Avanade Acquires en'tegrate; Combination of Global Microsoft Expertise and Microsoft Business Solutions-Axapta Capabilities is Unparalleled in IT Services Industry.

SEATTLE -- Avanade(R) Inc., a leading global technology integrator for Microsoft solutions, has acquired en'tegrate, a Chicago-based services firm that is a U.S. leader in design and deployment of Microsoft(R) Business Solutions-Axapta. Founded in 1997, en'tegrate has completed two of the largest U.S. installations of Microsoft Axapta to date.

Avanade and en'tegrate are both privately held. Financial terms of the transaction were not disclosed.

The union brings together Avanade's deep expertise in Microsoft technology with enterprise customers, and en'tegrate's proven insight and skill in Microsoft Axapta systems. The acquisition bolsters Avanade's successful Microsoft Business Solutions practice with even greater ability to meet customers' needs now and in the future. According to IDC Research, the ERP applications market is expected to grow to $36 billion by the end of 2008 ("Worldwide ERP Application Market 2004-2008 Forecast: First Look at Top 10 Vendors," May 2004).

Like Avanade, en'tegrate aggregates best practices and proven design, configuration, and reusable software components for fast, consistent system delivery. Now, Avanade customers will have access to ERP assets that enhance Microsoft Axapta implementation, in addition to Avanade's proven tools that have helped thousands of customers worldwide accelerate service and application deployment.

"Growing customer demand and ERP industry consolidation create an opportunity for Avanade to help companies that are seeking an alternative to large-scale ERP systems," said Mitch Hill, CEO, Avanade. "With en'tegrate on board, we can extend our Microsoft Business Solutions practice and offer even more value to our customers."

"By joining Avanade, we're bringing customers an expanded set of capabilities and a global presence," said Kim Gable, managing partner, en'tegrate. "With Avanade's experience architecting enterprise infrastructure and deploying world-class applications, we optimize underlying Microsoft systems and technology for the customer's Microsoft Axapta implementation."

"Avanade's rapid growth in Microsoft Business Solutions underscores the value they bring in helping global organizations maximize their Microsoft investments," said Mark Jensen, General Manager-Axapta, Microsoft. "Microsoft Axapta is an easily customizable and highly scalable solution that supports growing businesses. Together, Avanade and en'tegrate will assist customers and prospects in understanding how Microsoft Axapta can benefit their business' bottom line."

One such customer is Oldcastle Architectural, Inc., the leading North American producer of concrete masonry products. After an extensive search process, Oldcastle APG chose Microsoft Axapta and en'tegrate in what became one of the largest Microsoft Axapta implementation in the U.S.

"We looked at several leading ERP vendors, and it became clear to us that Microsoft Axapta was the winner for many reasons -- ease of use, cost advantages and for giving us the scalability we need to meet our growth plans," said Jerry Kottelenberg, CIO, Oldcastle APG. "We view Microsoft Axapta as the tool, and en'tegrate became the strategic partner of choice to assist our own talented staff to deploy the system on time and on budget. With Avanade acquiring en'tegrate, we can now tap a broad range of Microsoft platform services and skills."

About Avanade

Avanade is the leading technology integrator specializing in the Microsoft enterprise platform. Our people help customers around the world maximize their IT investment and create comprehensive solutions that drive business results. Additional information can be found at www.avanade.com.

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