SOURCE: Sabrix, Inc.

August 23, 2007 09:01 ET

Sabrix Managed Tax Service Puts Muscle Behind Sales and Use Tax Compliance

Power Systems, a Leading Sports and Fitness Company, Achieves Hassle-Free Compliance and Frees Up Finance Personnel to Focus on Growth

SAN RAMON, CA--(Marketwire - August 23, 2007) - Sabrix, Inc. announced today that Power Systems, a leading sports performance and fitness equipment company, is using the Sabrix Managed Tax Service (MTS) to outsource tax compliance. Sabrix MTS, an outsourced sales and use tax compliance service for small- to mid-sized companies, combines an on-demand version of Sabrix software with the services of experienced tax professionals to address the complete compliance process for Power Systems. As the company grows, Power Systems expects Sabrix MTS to free up hundreds of hours every month and enable its finance team to focus on more strategic tasks.

Founded in 1986, Tennessee-based Power Systems, Inc. is a market-leading provider of affordable, professional-grade health, exercise, sports performance and fitness equipment to coaches, athletes, fitness experts, and the general public. The company's strong growth in the fitness industry has created increasingly complex sales and use tax requirements, as well as potential audit exposure across multiple states.

"Our company is in the business of selling sports and fitness equipment, not managing sales and use tax," stated Power Systems CFO, Mike Akers. "Managing this complex process was diverting too much of my staff's time from more growth-oriented and customer-satisfaction activities. It required keeping tax expertise on staff, constantly updating the tax rates, and staying up-to-date on tax laws. With Sabrix MTS, we outsource the entire tax compliance process -- just like payroll. Sabrix is our trusted partner, assuring us that we remain compliant even as our business grows."

Prior to using Sabrix MTS, Power Systems was paying $15,000 annually to purchase tax rate tables, and members of Akers' team were spending the better part of 11 days every month manually updating tax tables and preparing and reviewing returns. Despite this investment, Akers was concerned that incomplete tax jurisdiction coverage as well as discrepancies between the taxes calculated for a quote versus the taxes that actually appeared on an invoice could lead to non-compliance and subject the company to audit exposure, penalties, and interest or having to pay the tax themselves. Akers selected Sabrix MTS because it was the only outsourced service that could cover his company's entire sales and use tax needs from start to finish, including address validation, tax rate maintenance, tax determination and calculation, return preparation, and document support for audits.

Based on several months of filing returns with Sabrix MTS, Akers expects to save thousands of personnel hours per year, which eliminates the need for an additional full-time employee. In addition, Akers is more comfortable that the company will remain compliant as the company continues to grow. "The choice to use Sabrix MTS was a no-brainer, and when we did, we quickly realized its value and the fact that Sabrix does have the expertise to address our compliance needs -- from up-to-date rates to accurate tax determination to expert audit support. We are now able to focus more of our internal resources on other financial processes, such as payables and receivables, and, more importantly, on growing the business."

A more comprehensive case study on Power Systems' use of Sabrix MTS can be found at http://www.sabrix.com/smb/customers/powersystems.php. Sabrix's innovative approach to sales and use tax compliance has gained significant momentum in the marketplace, attracting small- and mid-sized customers across a variety of industries, such as manufacturing, financial services, and e-commerce. Recently signed customers include BankServ, Esker, Metro Door, Stulz Air Technology Systems, and Ultra International.

Sabrix MTS is available as a subscription service, allowing companies to pay based on their usage. More information is available online: http://www.sabrix.com/managedtaxservice.

About Sabrix

Sabrix, Inc. is a leading provider of transaction tax management for companies of all sizes, enabling finance, tax, and IT professionals to achieve accurate, timely, and cost-effective compliance for sales tax, use tax, value-added tax (VAT), excise tax, and industry-specific taxes and fees. Sabrix MTS, an outsourced transaction tax compliance service for small- to medium-size businesses, helps finance departments eliminate the hassle, control their audit exposure, and reduce the total cost of sales and use tax compliance. The Sabrix Application Suite of enterprise software has been deployed at a number of global companies, such as Amazon.com, BASF, Cisco, DTE Energy, IBM, QUALCOMM, Sportsman's Warehouse, and York International. The Sabrix Application Suite seamlessly connects to all financial applications that require the determination, calculation, and recording of transaction taxes. For more information, please visit www.sabrix.com.

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