BAE SYSTEMS, Airbus Significantly Increases Investment In Knowledge-Based Technology.

Business/Technology Editors

LEXINGTON, Mass.--(BUSINESS WIRE)--March 8, 2000

Knowledge Technologies International (KTI) and BAE SYSTEMS, Airbus

agree order worth over $7million for software,

maintenance and consulting

With a new contract valued at over $7million, BAE SYSTEMS, Airbus has increased its investment in knowledge-based technology from Knowledge Technologies International (KTI). BAE SYSTEMS recently revealed that, using the software - The KBO Environment(TM) with `ICAD(R) Built In' - in one example two people designed a set of wing ribs in just six weeks, a job which traditionally would have taken twenty people six months. In terms of man-hours and other resources that's an expenditure of around 2.5% of the previous cost or an astonishing saving of 97.5%.

BAE's innovative use of KTI technology has been formally recognized in its design of wings for the new Airbus A340-500/600. BAE engineers recently won the coveted Knowledge-Based Organisation (KBO) Award and the wings were awarded the UK Design Council's "Millennium Product" Status. For this application KTI's knowledge-based software allowed BAE SYSTEMS to capture its knowledge base along with best practice and performance, manufacturing and cost criteria into a virtual model. This has meant engineers can quickly and accurately explore and test multiple `what ifs' against all known constraints.

BAE SYSTEMS' newest investment in KTI technology includes an option to adopt its recently-launched Knowledge-based Process Modeler(TM) (KPM) which now forms part of The KBO Environment(TM). If BAE exercises its option for KPM, it will help it to create its own corporate `central nervous system' - able to `know' what is required where and when, and able to deliver it at the speed of light. KPM can reach out from within an enterprise to initiate and control processes throughout the supply chain. Its capacity to comprehend, initiate, control and monitor dynamic processes, such as a complex design or manufacturing project is technically boundless.

BAE SYSTEMS is already putting its investment in ICAD to work to optimize and accelerate preliminary work on the A3XX high capacity, double-decker passenger aircraft and the new military transport aircraft the A400M. BAE SYSTEMS is also expanding its knowledge-based activities to empower innovation in areas such as composites and manufacturing.

Jeff Jupp, Director Technical at BAE SYSTEMS, Airbus, said: "We are very proud of our advanced use of ICAD, which has already brought us major gains in productivity, optimization and time to complete particular applications. Our significant new investment with KTI was easily justified given the outstanding results already achieved and allows us to achieve wider benefits throughout the design process. BAE SYSTEMS is now at the forefront in its industry for its use of knowledge-based technology."

According to Garreth Evans, CEO, KTI, `This order from BAE SYSTEMS, Airbus is the single largest KTI has received from a European company since our launch a brief eighteen months ago. Understandably, we are thrilled at this ringing endorsement of our strategy, products, services and cost effective solutions.'

About The KBO Environment

KTI's The KBO Environment(TM) with 'ICAD(R) Built In' is the advanced Knowledge-Based Organization (KBO) software tool for the intuitive management of complex processes. It enables a KBO to harness product definitions along with the knowledge base of its experts, product rules, performance data, legislative and safety codes and design best practices. It automates product development from concept to production. KTI's KBO technology has been proven in countless process automation applications for world-leading companies in automotive, aerospace and manufacturing industries providing the most advanced knowledge deployment environment and regularly provides returns on investment of over 100% and productivity gains in excess of 50%. The KBO Environment is a new family of KTI's Knowledge-Based Products comprising several inter-operative elements:

-    Knowledge-based Process Modeler (KPM) - Comprehends, initiates,
     controls and dynamically monitors complex and even fragmented
     enterprise-wide processes

-    Knowledge Server - Easily captures and serves knowledge with
     (`ICAD Built In')

-    Knowledge Portal - Intelligently searches for, delivers and
     archives knowledge

-    Knowledge Browser - An intuitive environment to access and
     integrate your KBO applications

-    Knowledge Backbone - Integrates distributed heterogeneous
     knowledge sources

About KTI

KTI is the technology powerhouse behind the knowledge revolution and the world's most successful provider of software and services empowering the Knowledge-Based Organization (KBO). KTI's technology allows enterprises to capture their Intellectual Capital and deploy it intuitively to control complex processes. The benefits are massively compressed time scales, huge cost savings, enhanced creativity and optimized products, resulting in `audited', documented, repeatable and fully understood processes and best practices. KTI's technology is now considered by many companies to be a vital asset in the drive to constantly improve their offer and keep ahead of the competition. Using KTI's software, global market-leading companies in aerospace, automotive and other manufacturing industries have become pioneers in creating customer-driven products, right first time - every time.

Registered in Luxembourg the company operates from offices across the United States, Europe and Asia. KTI's world-wide client base includes Airbus Industrie, AP Parts, Benetton Formula 1, BAE SYSTEMS, Airbus, Corus, Daelim, Fiat, Ford, GM, IPTN, Jaguar Cars, Lotus Cars, Pratt & Whitney, Ricardo, Rolls-Royce, Sikorsky, Tata, Trico and many others. For more details see: www.KTIworld.com. Note: KTI initiated and is prime sponsor of the KBO conference. Sponsors have included Sun, Hewlett-Packard and Silicon Graphics. For details on the recent European KBO conference in Paris, February 2-3rd 2000 and the next International KBO Conference in Florida 7-9th November, 2000, see: www.KBOworld.com.

About BAE SYSTEMS

BAE SYSTEMS, a full partner within the Airbus Industrie plane-making consortium, is responsible for the design and manufacture of the wings for all Airbus aircraft. The Airbus business of BAE SYSTEMS is also responsible for the overall design and supply of the fuel system and, for almost all types of Airbus, the landing gear.

Airbus Industrie offers a full range of airliners from the 107-seat A319 up to its biggest jetliner yet the A340-600 which will typically carry 380 passengers on routes up to 7500nm and the ultra-long range A340-500, which will be able to fly non-stop further than any other of today's airliners. Firm orders for Airbus airliners from 170 customers around the world stand at well over 3650 aircraft. Of these, 2100 are in service with operators world-wide. In 1999 Airbus Industrie outsold all other airliner producers in the world.

BAE SYSTEMS, Airbus, design and engineering capability is focused on its Filton location near Bristol. Assembly of all wings is undertaken at the company's Broughton factory in North Wales with some major sub assemblies and detail components being manufactured at Broughton.