18 December 2003

Tecnomatix and Major Auto Manufacturer Enter Four-Year Global Agreement With Expected Revenues of Over US$50 Million

HERZLIA, Israel -- Dec. 18 -- Tecnomatix Technologies Ltd. (Nasdaq: TCNO), the driving force in Manufacturing Process Management (MPM), announced today a global agreement with a major automotive manufacturer. The agreement to implement Tecnomatix MPM solutions throughout the customer’s manufacturing operations worldwide represents an expansion of an existing relationship with this manufacturer and is expected to generate total revenues in excess of US$50 million over the next four years. Under the agreement, the manufacturer will purchase Tecnomatix eMPower software, services and maintenance, including the eM-Planner product suite, a comprehensive set of applications for manufacturing process planning, simulation, and design and production validation. According to the agreed-upon framework, purchase volumes are expected to increase gradually during the early stages of the agreement, accelerating as deployment ramps up. "This is the most extensive agreement in the history of Tecnomatix. It addresses all of our customer’s manufacturing disciplines worldwide, and firmly establishes Tecnomatix as the global leader and driving force in MPM solutions," said Harel Beit-On, Tecnomatix chairman and CEO. "Tecnomatix has the expertise and technology to support an implementation of this scale. We have the right vision for MPM and the proven ability to execute on that vision." Beit-On continued, "Tecnomatix has been working with this customer on several implementations over the past few years, and we have been able to deliver significant value during that time. Our eMPower solutions have reinforced their global virtual manufacturing programs and key enterprise strategies, including flexible manufacturing, digital process validation, capital asset reuse, and the alignment of product and process development. We continue to gain momentum with the world’s leading manufacturers as they recognize the invaluable manufacturing efficiencies and cost benefits of implementing our eMPower solutions throughout the enterprise. Tecnomatix has always been a pioneer in the virtual manufacturing and process planning domains, and this agreement solidifies our position as the leader in the multi-billion dollar MPM market."

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