Gensym and Siemens Sign OEM Agreement.

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 12, 1998--

Gensym's G2 to be the Foundation of Siemens' Intelligent Manufacturing System (IMS)

Gensym Corp. (NASDAQ:GNSM), a leading provider of software and services for intelligent operations management, has signed an OEM agreement with Siemens Information Technology Services for Industrial Plants (Erlangen, Germany). As a result of the second quarter 1998 agreement, Siemens will use Gensym's G2(R) software as the foundation for its Intelligent Manufacturing System (IMS), a high level intelligent information and analysis system designed to optimize the production process and to provide the link between process management and control systems.

"We are very pleased to strengthen our business relationship with a leading global company like Siemens," noted Robert Moore, Gensym President and Director. "As a long-time value added reseller in our Gensym Solution Partner Program, Siemens has offered a variety of G2-based applications for the manufacturing and process industries, and we see this OEM agreement as the start of an even stronger, mutually beneficial partnership," he added.

With IMS, Siemens' customers have the ability to realize high product throughput rate and to optimize process economics by operating within tight product quality limits. The G2-based system supplies intelligent operational information and performs analysis by reducing complexity using situation recognition methods. Employing business models and operational experience and knowledge, IMS filters and analyzes online data and generates operator advice, which enables the production and/or maintenance departments to take preventative actions and optimize the production process. Furthermore, the system automatically learns specific changes in the production process and is able to cope with unanticipated process situations.

"This OEM agreement is a strong indication of our commitment to creating intelligent customer-specific IT solutions," observed Rene Kwol, Siemens' Sales Manager, Intelligent Systems. "IMS is a modular software system that consists of a core system and different application packages for tasks in different areas. It's easy to use with its adaptable user interface and ability to show the information from the operator's point of view. Furthermore, because IMS is open, it provides many standardized interfaces to fieldbus systems, databases, networks and other software applications. We chose G2 because of the strength of its intelligent rule-based technology and powerful graphical object-oriented development environment," he added.

Immediate target markets for the IMS system include automotive, water and wastewater treatment, mining, semiconductor, and electronics.

Siemens AG is one of the world's largest electrical engineering and electronics companies and one of the richest in tradition. During fiscal 1997, which marked Siemens' 150th anniversary, the company had sales of $63.7 billion and a staff of 386,000. Siemens boasts an impressive international presence, focusing on eight core business segments--energy, industry, communications, information, health care, transportation, components, and lighting--which give the company a uniquely wide scope of operations. The "Information Technology Services for Industrial Plants" business unit within the Industrial Projects and Technical Services Group combines classic process and electro-technical solutions with business-related IT applications to form effective complete solutions. Operating worldwide, it provides the competence to realize information-based products, systems and services for industry with the highest possible customer benefits. Its service includes consulting, design, engineering, commissioning and servicing of IT systems utilizing the possibilities of Internet, intranet and network computing. Customers and users profit from the combination of specific data processing competence and technological expertise combined with broad product management experience. For more information, visit the IT Web Site at http://www.atd.siemens.de/it-dl

Founded in 1986, Gensym Corp. is a leading supplier of software and services for intelligent operations management. Common applications include quality management, process optimization, dynamic scheduling, network fault management, energy and environmental management, and abnormal situation management. Gensym has sold more than 10,000 product licenses to organizations in manufacturing, communications, aerospace, transportation, finance, and other industries. Based in Cambridge, Mass., Gensym has offices in North America, Europe, Africa, and Asia/Pacific. Visit Gensym on line at http://www.gensym.com.

This document contains certain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, fluctuations in customer demand, intensity of competition from other solutions vendors, timing and acceptance of new products, and general economic and industry conditions, as well as other risks included on Form 10-Q for the quarter ended March 31, 1998, as filed with the Securities and Exchange Commission and available on the Web at http://www.gensym.com. Gensym Corp. assumes no obligation to update the information contained in this press release.

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