Jones Business Systems Inc. Acquires Challenger Information Systems; Computer Distributor Purchases Leading Equipment Dealership VAR.

ST. LOUIS--(BUSINESS WIRE)--March 6, 1997--Challenger Information Systems (Challenger), a leading supplier of computer software and systems for equipment dealerships, announced today that it has been acquired by Jones Business Systems Inc. (JBS), a Houston-based high-technology company and national distributor of UNIX and Windows NT-based hardware and software products.

Challenger Information Systems was formerly the dealer- automation division of the North American Equipment Dealers Association (NAEDA). Challenger provides computer equipment and software to more than 1,000 equipment dealership locations throughout the United States and Canada. Terms of the purchase were not disclosed.

"The national association is very pleased with the strategic partnership created by this transaction," said David G. Ottaway CAE, CEO and executive vice president of NAEDA. "The complementary resources of Challenger and JBS will assure our dealer members of superior service and technology well into the future."

Challenger will operate as a wholly owned subsidiary of JBS. Former Challenger board members will remain as an advisory board, providing continuity in dealer and dealer manufacturer relationships. The company's immediate focus will be directed toward maintaining and improving technical services provided to Challenger's dealership network and dealer/manufacturers, including AGCO, Case, John Deere, Kubota and New Holland.

"I'm very excited about the opportunities that Challenger users will have with this acquisition," said Jeff Flora, CEO of NAEDA's Western Association. "JBS's management and its commitment to the equipment industry and dealers are rock solid. I'm convinced that no other entity offering computer systems, training and technology to the equipment industry will be able to match the JBS/Challenger team."

"A key consideration in this acquisition was bringing in an organization with the size, strength and capital of Jones Business Systems to further enhance our vendor relationships and deliver tomorrow's technology to the agricultural dealership market," said Challenger's former president, John Hiebert.

Bruce A. Parsons, who had been executive vice president of JBS, has been named as the new president of Challenger. Former president John Hiebert will continue as an advisory board member. Robert Johnson, Challenger's current director of sales, will continue with the company in an expanded role as vice president of sales and marketing.

JBS management, sales and technical personnel have been involved in the minicomputer market since the mid-1980s. "JBS's considerable experience and demonstrated track record in providing leading-edge technology and superior support services to its existing national customer base will help Challenger and its dealers be more competitive in a tough industry," said Parsons. "As early adopters of new technology, such as UNIX for mid-range computing solutions, relational database products, NT/CITRIX, Internet computing and thin client solutions, JBS has long been a leader in advanced computer technology."

"We feel confident that JBS's attention to quality, new software and a constant evaluation of product will allow Challenger users to operate their equipment dealerships in the most efficient and cost-effective manner possible," said Flora.

"JBS brings new vision and knowledge to the Challenger program's ability to provide users the best in products and support going into the 2000 years," said Gary Manke, executive vice president of the Midwest Equipment Dealers Association. "JBS has proven over the last several years to be a financially sound, fast-growing, reputable and user- responsive company. JBS brings to our dealer-base members not only a solid organization, but insight into what computer and software technology are needed for market leadership in the coming years."

"JBS will make a significant investment of capital and technology into Challenger technical support, application-program development and dealership education," said Parsons. "For example, a new fully-integrated telephone system, an enhanced computer network and a new automated support-dispatch tracking system will be installed at Challenger locations, enabling us to upgrade services and support response time," he added.

For JBS, the acquisition is the first of many it will consider and pursue in this business sector. "Challenger represents a significant move in Jones Business Systems' strategy to become a leading provider of technology-based products and services," said Steve Shadle, JBS chairman and co-founder. "With this purchase, Jones becomes a technology company with more than 1,000 installations, proprietary vertical-application software and a significant market opportunity."

A focus on the agricultural market is a natural for JBS. Iowa-born and raised and a University of Iowa graduate, Shadle was past president of the National Council of Agricultural Employers and still owns a farm in Iowa's heartland, as well as citrus and date farms near his present home in Yuma, Arizona.

"JBS is well capitalized, with a history of 16 consecutive quarters of sales growth and profit," said Scott Shadle, JBS president. "We believe that JBS can bring the same level of success to Challenger, expanding its already strong product offering and user base into a major value-added reseller division within the next few years."

Jones Business Systems is a high-technology company with headquarters in Houston, Texas. For the past three years, JBS has been recognized as one of Houston's 100 fastest-growing privately held companies. In addition to Challenger Information Systems, JBS operates JBS Open Systems Distribution, a national value-added distributor of UNIX and open systems solutions. JBS Open Systems Distribution projects sales exceeding $50 million during 1997.

Background

Challenger Information Systems is a leading supplier of computer software and systems to equipment dealerships throughout the United States and Canada. Challenger has offices in St Louis, Missouri; Kansas City, Missouri; Des Moines, Iowa; and Stratford, Ontario (Canada). Challenger is a wholly owned subsidiary of Jones Business Systems, a Houston, Texas based high-technology company.

CONTACT: Challenger Information Systems

John Martin, 713/690-2653

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