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AppliedTheory and Automotive Consulting Group Launch Alliance

30 August 2000

AppliedTheory and Automotive Consulting Group Launch Strategic Alliance With Report on e-Business Solutions

     Alliance Aims to "Jump Start" Profitability for Automotive Suppliers

    ANN ARBOR, Mich., Aug. 30 An annual report on trends in
the automotive supply industry concludes that the proper use of e-Business
tools could save the worldwide supply chain an estimated $174 billion by 2005.
Yet less than 20 percent of all suppliers have even partially implemented an
e-Business strategy.  The September report, "Business Performance Trends Among
Automotive Suppliers," launches an alliance between the Automotive Consulting
Group (ACG), a strategic and technological business consultant to the global
automotive industry, and AppliedTheory Corporation , a leading
provider of comprehensive Internet Business Solutions.  This is the third
trend report ACG has produced and the first to include a special study of
e-Business.
    ACG and AppliedTheory have combined their expertise to deliver e-Business
strategy development and implementation services to the worldwide automotive
industry.  This innovative alliance combines ACG's experience in developing
high-performance business models with AppliedTheory's expertise in
implementing and operating Internet-based solutions to offer customers
best-in-class business-to-business solutions.  The alliance partners are
currently developing new technology designed to facilitate automotive industry
research and information management.
    According to Danny Stroud, executive vice president of AppliedTheory, "We
have watched the automotive industry quickly embrace the concept of using the
Internet to improve profitability.  Last year we took steps to position
ourselves to respond to the industry's need for support in developing
Internet-based business processes by opening an office in Detroit.  Together
with ACG we will provide solutions that integrate customers, suppliers and
partners into extensive business-to-business networks.  We expect these
solutions to help the automotive industry remain competitive in a global
economy."
    "What makes this partnership unique is our ability to provide a single
source for e-Business strategy and customized implementation.  AppliedTheory
enables us to offer the technology, flexibility and customization the global
automotive supply chain needs to thrive in this e-Business era," said Dennis
Virag, president of ACG.
    As the automotive industry prepares for a transition, the ACG and
AppliedTheory alliance will significantly impact the supply chain.  Bringing
together all the facets of automotive supply process management under one
umbrella, including planning, purchasing, product development, manufacturing,
inventory and logistics, the ACG and AppliedTheory solution will help
customers boost profitability and leverage the emerging e-Business
opportunity.  The ACG alliance further establishes AppliedTheory as a leader
in the growing arena of business-to-business Internet solutions for supply
chain purchases.