Covansys Solution Enables Compliance with New Homeland Security Measures.

Business Editors/High-Tech Writers

FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--Jan. 6, 2003

Covansys Secure Supply Chain Solution Helps Companies Comply With

The Container Security Initiative and The Sunrise Date

Covansys Corporation (Nasdaq: CVNS), a global consulting and technology services company, today announced the availability of the Covansys Secure Supply Chain Solution that enables international companies to meet new business challenges and opportunities posed by two converging events in supply chain management: The Container Security Initiative (CSI) and The Sunrise Date.

In the post-CSI/Sunrise environment, supply chain planning will demand a broad knowledge of government security regulations, overseas procurement, flexible cargo routing, and effective integration of systems reporting product status at every management level. Covansys' Secure Supply Chain Solution helps clients develop customized solutions to address the sweeping changes currently facing the retail, distribution and manufacturing industries. Companies implementing the new UPC standards can achieve significant cost-efficiencies by leveraging Covansys' offsite or offshore facilities.

This solution is part of the company's application, maintenance and development outsourcing (AMD/O) service offering. Covansys has been executing similar conversion projects for the past 18 years for leading retailers such as Lands' End and The Kroger Company.

"The largest importers and barcode users view compliance with CSI and Sunrise standards as an important supply chain element in improving freight rates, creating favorable transportation logistics, attaining faster time-to market, and ensuring more efficient inventory and audit capabilities," said Andrew White, research analyst, Gartner, Inc. "Companies who choose not to convert could face incremental costs in their supply chain by not complying."

The United States Customs Service was ordered to implement the CSI to respond to terrorist threats against goods imported into the United States. Under the CSI regulations, as of December 2002 all container manifests for cargo at foreign ports bound for U.S. locations must be electronically transmitted to the U.S. Customs Service at least 24 hours before vessel departure.

Current CSI regulations are intended to improve U.S. security by tightening and expanding cargo-reporting requirements. Later stages of the CSI will establish standards for the security and integrity of containers and cargo throughout the transportation supply chain. Companies must prepare now for fundamental changes in both immediate and long-term supply chain practices.

A secure and effective supply chain relies on Global Trade Item Numbers (GTINs), such as barcodes, as critical tracking and audit tools. However, on January 1, 2005 (also called the Sunrise Date), the standard, North American 12-digit UPC barcode will no longer be supported by the Uniform Code Council (UCC), the governing body that issues barcodes. Databases and processes that rely on the 12-digit standard will also need to be altered to manage the new standards. Companies unable to meet the new standards will face likely costs in relabeling goods, finding new suppliers, or being shut out of markets. This change, in conjunction with the ongoing CSI efforts, will have far-reaching effects on supply chain practices.

"The CSI and the Sunrise Date have the potential to force end-to-end supply chain reengineering for those companies not adequately prepared for the long-term effects of these regulations. International companies need to address their short-term needs first to ensure that cargo keeps moving in the new CSI regulatory environment. However, they must also be aware of the Sunrise issues and the long-term CSI objectives to ensure that their solution is effective past January 1, 2005." said Martin C. Clague, president and CEO, Covansys.

"Forward-looking companies that begin planning now for improved data management and security requirements will be better positioned for long-term profitability. Covansys is pleased to be able to help these companies with our new Secure Supply Chain Solution."

Covansys possesses a decade-long track record of success in managing outsourcing for more than four-dozen top companies, including SIRVA, Guardian Insurance, Henry Ford Health Systems, and UNUMProvident Corporation. Covansys currently has three offshore development centers in India.

About Covansys Corporation

Headquartered in Michigan, Covansys Corporation (Nasdaq: CVNS) is a global consulting and technology services company specializing in industry-specific solutions, strategic outsourcing and integration services. Our clients gain competitive advantage by leveraging our unique on-site, offsite, offshore delivery capability to achieve rapid deployment, world-class quality and reduced costs. Since its founding in1985, Covansys has successfully delivered an array of innovative and cost-effective business and technical solutions to leaders in the private and public sector. Our 4,800 employees offer a professional heritage spanning Old World legacy systems and the New Economy's leading-edge technologies. Covansys has 30 locations worldwide, including six development centers. Covansys offers one of the largest offshore capabilities among U.S.-based technology services providers, and two of the company's three wholly owned development centers in India are SEI CMM(R) and PCMM(R) Level 5 certified. Covansys was named one of the top 500 solution providers in North America in 2002 by VARBusiness magazine. Visit our web site: www.covansys.com.