EBZ Engineering Chooses Tecnomatix as Primary Supplier of its Manufacturing Process Management Solutions and Services

Tecnomatix Selected over Key Competitors to Outfit Leading German Automotive Engineering Firm with MPM Tools Enterprise Wide

HERZLIA, Israel--(BUSINESS WIRE)--June 25, 2003-- Tecnomatix Technologies Ltd. (NASDAQ: TCNO), the driving force in Manufacturing Process Management (MPM), announced today that Engineering Bausch und Ziege GmbH (EBZ), a leading German automotive engineering firm, has signed a US$500,000 contract with Tecnomatix for use of eMPower(TM) solutions, which will serve as the cornerstone of EBZ's MPM environment.

After careful review of the key suppliers of manufacturing software, EBZ has chosen Tecnomatix as primary supplier of its MPM environment based on its comprehensive suite of automotive solutions. EBZ will roll-out eM-Planner and eM-Workplace for Windows as basic planning tools in the company's Ravensburg headquarters, as well as throughout its offices and subsidiaries in Wolfsburg and Graz, Germany. The new eMPower solutions build upon existing Tecnomatix eMPower CarBody solutions in place at EBZ, enabling the company to improve all of its internal processes and workflows -from planning, construction, robot programming and start-up of production. EBZ Engineering conducts the planning, design and manufacture of lines for a number of automotive OEMs, such as Volkswagen, Audi, and DaimlerChrysler as well as their partners in Body-in-White.

"Based on our experience using Tecnomatix MPM solutions in the past, we are confident that we have made the right choice selecting eM-Planner and eM-Workplace as the standard throughout our organization," said Thomas Bausch, one of the CEOs at EBZ Engineering GmbH. "eMPower plays a critical role in the evolution of our digital factories, letting us improve the quality of our overall planning and processes and to respond more quickly to changing automotive customer needs."

"As a customer of Tecnomatix for more than eight years, EBZ Engineering's long-standing commitment to Tecnomatix eMPower solutions and the company's pledge to foster a full MPM environment based on Tecnomatix solutions demonstrates the role of EBZ as a driving force in the automation of the manufacturing process in Germany's automotive industry," said Harel Beit-On, chairman and CEO of Tecnomatix Technologies Ltd. "The agreement demonstrates the unrivaled ability of our eMPower solutions to help manufacturers stay ahead of the curve."

About Tecnomatix Technologies

Tecnomatix Technologies Ltd. is the driving force in Manufacturing Process Management (MPM). Today's leading global manufacturers are adopting eMPower solutions for MPM 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.

About EBZ

EBZ Engineering Bausch & Ziege GmbH has its headquarter in Ravensburg. EBZ offers the complete engineering process chain for body-in-white - from concept planning over simulation to detailed planning, construction, control technique and robot programming. Locations in Stuttgart, Wolfsburg, Sao Paulo, Graz, Russia and Hungary ensure proximity to customers.

For more information please visit www.ebz-gmbh.de

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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