Client Success, Technology Advancements and Business Growth Define 2004 for ToolsGroup.

ORLANDO, Fla. and BOSTON -- SAP Logistics and Supply Chain Management 2005 Conference Marks ToolsGroup's Successful First Anniversary in U.S. Market

ToolsGroup, the global leader of inventory optimization software solutions for distribution-intensive businesses, marked its one year anniversary in the U.S. market at the SAP Logistics and Supply Chain Management 2005 conference today.

"In 2004, we built a strong foundation in the North American market by introducing new products, building our sales and marketing teams, and providing measurable benefits for industry leading companies," said ToolsGroup CEO Joseph Shamir. "We believe that ToolsGroup is poised for an excellent 2005."

Globally, ToolsGroup increased sales $ revenues by 25 percent. The company also prepared for growth by hiring two new sales executives: Eric Treworgy, Vice President of Sales for North America, and Alain Brockmann, Executive Director of Sales in Europe.

During the year, ToolsGroup saw continued client success, product and technology advancements, and growing analyst acknowledgment.

--Client Success with ToolsGroup's software

Successful implementations at Colgate-Palmolive, Castrol, retailer PC City, fashion leaders Luxottica and Pompea, and four European food companies were all featured during the year. Common themes were improved customer service levels and reduced inventories.

For example, Alejandro Exposito, Systems Manager, PC City, Dixons Group said: "Within weeks stock-outs in our central warehouse were down 35 percent and stock-outs at our stores were down an amazing 50 percent, all with less inventory."

--Product/Technology Advancements and Praise

ToolsGroup introduced DPM 5.0 with functions designed specifically for consumer goods manufacturers and retailers. The company also reinforced its status as the technology leader by introducing the Parallel Simulator for benchmarking, monitoring and controlling the inventory optimization process.

ToolsGroup's solution was recognized with several industry awards including: Supply & Demand Chain Executive 100, Consumer Goods Technology Power User Outstanding Achievement, and Food Logistics Top 100 Technology Solution Providers.

--Analysts Feature ToolsGroup and Inventory Optimization

AMR Research regularly featured inventory optimization and ToolsGroup. For example, Bill Swanton's May 18 AMR Research Alert, "Improved Inventory Positioning: A Case Study in ERP Accessories" stated: "One consumer products company we spoke to paid for the system in four months by improving its service level to major retail customers to more than 99 percent from 97 percent while cutting inventory 20 percent."

Aberdeen Group completed the "Supply Chain Inventory Strategies Benchmark Report" study of 178 enterprises in December 2004. Beth Enslow, vice president of enterprise research, wrote: "Inventory is one of the most valuable assets a company has, yet benchmark results show that most companies fail to manage it effectively."

About ToolsGroup

ToolsGroup provides inventory optimization software solutions for distribution-intensive businesses. Its powerful stochastic solution optimizes distribution chain inventory, from finished goods assembly to the end consumer, and from strategic network design to daily operations. It allows supply chain managers to meet demanding service levels, while reducing inventory and operating costs. With more than 80 customers in 28 countries, it is the most experienced inventory optimization software provider worldwide. For more information on ToolsGroup and its solutions, please visit www.ToolsGroup.com.