global contract manufacturer specializing in engineering, manufacturing and fulfillment services. "Both IBM and MAPICS have been long-term contributors to our success. The strategic alliance between IBM and MAPICS is sure to result in even stronger solutions that create world-class manufacturers like Pemstar."

Another world-class manufacturer running its MAPICS solution on the IBM iSeries is MCFE, producer of forklifts under the names Mitsubishi and Caterpillar. With MAPICS' iSeries solution, MCFE decreased inventory with its three major suppliers by 85 percent, reduced its own on-hand inventory by $10.1M and decreased its number of vendors by 10 percent, significantly reducing its total number of purchased items.

"Our MAPICS solution has enabled us to dramatically streamline many of our business operations and to better collaborate with our entire supply chain," said Robert Vleeschhouwer, information technology manager, MCFE. "We never imagined receiving such a quick return on our investment."

Under the terms of the strategic alliance, MAPICS and IBM will jointly market MAPICS enterprise solutions, which include applications focused on addressing the major challenges facing manufacturers today, including:

These value-based applications are supported by IBM WebSphere Application Server and WebSphere MQ operating on IBM eServer iSeries and xSeries* hardware. IBM will also provide consulting, customization and integration services for joint IBM and MAPICS implementations.

MAPICS is one of the first enterprise application providers to support the LINUX environment running on the IBM iSeries platform. MAPICS is well aligned with IBM's strategy to further accelerate the adoption of Linux-based solutions and intends to fully support solutions developed by Red Hat.

"Manufacturing companies are looking to see how total e-business solutions can improve operations and reduce costs," said Marc Lautenbach, IBM General Manager for Global Small and Medium Business. "MAPICS' enterprise applications combined with IBM's software infrastructure and hardware, as well as our consulting and integration services, provide a total solution for manufacturing institutions who want to increase efficiencies and better serve their customers."
"IBM has consistently offered the innovative technologies needed to support integrated e-business," said Dick Cook, president and CEO of MAPICS. "These technologies are crucial to our customers' ability to deploy mission-critical e-business offerings. We offer many e-business solutions based on IBM technology, and feel the evolution of our business relationship with IBM into a strategic alliance provides us with a unique opportunity to provide significant value to our global customer base."

A history of working together
MAPICS Inc. has had strong relationships with IBM iSeries since its inception. Today's announcement enhances this relationship, allowing IBM and MAPICS the ability to jointly deliver complete solutions, including hardware, software and services to customers.

The IBM/Mapics strategic alliance is another example of IBM's commitment to go-to-market with leading independent software vendors. Under this initiative, IBM is targeting industries such as financial services, legal, healthcare and manufacturing, and solution segments including enterprise resource planning, supply chain management, customer relationship management and business intelligence. The goal is to provide developers with access to new customers and revenue opportunities through IBM's marketing, sales, and solutions resources. In return, developers commit to lead with IBM's middleware, server platforms, and services.

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