Automotive Supplier Hella to Implement Tecnomatix eMPower Solutions Globally.

HERZLIA, Israel -- German Tier 1 Supplier Starts To Roll Out World's Leading Manufacturing Process Management Solution Across Its Manufacturing Facilities Worldwide

Tecnomatix Technologies Ltd. (NASDAQ:TCNO), the driving force in manufacturing process management (MPM), today announced that automotive Tier 1 supplier Hella KG Hueck & Co., one of Germany's largest industrial companies, will roll out eMPower MPM solutions from Tecnomatix across all of its manufacturing facilities worldwide.

The contract includes licenses for and support of the Tecnomatix eM-Planner and eM-Engineer products. Hella is expected to achieve higher planning quality and faster ramp-ups as a result of its global rollout to more than 50 manufacturing sites.

"Tecnomatix participated in a comprehensive vendor selection process and won out against some tough competition primarily because of our ability to support the widest range of manufacturing processes in the industry," said Jaron Lotan, president and chief executive officer of Tecnomatix Technologies Ltd. "Our eMPower suite of MPM products offers companies across multiple industries a comprehensive solution for all their process planning needs. In the competitive Tier 1 automotive market, the ability to rapidly respond to changing demands from automotive OEMs requires the kind of flexible and collaborative manufacturing IT infrastructure that Tecnomatix can help provide."

Hella began using eM-Plant from Tecnomatix in 2001 to design, simulate, visualize and optimize key production systems and processes. Adding eM-Planner will help the company implement comprehensive planning, analyzing and manufacturing process management tools throughout the enterprise. And eM-Engineer will provide support for additional capabilities, including parts assembly, human modeling and offline robotics.

"We were very pleased with eMPower's process orientation and the overall quality of its suite of products," said Dr. Andreas Brenke, head of corporate process standards - industrial engineering, Hella KG Hueck & Co. "Since our initial investment in 2001, we have experienced a quality increase in our production planning processes. eMPower's ability to reach beyond process planning and support simulation and optimization of our production processes made this next step an easy one to take."

About Hella KG Hueck & Co

Lighting and electronics for the automotive industry as well as parts supplies to the aftermarket are the core competence areas of the automotive supplier Hella KG Hueck & Co. with its corporate group headquarters in Lippstadt. The turnover of the Hella group is 3 billion Euro. Hella is one of the largest 100 industrial companies in Germany. A total of 22,800 people are employed in 61 manufacturing facilities, production subsidiaries and joint venture companies in 18 different countries. More than 1,800 engineers and technicians work in research and development. Customers include all major vehicle and system manufacturers as well as the automotive parts aftermarket.

About Tecnomatix Technologies Ltd.

Tecnomatix Technologies Ltd. provides the world's leading Manufacturing Process Management (MPM) solutions for the automotive, electronics, aerospace and other manufacturing and processing industries. Tecnomatix eMPower solutions for MPM enable the design, simulation, and execution of production processes, and provide real-time control and visibility throughout shop floor operations. More than 5000 companies worldwide are using eMPower solutions to reduce operating costs, accelerate product introductions, and shorten time-to-volume - while maintaining high levels of product and process quality. With offices in over 20 countries, Tecnomatix supports such global leaders as BMW, Boeing, Comau, Ford, GM, Mazda, Philips, Schneider Electric and Volkswagen. For more information, visit www.tecnomatix.com.

This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the Company's plans, objectives and expected financial and operating results. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, market demand for Tecnomatix products and services, long sales cycles, new product developments, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchange Commission. Tecnomatix undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.