Catalyst Introduces New Inventory Optimization and Demand Management Software

Applications Analyze Historical Inventory Data and Current Demand to Help Eliminate Excess Stock and Reduce Lost Sales

MILWAUKEE, Sept. 2, 2003 -- Catalyst International, Inc. (OTC Bulletin Board: CLYS), a global provider of supply chain execution (SCE) solutions, today announced that it is offering new software solutions to better manage inventory and more closely align supply and demand. CatalystCommand(TM) Inventory Optimization and CatalystCommand Demand Management automate the forecast-to-replenishment process. These new applications typically provide a return on investment within six months through reducing lost sales, eliminating excess stock, and recovering profit from inventory -- all of which contribute to significant increases in cash flow.

CatalystCommand Inventory Optimization and CatalystCommand Demand Management leverage data from existing ERP, transaction and POS systems to provide advanced functionality in the form of demand forecasting, automated supply analysis, inventory modeling, replenishment and distribution. The system analyzes historical data on supply and demand, taking into account seasonality, promotions, and lost sales, and then makes recommendations on how much inventory is needed and where it is required. The system can be up and running within six weeks.

"Inventory optimization offers the single largest opportunity across the entire supply chain for immediate cost savings and increased profits, yet surprisingly, many businesses are unequipped to take advantage of it. The system can take into account the most subtle influences and create forecasts and replenishment instructions based on what has been sold historically while considering promotional constraints and other factors," said John Gorman, Executive Vice President, Operations.

Gorman continued, "Stockouts and lost sales are virtually eliminated, so customer satisfaction and revenue are improved due to the right product being available at the right place and at the right time. Excess stock is significantly reduced as well. This increases profitability by avoiding markdowns and write offs. As a result, companies have a lower working capital cost and hold less stock, while increasing efficiencies and revenues."

About Catalyst

Catalyst International, Inc. (OTC Bulletin Board: CLYS) delivers software and solutions that enable companies to optimize the performance of their enterprise supply chains. Catalyst is the only resource that combines 24 years of industry leadership in warehouse and logistics software development with an in-depth understanding of ERP systems. Catalyst has provided successful SCE solutions for customers around the world, including Boeing, Brown Forman, Maybelline, Office Max, Osram Sylvania, Panasonic, Rayovac, Subaru, and The Home Depot. It is headquartered in Milwaukee, WI and has offices or representatives in the UK, Italy, France, Mexico and South America. For more information, call toll-free 800-236-4600 or visit http://www.catalystinternational.com .

SOURCE Catalyst International, Inc.

Web Site: http://www.catalystinternational.com