Mitsubishi Heavy Industries to Implement Tecnomatix eMPower Solutions in Japan.

HERZLIA, Israel -- Line Balancing and Discrete Event Simulation Tools will Reduce Production Preparation Time and Production Costs, and Accelerate Time to Market

Tecnomatix Technologies Ltd. (NASDAQ:TCNO), the driving force in manufacturing process management (MPM), today announced that the General Machinery & Special Vehicle Headquarters (GMSV HQ) of Mitsubishi Heavy Industries, Ltd., one of the world's leading heavy machinery manufacturers, will deploy eMPower(TM) solutions from Tecnomatix in Japan. MHI's GMSV HQ group manufactures and sells large- and middle-sized diesel engines, electrical power generators and engines for sea vessels.

The contract, valued at approximately $400,000, includes licenses for and support of the Tecnomatix eM-Machining and eM-RealNC products. eM-Machining will help MHI design such processes as operation and tool selection, allocation and line balancing - based on skilled engineers' know-how. eM-RealNC will simulate complete workspaces, including machine tools, workpieces and fixtures. The combination of eM-Machining and eM-RealNC will enable MHI to improve the efficiency of its process preparation, accelerate ramp-up times and decrease problems through the generation of Numeric Control (NC) tool paths and verification of interference and cycle times.

MHI's GMSV HQ group will use eM-Machining and eM-RealNC from Tecnomatix to complement its engineers' skills with advanced technology for the most efficient manufacturing processes. It aims to reduce production preparation time and decrease back-end process problems, production costs and capital investment-while shortening time-to market.

"We have been aspiring to fully optimize our production planning processes, with the ultimate goal of streamlining production operations overall and providing our customers with the best products available," said Tokushi Koumaru, production engineering manager of MHI's GMSV HQ group. "In order to achieve that goal, we are in the process of establishing a '3D CAD Manufacturing Consistency Support System.' We feel confident that we will realize a real collaborative production environment by integrating eM-Machining and eM-RealNC into that new system."

"Today's customer-driven business environment demands that companies like MHI perform at new levels of speed, customization and collaboration," said Jaron Lotan, president and chief executive officer of Tecnomatix Technologies. "Flexibility is a critical component in these companies' strategies to accommodate increasing numbers of product variants and fluctuating demand, and eMPower is providing manufacturers the necessary tools to remain competitive in this evolving business landscape."

About Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading global heavy machinery manufacturers, with consolidated sales of $21.3 billion in fiscal 2003 (year ended March 31, 2004). MHI's diverse lineup of products and services encompasses shipbuilding, steel structures, power plants, chemical plants, steel plants, environmental equipment, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website (http://www.mhi.co.jp).

About Tecnomatix Technologies Ltd.

Tecnomatix Technologies Ltd. provides the world's leading Manufacturing Process Management (MPM) solutions for the automotive, electronics, aerospace and other manufacturing and processing industries. Tecnomatix eMPower solutions for MPM enable the design, simulation, and execution of production processes, and provide real-time control and visibility throughout shop floor operations. More than 5000 companies worldwide are using eMPower solutions to reduce operating costs, accelerate product introductions, and shorten time-to-volume - while maintaining high levels of product and process quality. With offices in over 20 countries, Tecnomatix supports such global leaders as BMW, Boeing, Comau, Ford, GM, Mazda, Philips, Schneider Electric and Volkswagen. For more information, visit www.tecnomatix.com.

This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the Company's plans, objectives and expected financial and operating results. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, market demand for Tecnomatix products and services, long sales cycles, new product developments, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchange Commission. Tecnomatix undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.