Korea Aerospace Industries Employs Tecnomatix eMPower Solutions to Complete Company-Wide Integration Project

Leading Korean Manufacturer Builds Powerful, Integrated Manufacturing Process Management System with eMPower at its Core

NASHUA, N.H.--(BUSINESS WIRE)--Jan. 30, 2002-- Tecnomatix Technologies, Ltd. (NASDAQ: TCNO - news), the leading provider of Manufacturing Process Management (MPM) software solutions, announced today that Korea Aerospace Industries (KAI) has completed its Computer-Aided Planning Project (CAPP), designed to integrate its Enterprise Resource Planning (ERP), Product Data Management (PDM) and CAD/CAM systems, using Tecnomatix eMPower(TM) solutions.

Source: Tecnomatix Technologies, Ltd.

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KAI, formed through the consolidation of Korea's three major aerospace manufacturers (Samsung, Hyundai and Daewoo), underwent the integration project to improve efficiencies, reduce costs and accelerate time-to-market of its aircraft production processes. Tecnomatix eMPower solutions, including eM-Assembler and eM-Planner, serve as the integration platform of the new system, which includes Metaphase PDM software, SAP R/3 for ERP, and its own in-house modeling system.

"The aims of CAPP are to integrate our engineering and production systems and to simulate not only the product to be developed, but also the processes involved in manufacturing it," said Mr. Kim Jung-Jin, manager of the CAPP integration. "The new CAPP infrastructure is already in use, and plans are in place to expand our use of Tecnomatix MPM solutions to our new helicopter project. The next phase of CAPP is to extend the existing level of integration to our entire IT infrastructure to allow concurrent engineering and to support the complete product life cycle."

According to Michael Burkett, analyst for AMR Research, Inc., aerospace manufacturers are using "Tecnomatix Technologies' eMPower application to speed the planning and development of the manufacturing process." Additionally, Burkett commented: "In today's environment, where time-to-market and a lean manufacturing process are a competitive advantage, Tecnomatix provides the technology to give manufacturers of complex products the edge they need."

"Thanks to the eMPower solution and the work of the Tecnomatix Global Professional Services (GPS) team, KAI's engineering and production systems are fully integrated for the first time," said Harel Beit-On, chairman and chief executive officer of Tecnomatix Technologies, Ltd. "In a very short time, Tecnomatix GPS assembled and integrated a very complex set of systems and solutions for KAI. This comprehensive MPM implementation will lead to immediate benefits for KAI as unnecessary process duplication is eliminated and data accuracy is increased. It will also bring long-term benefits as product planning time is significantly reduced and more potential problems are identified before a product reaches the assembly lines. KAI has built a powerful, integrated system using Tecnomatix MPM solutions at its core."

About Tecnomatix Technologies, Ltd.

Tecnomatix Technologies, Ltd. (NASDAQ: TCNO - news) is the world's leading provider of Manufacturing Process Management software for the electronics, automotive, aerospace and heavy equipment industries. The company's eMPower(TM) software enables global manufacturing customers to build the best production strategies to succeed in their increasingly complex environments. Tecnomatix applications run on an open platform providing a collaborative environment for authoring, simulating and managing manufacturing processes across the extended enterprise and its suppliers. The company, founded in 1983, has offices and distributors in North America, Europe, the Pacific Rim and Latin America. Additional information about the company can be found at www.tecnomatix.com.

About KAI

Korea Aerospace Industries, Ltd.(KAI) is Korea's premier aerospace company, formed through the consolidation of the aerospace business of Daewoo Heavy Industries (DHI), Hyundai Space & Aircraft (HYSA) and Samsung Aerospace (SSA). KAI is the designated Prime Contractor and System Integrator for all aircrafts and satellites required by the Korean government. KAI also enjoys a strong reputation in civil aerospace programs overseas and plans to expand its international cooperation with leading aerospace companies in the world.

Certain statements made herein that use the words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company to be materially different from those which may be expressed or implied by such statements, including, among others, changes in general economic, political and business conditions and specifically, changes in the level of activity in the manufacturing industry, decline in demand to the Company's products, inability to timely develop and introduce new technologies, products and applications and loss of market share and pressure on prices resulting from competition. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission. Note: All brand, product and company names are trademarks of their respective owners.

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