British Steel Automotive Adds Computer-Based Knowledge To Steel Technology.

BURLINGTON, Mass.--(BUSINESS WIRE)--Sept. 16, 1998-- Knowledge Technologies International (KTI) Announces Consultancy Sale

To British Steel Automotive Engineering Group

Knowledge Technologies International (KTI) today announced that its software, the ICAD(R) System (ICAD), is being used by British Steel Automotive Engineering Group (BS AEG) to give added value to potential automotive customers. The AEG was formed to expand British Steel's involvement with vehicle manufacturers early in the design-development phase, helping them to use steel in the most cost- and mass-efficient ways. AEG's service is part of an overall technology package that is provided to customers of British Steel.

BS AEG is able to offer this service only by using the latest Knowledge-Based Organization (KBO) technology. KTI's ICAD is the leading technology in this field, allowing companies to consistently bring their `best-ever' team of experts to every design. KTI's agreement with BS AEG is the first deal to be concluded under the new consultancy business model recently launched by KTI, and consists of ICAD software and maintenance, together with knowledge consultancy.

The project is directed by Richard Jones, head of product development for BS AEG. With ICAD as the enabler, Jones has married his team's expertise in automotive engineering with British Steel's expertise in specialist steels. Its customers' manufacturing rules are then added to complete the equation. In use, ICAD alerts engineers to the mechanical, manufacturing, spatial, mass, performance or legislative implications of any design change, freeing them from repetitive or tedious tasks and helping to unleash their creativity. The objectives and results are genuinely optimized designs, using the most appropriate steels and manufacturing methods.

BS AEG has targeted manufacturing feasibility assessment of two key automotive technologies for their initial ICAD application development: tailor welded blanks (TWB) and hydroforming. Tailor welded blanks achieve mass reduction and parts consolidation by laser- welding together different thicknesses and grades of steel sheet, prior to pressing them into body panels. This eliminates the need for supplementary reinforcements. Hydroforming is a manufacturing process whereby a steel tube is expanded inside a die using fluid pressure to achieve a final geometry - again with the objective of achieving mass reduction and parts consolidation.

The ICAD TWB and hydroform applications will consider all aspects of manufacturing feasibility in order to deliver an optimized design and a process optimized for materials, tooling and capital costs. The applications will then deliver, in the form of output, validated component design geometry, process plans, estimated costs (materials, tools, manufacturing and capital) and concept tool designs.

According to Professor Jon King, research director at BS AEG, "We are expecting large increases in productivity arising from our use of ICAD. The KTI consultancy services purchased with the software have been hugely beneficial. They have enabled us to hit the ground running with our ICAD application development."

Richard Jones added: "British Steel has a vast product range which we wish to exploit using ICAD, to provide our customers with real cost savings. Starting with our customers' product designs and their functional requirements, we believe that by using ICAD we will be able to take account of the constraints imposed by manufacturing and select an optimum material grade and manufacturing process to deliver those functional requirements at the lowest cost. We see ICAD as a key technology to enable British Steel to provide a value-added service for its automotive customers."

Garreth Evans, CEO of KTI, commented: "This consultancy-led purchase of ICAD by a new customer, British Steel, is a welcome endorsement of our new way of doing business. Richard Jones has worked with us before and quickly decided to invest in our world-beating KBO technology. I look forward to the benefits to be enjoyed by British Steel and to helping them become even more competitive on their world stage." About The ICAD(R) System

KTI's ICAD is an advanced KBO software tool that enables an organization to harness geometric definitions along with the knowledge base of its experts; product rules; performance data; legislative and safety codes; and design and manufacturing best-practices. It automates product development from concept to production. ICAD's KBO technology has been proven in countless design-automation applications for world-leading companies in automotive, aerospace and manufacturing industries. It fills the unautomated void of concept design and regularly provides productivity gains in excess of 50% and returns on investment of over 100%. About KTI

KTI is by far the leading provider of engineering software solutions empowering the Knowledge-Based Organization (KBO). Using KTI's software, market-leading companies in aerospace, automotive and manufacturing industries are creating customer-driven product designs the right way first time, every time. Registered in Luxembourg, the company operates from offices across the United States, Europe and Asia. KTI's worldwide client base includes Airbus Industrie, AP Parts, Benetton Formula 1, Boeing, British Aerospace, Daelim, Delphi, Fiat, Ford, GM, IPTN, Jaguar Cars, Lotus Cars, Pratt & Whitney, Ricardo, Shorts, Sikorsky, Tata, Trico and many others. For more details see: www.KTIworld.com. About British Steel

British Steel is acknowledged to be one of the world's most efficient and competitive steel makers. With annual sales of (pound)7 billion ($11.5 billion) and a liquid steel output of around 17 million tonnes per year, it is one of Britain's top 10 manufacturing exporters. Overseas sales account for half of British Steel's business, and it has sales outlets in most countries. The company makes a vast range of steels to exacting specifications. About British Steel Automotive Engineering Group

British Steel AEG was formed to support the company's strategy of increasing customer focus. The company recognized the importance of the automotive sector and wished to expand its involvement with vehicle manufacturers early in the design-development phase, helping them to use steel in the most cost- and mass-efficient ways. Shortly to be housed in a new building in Coventry, the heart of Britain's car manufacturing industry, the AEG is a center of excellence with an important role in carrying out automotive projects both inside and outside the company.