Akzo Nobel Chooses Formation Systems' Optiva; Will Integrate Product Development Software Throughout the Organization.

Business/Technology Editors

SOUTHBOROUGH, Mass.--(BUSINESS WIRE)--May 17, 2000

Akzo Nobel, a leading producer of paints, finishes, stains, and synthetic resins, has licensed Formation Systems Optiva for its entire coatings operations of 9 Business Units worldwide. This represents a major expansion of the agreement signed last year to implement Optiva, Formation System's enterprise product development software, in its Industrial Finishes and North American Industrial Coatings Units.

Akzo Nobel will now extend Optiva's implementation throughout its coatings organization, the largest coatings manufacturer in the world, to accelerate its product development processes and to create a more unified product development environment for all of the autonomous paint and coatings business units.

"With more than 100 operations around the world, we need tools which can be used throughout our organization. Optiva is expected to be such a tool, a calculation engine for paint formulations which can be used with our large variety of databases," said J.D. Remijnse, Group Director Coatings of Akzo Nobel. "In this way we expect to realize synergy between our operations while maintaining our decentralized structure."

"Leading paint and coating organizations such as Akzo Nobel are facing intense shareholder pressure to achieve stronger growth and increased market value," said Peter Shields, president and CEO of Formation. "Delivering new products to customers -at a competitive price--when they want them, is key to growing profits and increasing shareholder value. One of Optiva's strengths is its flexibility and robust IT infrastructure. It can be easily adapted to support Akzo Nobel's business goals, creating a common development platform for all of its units, while maintaining the autonomy of each. Optiva will give Akzo Nobel the needed flexibility and synergy to respond nimbly and quickly to constantly changing market conditions and customer needs."

Akzo Nobel selected Optiva software because of its global market leadership, advanced technology architecture, robust functionality and extensive scalability. It required Optiva's advanced functionality and flexibility to more efficiently manage product development and better leverage its intellectual capital. The Optiva solution will give Akzo Nobel the ability to develop more products in less time and at lower cost and higher quality.

In addition to Akzo Nobel, other Formation Systems customers include large global fortune 500 companies such as GE Plastics, RPM, The Valspar Corporation, The Coca-Cola Company, Gillette, The Limited, The Kerry Group and The Hartz Company.

About Akzo Nobel

Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 1999 (excluding Acordis) totaled some EUR 12 billion (USD 13 billion, GBP 8 billion.) In the beginning of 2000, the Company employed 68,000 people in 75 countries.

About Formation Systems

Formation Systems develops and markets Optiva, a suite of software that helps large, global-based manufacturers accelerate their product development process. Formation's solutions offer customers high return, low risk and quick time to benefit. Formation's value proposition is to help customers serve their customers better by bringing more products to market faster, at lower cost and with higher quality.

Optiva is used by formula-based manufacturers in a variety of industries, including paints and coatings, cosmetics and personal care, consumer packaged goods, food and beverage and specialty chemicals. Formation's software has been recognized by Industry Week as one of the top 25 Technologies in its annual recap, and has received the Achievement Award from Food Processing magazine.

The company, founded in 1995, is privately held and headquartered in Southborough, MA. For more information on Formation, visit the corporate web site at www.formationsystems.com.

Optiva and Formation are trademarks of Formation Systems Inc., Southborough, Massachusetts, USA.