IBM Signs Major Contract With Avalon Software 

Client/Server Application Software Chosen for Two World-Class Plants

TUCSON, AZ, February 23,1993 -- Two IBM manufacturing facilities in Austin,
Texas, have jointly signed a major licensing agreement with Avalon
Software, Inc., for the implementation of its CIIM client/server
manufacturing software. The two IBM business units are the Advanced
Workstation Systems (AWS) plant, which build the RISC System/6000 product
line, and the Electronic Card Assembly and Test plant (ECAT), which
supplies cards to the RISC System/6000 as well as to the IBM personal
Computer products assembled in Raleigh, North Carolina.

Under the terms of the contract, the AWS and ECAT business units have
purchased a suite of CIIM, Avalon's fully integrated family of
manufacturing, distribution, and financial software applications. This
agreement reflects a significant step towards the overall Austin goal of
becoming the IBM model of client/server, distributed computing, and will
enable the plants to showcase the products designed and/or built on the
Austin site.

Both plants will run the Avalon CIIM product in an open systems environment
utilizing the Sybase relational database (RDBMS) in an OS/2 and AIX
client/server architecture. The hardware configuration will include RISC
System/6000-980 PowerServers and PS/2 application servers. End user
clients will consist of a mixture of RISC System/6000 workstations, PS/2s,
and X-stations.

"IBM's competitive strategy involves an ever quicker response to our
customer," remarked Bill Amelio, ECAT plant manager for IBM in Austin.
"After a thorough study of open systems products on the market, we
selected Avalon for two main reasons. The first was their process-oriented
approach to software development. The second was the rich functionality of
their manufacturing applications which will enable us to aggressively
expand our OEM service offerings."

According to Gary Gibson, Avalon's president and chief executive officer,
"We are delighted to have IBM, a company recognized world-wide for its
excellence in manufacturing, as a customer. IBM will give Avalon valuable
input into developing additional world-class functionality that will
benefit all our open systems customers." 

ABOUT CIIM AND IBM MANUFACTURING

ECAT and AWS will work jointly on separate installations of Avalon's
manufacturing software. ECAT will use CIIM first to create a stand-alone
environment to support its fast-growing OEM business. ECAT is building
electronic cards for other non-IBM manufacturing customers, as well as
providing an assemble-to-order process for personal computers designed
outside of IBM. Both ECAT and AWS plan to have CIIM supporting full
production by first quarter 1994. CIIM will drive a re-engineering of many
processes, including order entry, configuration, repetitive logistics,
build-to-order, distribution, procurement, and inventory management.

The ECAT and AWS plants are looking to the Southeast Region of the IBM
Information and Telecommunications Systems Services business (I&TSS) to
provide the system management and network management services for the
distributed computing environment in which the CIIM product will operate.
Included in these services will be LAN support, TCP/IP support,
bridges/routers support, backup, performance, fault isolation, security,
help desk, and application development/ maintenance.

About IBM Austin

The IBM Austin site is an integral member of the IBM Personal Systems Line
of Business. The AIX and OS/2 development labs are on site. The Advanced
Workstation Systems line of business has its hardware lab and
manufacturing plant on site. The Technology Products Printed Wire Board
plant is on site. The IBM PC Company has its ECAT plant on site, which
makes the PS/2 motherboards for its sister plant in Raleigh, NC. 

About Avalon Software and CIIM

Avalon Software's CIIM is the only advanced manufacturing solution to
support multiple SQL-based RDBMSs -- including SYBASE and ORACLE -- a
client server architecture, CASE, and a wide range of hardware and
operating platforms.

Avalon developed its SYBASE version of CIIM in Sybase's fourth generation
language (4GL) environment, APT Workbench, to deliver a more tightly
integrated solution than other manufacturing systems which are linked to
SYBASE through an interface or gateway. CIIM on SYBASE delivers
client/server architecture, high OLTP performance, and connectivity to
companies moving towards open, integrated manufacturing environments. CIIM
currently operates on Version 4.8 of the SYBASE SQL Server.

Avalon has over 100 blue-chip customers worldwide spanning diverse
industries such as automotive, pharmaceutical, electronics, and
aerospace/defense. Customers include two AT&T sites, AutoLite (a division
of Allied Signal), Volkswagen de Mexico, General Dynamics, Procter &
Gamble, SAAB-Scania (Sweden), and Hoechst-Roussel. CIIM is sold through a
direct sales force as well as through distributors in Europe,
Asia/Pacific, and Latin America.

Avalon Software, 3716 East Columbia, Tucson, AZ  85714-3414
(602) 790-4214;   Fax: (602) 750-0822

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