September 25, 2002

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

White Plains, NY and Alpharetta, Georgia, USA, Sept. 26, 2002 -- IBM and MAPICS, Inc. (Nasdaq/NM: MAPX) today announced they have signed 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 the companies that constitute this vertical 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.

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