Automotive News Honors Pelion Systems as a 2007 PACE Award Finalist

BOULDER, CO -- (MARKET WIRE) -- November 8, 2006 -- Pelion Systems, a market leader in Manufacturing Operating Systems powered by Lean principles, today announced its selection as a finalist in the prestigious 2007 Automotive News PACE Award competition. The 13th annual PACE (Premier Automotive Suppliers' Contribution to Excellence) Award, presented by Microsoft, SAP, Transportation Research Center Inc. (TRC Inc.) and Automotive News, is accepted around the world as the industry symbol of innovation.

Pelion's Lean Manufacturing Operating System is a finalist in the award's Information Technology and Services category, which honors game-changing innovations in the design and implementation of information systems solutions that enable companies to improve operational performance or the delivery of services. The valued industry innovation provides manufacturers with an integrated platform to accelerate and sustain the realization of bottom-line value from Lean initiatives. Designed from the ground up to pull product and material through the supply chain efficiently using applications such as Value Stream Mapping, Lean Scheduling and Electronic Kanban, the Lean Manufacturing Operating System serves as a dynamic process modeling, analysis and execution framework to define, run and improve operations within and beyond the factory.

The technology has proven to dramatically reduce operating costs, cycle times and inventory for automotive manufacturers and suppliers while improving customer service and taming the chaos associated with flexible manufacturing. One user of the system in the auto industry has commented that Pelion helped drive more Lean culture change and benefits during the first six months of implementing the software than in the previous six years of the plant's "Lean Journey" combined.

"We feel honored to be recognized as a finalist for this prestigious award," said Kevin Fallon, CEO of Pelion Systems. "We are deeply committed to our partnership with the automotive industry and will not cease in our efforts to bring manufacturers into a healthier state of operations. There are some who believe that software is the antithesis of Lean thinking, but as we have proven in our work with major Tier 1 automotive suppliers and other customers, the use of an integrated system driving consistent and sustainable Lean performance can make a tremendously positive impact on the manufacturing environment in a very short period of time. The payback is days and weeks, not months and years."

Pelion, along with other PACE Award finalists, will undergo an extensive review process -- including a site visit -- by industry, academic and business leaders to select award winners. Winners will be announced during the 2007 Society of Automotive Engineers conference in Detroit at a gala ceremony at the Max M. Fisher Music Center on April 16.

Recognizing superior innovation, technological advancement and business performance, the Automotive News PACE Award is open to suppliers that contribute products, processes, materials or services directly to the manufacture of cars or trucks. For complete details of the 2007 Automotive News PACE Award visit www.autonews.com/PACE.

About Pelion Systems

Pelion Systems is a market leader in Lean Manufacturing solutions that drive flexibility to help manufacturers solve the customer service vs. profitability challenge. Working with Pelion's expert consultants, Lean Manufacturing Operating System, and individual workbenches, companies with complex processes and production environments are able to achieve rapid transformations and continuous improvements in areas such as labor, inventory and shipping costs while simultaneously improving cycle time and delivery capabilities. Pelion's technology integrates easily with and extends the value of existing ERP, SCM, and plant-floor systems. Solutions are able to scale from a single facility to an extended enterprise implementation, applying Lean principles to synchronize production, supply and distribution and form a true demand-driven network. Pelion is headquartered in Boulder, Colorado, with sales offices in Detroit and Chicago. For more information, please visit www.pelionsystems.com.

Contact Information: Press and Analyst Contacts: John Howlett Pelion Systems 720-890-2800, ext. 160 john.howlett@pelionsystems.com Adrienne McGarr Ruder Finn for Pelion Systems 312-329-3907 mcgarra@ruderfinn.com