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Nematron to Supply OpenControl Systems to General Motors Powertrain Group

23 September 1997

Nematron to Supply OpenControl Systems to General Motors Powertrain Group

    ANN ARBOR, Mich., Sept. 23 -- Nematron Corporation
said today that it will supply General Motors
Powertrain Group with a completely integrated OpenControl(TM) solution
operating on Microsoft's Windows NT for a major new engine program.  No
specific details or terms of this agreement were announced.  OpenControl
replaces programmable logic controllers while effectively allowing enterprise
access to the plant floor.
    "I believe this to be a major milestone in the broad acceptance of
PC-based control using open architecture solutions, flowchart programming, and
Microsoft's Windows NT," said Frank G. Logan, III, Nematron's President and
CEO.  "This is the first major program in the world to adopt a complete Intel
Pentium-based PC and NT-based solution for the controls portion.  We have
worked diligently for the last two years to design this fully integrated
complete solution that carries forward our previous success with DOS-based
FloPro running in several plants at GM Powertrain.
    "As tier-I machine builders and OEM's begin to use this new technology and
see the benefits of streamlined development, lower cost, improved diagnostics,
and enhanced machine performance, I expect they will carry it into new
accounts and markets.  I believe this clearly establishes Nematron as the
premier supplier of open architecture, PC-based controls."
    The completely integrated automation solution operates with the Microsoft
windows NT 4.0 operating system (supplied as part of this system) and includes
several Nematron and NemaSoft products:

    *  Hyperkernel Real-time subsystem for Microsoft's Windows NT -- developed
       by Imagination Systems, Inc. (ISI), a wholly-owned subsidiary of
       Nematron Corporation.  This real-time subsystem enables real-time
       deterministic performance with standard off-the-shelf Windows NT.

    *  OpenControl Development Framework for Microsoft's Windows NT -- an
       IEC-1131 compatible development environment for advanced machine
       control; includes an additional structured flowchart language.

    *  FloPro(R) for Microsoft's Windows NT -- a 32-bit update to the proven
       run-time control-logic engine already running over 2,000 machines at
       General Motors.

    *  Paragon97(TM) HMI -- a 32-bit Windows NT-based operator interface;
       developed by Intec Controls, which was merged into Nematron's NemaSoft
       subsidiary earlier this year.

    *  Industrial Control Computer(TM) (ICC) series -- the hardware platform
       into which NemaSoft and ISI software will be fully integrated and
       pre-installed.  The series includes the ICC-5000, ICC-6000, and
       ICC-7000 Pentium-based systems.  The ICC series recently passed
       Microsoft's Windows NT Hardware Compatibility Test (HCT) program and
       has patented technology to reduce MTTR and ease installations.
    In addition, Nematron will provide related program management, training,
application development support and technical services.
    NemaSoft is a Microsoft Solution Provider partner.  The Microsoft Solution
Provider program links experts in Microsoft technology with companies and
organizations looking for Microsoft-based solutions.  Teaming with Microsoft
offers the opportunity to expand our business, gain access to leading edge
technologies, and enter into a powerful, worldwide community of value-added
business.  Not only does the Microsoft Solution Provider program clearly
identify NemaSoft as having a special relationship with Microsoft; it connects
us with a worldwide community of industry colleagues who can help us boost
market penetration and increase brand awareness even further.
    The discussion in this news release includes forward-looking statements
based on current management expectations.  Factors that could cause future
results to differ from these expectations include:  general economic
conditions related to automotive manufacturing and machine building,
competitive factors (including the introduction or enhancement of competitive
products) that could result in the loss of expected major project revenues,
pricing pressures, changes in customer requirements, evolving industry
standards or any additional factors described in the Company's reports filed
with the Securities and Exchange Commission.
    Nematron designs and manufactures PC-based industrial automation products
that include software for direct machine control, process visualization, and
data acquisition.  In addition, the Company produces enabling hardware
products that leverage or support its software.  Nematron's subsidiaries
develop software products that cover a broad spectrum of applications,
including software designed for the Microsoft Windows NT operating system.
Nematron pioneered the operator interface segment of factory automation 1983
with the introduction of the Industrial workstation(TM).  For additional
 information about Nematron, visit our Web site at http://www.nematron.com.
    GM Powertrain is the world's largest producer of engines, transmissions,
castings, and components.  With its headquarters in Pontiac, Michigan, the
group employs 57,000 people at 26 manufacturing plants and eight engineering
centers.

SOURCE  Nematron Corporation