Augment Systems and Shira Computers Ink Agreement; Firms to Market Integrated Solutions Internationally.

ATLANTA--(BUSINESS WIRE)--Feb. 18, 1998--Augment Systems, Inc. (NASDAQ Small Cap:AUGS) and Shira Computers Ltd. of Kfar Saba, Israel, have entered into a cooperative marketing agreement that allows each company to market, sell and support integrated solutions for digital prepress workflows based on complementary Augment and Shira products.

Both Shira and Augment design, manufacture and sell products that individually provide significant workflow and performance benefits to the prepress segment of the graphic arts industry. Shira develops and markets Windows NT-based workflow products that enable and enhance data processing and workflow management. Augment delivers an advanced file server coupled with Fibre Channel technology that provides high speed storage, management, and transfer of data.

The non-exclusive agreement, announced at the annual Heidelberg Digital Imaging Association meeting in Atlanta, allows each company to identify and engage in a variety of cooperative marketing activities. These marketing efforts will be aimed at graphic arts prepress users in international markets in which both companies sell, service and support products. Such users include design and advertising agencies, prepress service providers, publishers and commercial and in-plant printers.

Product performance testing to determine the optimum specifications for the companies' first integration solution will begin this week. Other solutions with different product combinations may follow at a later date.

According to Augment and Shira representatives, an integrated prepress workflow solution that combines Shira's workflow management tools with the Augment AFX 410 file server will deliver a significantly higher level of performance and value for the prepress user than any of the companies' products operating alone.

"The same synergy resulting from combining our AFX 410 with Shira's workflow products applies to the marketing efforts of both companies," said Colin Murphy, Vice President of Sales and Marketing at Augment. "This agreement is designed to generate marketing benefits, competitive advantages and a level of sales activity that neither company could easily achieve working individually."

The cooperative marketing agreement applies to countries in which either company has sales and marketing facilities, and where both have distribution facilities and an active technical and applications support organization. "Focusing sales in regions where both companies can provide effective customer support will maximize the efficiency of our collective sales and marketing efforts and should ensure the integrity of every installation," said Rami Krispin, President and CEO of Shira Computers. Countries meeting these requirements in the Americas are the US, Canada and Mexico; and in Europe: Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom.

The integrated solutions resulting from the agreement will be demonstrated at facilities of both companies. Shira demo centers are located at Shira Computers Ltd. in Kfar Saba, Israel; Shira Inc. in Arlington, VA; and Shira Europe B.V. in Woerden, The Netherlands. Augment demo centers include headquarters in Westford, MA; Augment Systems' sales office in Seal Beach, CA; and Augment Systems Europe in Brussels, Belgium.

Augment Systems Inc. is a leader in the development of Storage Area Networking solutions for the management of large image and data files. Founded in 1990, the company pioneered the development and integration of cross platform, high performance file serving with Fibre Channel-Arbitrated Loop technology, resulting in a new paradigm for the storage and transfer of large files. The company's initial target markets are the electronic publishing, digital photographic editing and geographic information systems (GIS) markets. Additional information about Augment is available from their Web site (http://www.augment-systems.com).

Shira Computers Ltd. provides workflow management, DBMS and integration solutions for the graphic arts industry. Shira's NT-based line of products spans the full range of digital production needs, enabling users to control their workflow from design and image processing through proofing, RIP and output, using distributing archiving and remote communications. Additional information about Shira is available from their Web site (http://www.shira.com).

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Augment is a trademark of Augment Systems, Inc. All other brand names, trademarks, and registered trademarks are the property of their respective owners.

CONTACT: Augment Systems, Inc.

Doug Gowell, 978-392-8626

or

Shira Computer, Ltd.

Gadi Shoshan, 011-972-9764-6223

or

Hebert Communications

John Hebert, 617-232-1161