Vendor Managed Inventory Continues Strong Growth Trend; EDM Datalliance Customer Base Realizes Significant Growth

CINCINNATI--Feb. 1, 20055, 2005--Enterprise Data Management

-- International Use Expanded to Central America, Europe, Asia, and Australia

-- Existing VMI Users Continue to Realize Value and Expand Use

Based on several industry sources, Vendor Managed Inventory (VMI) technology continued a strong growth trend throughout 2004. Enterprise Data Management (EDM), a leading provider of Internet-based VMI services, realized a significant increase in customer base VMI activity:

-- Number of locations managed by VMI increased 66%

-- More than $4.5B in VMI sales transactions processed through Datalliance system

-- Number of suppliers with VMI capability increased by 40%

International VMI Usage Expanded

In addition to these growth statistics, EDM's Datalliance VMI service experienced expanded international usage. A growing number of EDM customers are now utilizing Datalliance to manage inventory in Central America, Europe, Asia, and Australia.

Existing VMI Users Continue to Realize Value and Expand Use

Chicago Rawhide is the world's leading provider of fluid sealing devices and an early adopter of VMI. Craig Young, Director of Electronic Commerce for Chicago Rawhide, explained, "We are constantly striving to improve our overall business processes and directly impact our ability to service our customers. We recognized VMI as a means to increase product sales and improve efficiencies for ourselves and our distributors. Today, in addition to being the preferred supplier based on quality and price, our customers recognize us for superior service levels. In 2004 we continued to realize the business benefits of VMI as we expanded our VMI implementation to an ever growing list of our valued distributors."

Carl Hall, president of EDM, stated, "The consensus seems clear; VMI is commonly recognized as one of the supply chain applications that delivers clear value to all parties in a variety of industries. Over the course of 2004 we experienced an increased usage of VMI in Medical Products, Aviation, and Automotive industries as well as in the traditionally strong VMI industries of Heavy Duty, Electrical, and General Industrial. In addition to our 2004 growth, we have already signed up four new VMI users in 2005. With this strong start in 2005, we anticipate continued growth in both the interest and implementation of VMI across all industries."

About EDM and Datalliance

Enterprise Data Management is an Application Services Provider with over 13 years of experience designing, developing and executing mission critical supply chain systems for Fortune 500 companies. As a result of our extensive industry and technology experience, EDM has developed Datalliance, a comprehensive VMI-based e-commerce service. Datalliance enables suppliers and their customers to establish effective VMI relationships quickly and easily as well as facilitating collaboration across the Internet. Datalliance customers include companies such as: Rockwell Automation, Goodyear Tire and Rubber Company, ArvinMeritor and Chicago Rawhide. For more information about Datalliance and VMI, please visit: www.datalliance.net.