Enterprise profit optimization software service uses profit-per-minute concept to increase cash and profit worth 3-5% of revenue

San Francisco, Calif., June 12, 2006 — Maxager Technology, the original provider of velocity-driven enterprise profit optimization solutions, today announced Maxager 7 with initial customers Dow Chemical Company, Nucor Steel, Owens-Illinois, and Siliconware Precision Industries.

A 100% Web-based software service, Maxager 7 enables manufacturers to expose profit gain opportunities that are obscured by traditional “margin only” analysis without the typical overhead and implementation cycle associated with enterprise solutions. Using both margin and production velocity information or “profit-per-minute” to analyze history and generate realistic forward modeling, Maxager 7 provides management teams an entirely new level of control over Return on Assets (ROA) — the key driver of shareholder value. Building on its historical analysis capabilities, Maxager 7 also includes “What-if” planning that enables proactive operational decision-making to increase profitability; and variance analysis, that compares plans to actual so that organizations can make mid-course corrections to their profitability plans.

“Having already applied the velocity concept [profit-per-minute] at a strategic level, we knew that this was the right approach for many of our businesses. However, applying the concept at an operational level was no easy task. Maxager, with its ability to provide granular velocity-driven analysis and planning helped take one of our business units to the next level,” said Paul Adair, global pricing process leader for The Dow Chemical Company.

Ideal for manufacturers with a wide range of products, customers and assets, Maxager 7 calculates precisely how fast each product, customer, or market generates cash and profit from the assets to enable managers to truly optimize operational activities such as product mix & customer mix profitability, sales & profit planning, strategic pricing and production planning.

“The big 'aha' came when we used Maxager’s exclusive contour map that clearly outlined our product and velocity tradeoffs, a view only possible through the Maxager system. We quickly discovered that many of our initial assumptions were not always correct; giving us the opportunity to truly maximize our product lines,” Adair added.

Unlike point solutions that only focus on portions of the profitability equation, Maxager 7 provides a common metric — profit-per-minute — that for the first time enables sales, marketing, production and finance to make operational decisions that collaboratively contribute to overall profitability goals. Revealing true profitability of products, customers, markets and facilities, the Maxager data can then enhance operational initiatives already being executed in the field resulting in an increase of cash and profit worth 3-5% of revenue. Common operational initiatives that can be optimized by first using

Maxager’s enterprise profit optimization solution include:

Sales and Marketing

• Product mix optimization
• Product rationalization
• Customer rankings
• Market segmentation
• Strategic pricing
• Sales & profit planning
• New product modeling
  

Finance

• Investment prioritization
• Performance rankings
• Portfolio management
• Profit monitoring
• Strategic planning
  

Production

• Facility profitability
• Capacity loading
• Alternate routings
• Lot size profitability
• Dollarizing downtime
• Dollarizing yield losses
• Capacity planning
  

Pricing and Availability

Maxager 7 is available now. Ongoing subscriptions are based on the respective company’s revenue. For more information about Maxager 7, email us at info@maxager.com or 1.888.MAXAGER (+1.888.629.2437).

About Maxager Technology
Founded in 1996, Maxager’s patented enterprise profit optimization (EPO) solutions help leading chemicals, metals, electronics and other complex manufacturers such as Dow Chemical Company, Nucor Steel, Owens-Illinois and Siliconware Precision Industries increase cash and profit worth 3-5% of revenue. Uncovering profit gain opportunities that are obscured by traditional “margin only” analysis, Maxager uses both margin and production velocity information to analyze history and generate realistic forward modeling that provides management teams an entirely new level of control over Return on Assets (ROA) — the key driver of shareholder value. Ideal for manufacturers with a wide range of products, customers and assets, Maxager’s unique technology calculates precisely how fast each product, customer, or market generates cash and profit from the assets, allowing managers to truly optimize product mix & customer mix profitability, sales & profit planning, strategic pricing, and production planning. New customers typically begin reaping benefits within 60 days. Maxager is headquartered near San Francisco with offices in Europe and Asia.