Electronics Manufacturing Service Provider InnerStep Selects eMPower Solutions from Tecnomatix

Company to Implement Manufacturing Process Management System to Drive Process Planning and Execution Improvements

NASHUA, N.H.--(BUSINESS WIRE)--June 18, 2003-- Tecnomatix Technologies Ltd. (NASDAQ: TCNO), the driving force in Manufacturing Process Management (MPM), today announced that electronics manufacturing service (EMS) provider InnerStep selected the company's eMPower(TM) for Electronics solutions to implement a multi-site new product introduction (NPI) initiative aimed at achieving rapid, flexible new product launches and driving Six Sigma quality improvements throughout its operations.

InnerStep purchased licenses for eMPower Execution Systems and eMPower PCB Assembly & Test in March. InnerStep's NPI initiative will use eMPower to help speed product launches and standardize the transfer of processes across its assembly operations, maximizing engineering investment in process design and helping to spread best practices across all of its production facilities. Automated data collection with alerts and remote notification provides InnerStep the ability to be proactive with corrective actions, which supports their Six Sigma initiatives and at the same time allows the company to provide real-time reports internally and to its customers.

"InnerStep's balanced, flexible manufacturing approach requires a strong infrastructure," said Jim Kingman, chief executive officer at InnerStep. "We need to be able to support everything from simple batch manufacturing to aggressive just-in-time programs. As our MPM system of choice, eMPower for Electronics gives us the flexibility we need to satisfy all of our customers. It provides consistent process instruction development and quality tracking across all our plants, while providing online work-in-progress reports and quality tracking for our customers."

"A core element of the performance management trend shaping manufacturing is tying real-time performance data to process planning on an enterprise level, as enabled uniquely by eMPower," said Israel Levy, chief executive officer, Tecnomatix Unicam, a wholly owned subsidiary of Tecnomatix Technologies Ltd. "With a comprehensive set of solutions connecting 'as-planned' to 'as-executed', two major benefits are immediately available: valuable information becomes available to manufacturers which supports their ability to make the critical business decisions that control manufacturing performance today; and manufacturers can more rapidly integrate new sites onto their MPM system in the future."

About Tecnomatix Technologies

Tecnomatix Technologies Ltd. is the driving force in Manufacturing Process Management (MPM). Today's leading global manufacturers are adopting MPM solutions to expand revenue potential and reduce costs by accelerating product introductions, shortening time to volume, and optimizing production execution. eMPower enables our customers to succeed with its collaborative, open platform and applications for defining, simulating, managing, and executing manufacturing processes across the extended enterprise. For more information please 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.

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