Optiant Customer Imation Wins Start Magazine's Technology and Business Award

Optimized Postponement Strategy Sets New Industry Standard for Supply Chain Performance

BOSTON, MA (Sept. 20, 2002) -- Imation Corp., a global leader in removable data storage media, has been selected as the 2002 winner of Start Magazine's prestigious Technology and Business Award, for its innovative use of Optiant's PowerChain software for supply chain design and optimization.

Imation was selected for the award based on the groundbreaking success it achieved with the implementation of the PowerChain suite from Optiant. Imation's objective was to develop and implement a re-designed supply chain within its Data Storage and Information Management Division to help the electronic media giant deliver over 7,500 product options to market with the highest possible customer service levels for its retail outlets.

Using Optiant's PowerChain suite to design its optimal supply chain, Imation successfully met its business goals for increasing market share with new custom packaging options and executing the most responsive and timely delivery performance. Within only a few weeks, Imation increased customer service levels by 25 to 30 points and reduced total inventory investment by 20 percent.

"We're very excited to be recognized for our use of cutting-edge technology," said Dana Smith, project manager at Oakdale, Minn.-based Imation. "We have long believed in the value of innovation and the power of the supply chain in supporting our business - with Optiant we will be able to combine the two for powerful results."

Imation selected Optiant after a careful evaluation of its needs and requirements for a packaging postponement and inventory strategy. Imation selected Optiant because of the company's established supply chain expertise and the software's ability to pinpoint the optimal balance between customer responsiveness, cost containment, and inventory. Most significantly, Imation appreciated the PowerChain suite's robust modeling capability under an intuitive GUI. The cross-departmental teams were able to compare hundreds of alternative supply chain structures in seconds and quantify - in dollars - the impact of postponement strategy decisions on the entire supply chain.

"Imation's team took a bold step by demonstrating the importance of establishing a comprehensive technology selection process," said Peggy Smedley, editorial director of Start Magazine. "The challenges they faced were significant, but the final supply chain solution is proving to help Imation continue down the road not only as a leading manufacturer, but a technology visionary as well."

Imation has just completed an upgrade to Optiant's PowerChain 4.0, announced earlier this week. Imation will take advantage of new features, such as time phasing, service level optimization, and cycle time optimization, designed to help manufacturers meet the fluctuations in any business environment to strike just the right balance between supply and demand. Imation's experiences played a critical role in the evolution of the software to model and optimize even the most complex supply chains under the solution's remarkably intuitive GUI.

"Imation has truly established a new standard for supply chain performance in the manufacturing industry," said Jim Lawton, vice president of product management for Optiant. "We are pleased to have helped them exceed their business goals."

About the company
Optiant is a pioneer in the emerging market of supply chain design and optimization. Optiant's flagship software solution, the PowerChain™ suite, enables global organizations to design and configure optimal supply chains, solving real-world problems today. PowerChain determines cost-effective inventory placements and integrates supply chain strategy into sourcing and distribution processes for quantifiable results in less than ninety days. Optiant has proven that intelligent inventory policies improve customer service levels and provide rapid ROI by driving out millions of dollars of associated costs from complex supply chains. Our roster of blue-chip clients, including Global 1000 discrete manufacturers, utilizes Optiant's expertise to design competitive supply chains and innovative inventory policies. PowerChain solutions are built on patent-pending optimization technology based on more than ten years of leading-edge research and industry partnerships at the Massachusetts Institute of Technology. Optiant is a privately-held company headquartered in Boston, Mass., and can be reached at www.optiant.com or (781) 238-8855.

Optiant and PowerChain are trademarks of Optiant, Inc. All other trademarks are property of their respective owners.