20-20 Technologies Inc.
TSX : TWT

20-20 Technologies Inc.

January 15, 2007 19:53 ET

20-20 Technologies Enters the North American Cabinetmaker/Woodworker Software Market

LAVAL, QUEBEC--(CCNMatthews - Jan. 15, 2007) - 20-20 Technologies Inc. (TSX:TWT), a world leader in 3D design and sales software, computer-aided design and manufacturing solutions for the interior design industries, has successfully completed the previously announced acquisition of the assets, business and software solutions of Pattern Systems International, Inc. ("PSI") of Mount Arlington, New Jersey for US$ 775,000, plus US$ 225,000 in additional consideration conditional upon the delivery of certain projects in the future.

PSI develops computer software products for distribution through dealers and sales representatives designed for the cabinetmaker, architectural millwork and woodworking industries. Robert A. Gowen, founder of PSI, will act as the General Manager of the 20-20 newly created Pattern Systems sales group. Donald R. Imbimbo will work with the Operations/Development group of 20-20 to create and maintain the 20-20/PSI solutions for the cabinetmaker/woodworker software market. Both executives bring a wealth of North American and International experience in the cabinetmaker/woodworking industry.

The small cabinetmaker and woodworker market is as significant a market for software in North America as the dealer "design systems" market that 20-20 has catered to over the years. AutoCAD-based solutions constitute a significant portion of that market. Up to this point, 20-20 and Virtual Systems had been addressing, with the AutoCAD-based 20-20 CAD and ImosCAD applications, mainly the engineering departments of medium to large manufacturers within the interior design industries.

The PSI acquisition enriches 20-20's AutoCAD-based software portfolio of products, each of them tailored for specialized sub-segments of the woodworking market. The firm can now offer to each sub-segment the most appropriate product: 20-20 CAD (owned by 20-20 since 2002), ImosCAD (distributed exclusively in North America by 20-20 under a long term contract with Imos AG from Germany) or Pattern's Drawpower.

"We operate in a world of very specialized niches, and our competitors currently address these niche markets with 'one-size-fits-all' products. 20-20 will offer each of its AutoCAD-based products to a defined type of cabinetmaker or woodworker, with products and solutions that better meet the specialized needs of each of these sub-segments," said Jean Mignault, CEO of 20-20.

20-20 Pattern Systems group will continue to prioritize the satisfaction of its current customer base. This team will also market and support the AutoCAD-based woodworking software applications above, along with other Pattern's products (Product Planner, Drill Mate, QuickTrak) and 20-20 CAM ("Computer Aided Manufacturing") tools. The 20-20 Pattern Systems group will also market 20-20 Design for Manufacturing PRO, a product bridging sales to manufacturing and allowing engineering at the point-of-sale.

The Pattern Systems acquisition additionally brings to 20-20's proprietary product portfolio the Cut Planner application, a leading automated sheet panel cutting optimizer that saves time and material for cabinetmakers and woodworkers, while reducing waste and risk of errors. A cutting optimizer was the very last component in manufacturing applications 20-20 did not own prior to the acquisition. The CutPlanner application thus enhances the 20-20 end-to-end solution and will be integrated to add value to many 20-20 software products. 20-20 supports and will continue to enhance links with the Stiles CutRite Optimizer application through its 20-20 BuildRite software application and with other available optimizers used by the North American woodworking industry.

Furthermore, the acquisition will contribute positively to UK and New Zealand / Australia operations of 20-20. Historically, PSI's distributor in the UK has worked closely with the 20-20 UK subsidiary, and can therefore contribute significant expertise in the manufacturing area. The Pattern distributor for New Zealand also happens to be the 20-20's distributor for New Zealand and Australia.

"This is an important step in establishing 20-20's presence in the woodworking/cabinetmaker markets," said Mr. Mignault. "The combination of our expanding 20-20 and PSI product portfolio, along with the addition of a professional sales team, strengthens our comprehensive offering to this very important market."

Jean-Francois Grou, President and COO of 20-20, added: "We are confident that 20-20 will rapidly become one of the key providers of integrated cabinetmaker, architectural millwork and woodworking applications in North America." In Europe, 20-20 already serves the woodworking software market through the operations it acquired from CMS.

About 20-20 Technologies Inc.

20-20 Technologies is the world's leading provider of computer-aided design, sales software and manufacturing solutions tailored for the interior design industry. Dealers and retailers use its state-of-the-art design, specification, photo-realistic 3D rendering and management software for configurable and standalone products in the residential and commercial interior design markets. 20-20 also offers proprietary end-to-end solutions that include an integration platform between sales and manufacturing and world leading enterprise resource planning (ERP) systems, as well as computer-aided engineering and shop floor automation software. 20-20's software is sold in over 100 countries, used at over 35,000 points of sale worldwide. 20-20 now has catalog data for close to 1,000 manufacturers worldwide. The company is a publicly traded company (TWT) on the Toronto Stock Exchange (TSX) and celebrates its 20th anniversary in 2007. For more information, visit www.2020technologies.com.

Forward Looking Statements

Certain statements contained in this press release constitute forward-looking information within the meaning of securities laws.

Implicit in this information, particularly in respect of future operating results and economic performance of the Company are assumptions regarding projected revenues and expenses. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected.

For more exhaustive information on these risks and uncertainties you should refer to our most recently filed Annual Information Form which is available at www.sedar.com. Forward-looking information contained in this report is based on management's current estimates, expectations and projections, which Management believes are reasonable as of the current date. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it is under no obligation and does not undertake to update this information at any particular time, unless required by applicable securities law.

Contact Information

  • 20-20 Technologies Inc.
    Jean Mignault
    Chief Executive Officer
    Laval: (514) 332-4110
    or
    20-20 Technologies Inc.
    Steve Perrone
    Chief Financial Officer
    Laval: (514) 332-4110
    Website: www.2020technologies.com