Lilly Software and Tompkins Associates Announce Strategic Alliance to Deliver Solutions to 3PL Providers

Hampton, NH and Raleigh, NC (USA), June 28, 2001—Lilly Software Associates and Tompkins Associates announced today that they will focus their strategic alliance on delivering solutions to third-party logistics (3PL) providers.

Tompkins Associates will help market and implement Lilly Software's unique Rate Maintenance and Billing (RMB) functionality, which is designed to manage multi-vendor inventories and warehouse activity-based billing by customer. The agreement strengthens the existing partnership between Lilly Software, a leading provider of enterprise and supply chain solutions, and Tompkins, the leader in Total Operations consulting, integration, and implementation. "With this new alliance direction, purchasers will enjoy the support of two companies who share a commitment to Supply Chain Planning and Execution," said John Spain, Senior Partner, Tompkins Associates. "Both Lilly Software and Tompkins bring strong expertise to this landscape."

Tompkins Associates offers over 30 years of experience to the 3PL marketplace, with best practices focusing on operational benchmark and assessment, network analysis and planning, and best of breed technology evaluation.

"Given the increasing global demand for accurate and timely fulfillment, well-managed inventories, and value-added services capabilities within the warehouse, this is a perfect time for Lilly and Tompkins to focus their combined domain expertise in support of the burgeoning 3PL industry," said Hermine Delany, Lilly Software's Vice President, Strategic Alliances.

Lilly's RMB capabilities eliminate the billing difficulties experienced by 3PL providers. According to Stanley Chew, Lilly Software's Vice President, Distribution Solutions: "3PLs consistently tell us that they leave thousands of dollars on the table a week because of inaccurate activity tracking." He added that Lilly Software was first-to-market with an RMB solution, and at present, a third of its VISUAL Distribution® installations are for outsourced logistics providers.

With Lilly Software's RMB module, 3PL companies can expect enhanced operational control, greater efficiencies, and high levels of customer satisfaction. "The more value-add services a 3PL provides, and the more they are able to customize their contracts for services with different customers, the more likely they are to maximize billing-and therefore revenue-opportunities," said Chew. AMR Research recently recognized the strength of Lilly Software's new billing module and other distribution enhancements in its Supply Chain Alert for May 14, 2001, saying: "These enhancements reinforce Lilly's ability to compete head-to-head with and win against the best-of-breed WMS vendors in the market today."

Lilly Software's RMB features include:

• Communication of information from multiple warehouses to full financial applications
• Activity definition, supported by rules-based formulas, enabling infinite service and billing options
• Automated generation of invoices by owner
• Summary to detailed "transaction level" invoice formats
• Microsoft® COM/DCOM architecture

The partnership will complement and extend Lilly Software's current support services to encompass wholesale distribution consulting and implementation services, as well as Business Process and Operation consulting for mid-sized manufacturers and distributors.

About Lilly Software Associates
Lilly Software Associates, Inc. (LSA) provides a complete line of enterprise and supply chain management solutions for manufacturers and distributors. With its easy-to-use graphical nature, the VISUAL suite of products helps companies capture accurate, real-time data about their business processes using ERP, APS, MES, Quality Management, Customer Relationship Management (CRM), E-Business Relationship Management (ERM), Warehouse Management System (WMS), and Transportation Management System (TMS) capabilities. Most VISUAL applications run on Windows NT®, UNIX®, LINUX, VMS, Novell® or OS400 using SQLBase®, Microsoft SQLServer®, ORACLE® or DB2®/400 relational databases, and are certified for both iSeries and Netfinity servers.

In 1998 and 1999, Inc. Magazine ranked LSA as one of the 500 fastest-growing companies in the US. In 2000, Lilly Software was recognized by start magazine as one of the Hottest Companies for its third consecutive year, and made the lists for both Software Magazine's Top 500 and Manufacturing Systems' Top 100 Software Companies. Lilly Software is currently listed in Managing Automation magazine as a 2001 Software Leader.

More information about Lilly Software and its products is available on the Web at www.lillysoftware.com.

Media Contact:
E-mail Myra Schwartz or call 919-876-3667.

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