Catalyst International Announces Intent to Acquire Provider of Implementation Services for SAP LES

Expands its SCE implementation and support services with the acquisition of Catalyst Consulting Services, Inc.


Milwaukee, WI, October 29, 2002 — Catalyst International Inc. (NASDAQ: CLYS), a global provider of supply chain execution (SCE) solutions, today announced it has signed a letter of intent to acquire Philadelphia area-based Catalyst Consulting Services, Inc., a leading independent provider of consulting, implementation and support services for the SAP Logistics Execution System (SAP LES). Catalyst Consulting Services is a US-based, certified SAP Services Partner focusing on the implementation of SAP LES, a component of mySAP™ Supply Chain Management (mySAP™SCM).

“Catalyst Consulting’s strong market position and solid reputation made it the ideal partner to help us accelerate the growth of our service offerings to the SAP LES customer base,” said James B. Treleaven, President and CEO of Catalyst International. “Services have been central to our partnership with SAP over the years. This demonstrates our continued commitment to providing a complete suite of high-quality services to SAP LES customers.“

Catalyst Consulting serves primarily Fortune 500 companies with the implementation of SAP’s warehouse management solution, which is a part of the SAP Logistics Execution System. The company also provides services for the SAPConsole solution.

“Over the past seven years, we’ve been privileged to help our customers better leverage their investment in SAP solutions. By joining the Catalyst International team, we look forward to extending our breadth of services to a larger base of customers,” said Michael Godshall, President of Catalyst Consulting Services.

Catalyst International expects to sign a definitive agreement in January 2003, subject to approval by its board of directors. The final purchase price will be payable in stock, cash and earn-outs. Catalyst expects the transaction to be accretive to earnings in 2003. Catalyst Consulting employs approximately 30 associates.


About Catalyst Consulting Services, Inc.

Founded in 1996, Catalyst Consulting Services, Inc. provides a full range of logistics consulting, integration, implementation, customization and training services to SAP LES customers, including wireless enabling of SAP applications and a full line of sales, implementation and support services for mobile data collection and wireless networks. Catalyst Consulting was the first to implement SAPConsole (native RF data collection for SAP R/3) in North America. Its customers include American Standard Companies, Armstrong, Bristol-Myers Squibb, International Multifoods, Mott’s, Office Max, Rohm & Haas, The Tractor Supply Company, U.S. Surgical and Visteon among other Fortune 500 companies. For more information, visit www.catalyst-pa.com.

About Catalyst International, Inc.

Catalyst International, Inc. (NASDAQ: CLYS) provides software and services to help companies optimize their supply chain performance. For more than 20 years, the company has enabled global Fortune 500 customers to greatly minimize the risks of installing, integrating and operating SCE software in complex, high-volume warehouse facilities. Catalyst software offers the broadest functionality in the industry and is easy to install, modify, upgrade, and maintain. Its broad array of services includes distribution strategy consulting, pre- and post-implementation audits, and CatalystCareSM, the industry’s most comprehensive and flexible support program for managing SCE technology.

Catalyst has provided successful SCE solutions for many well-known customers around the world, helping them to meet aggressive performance improvement objectives. Customers include Boeing, The Container Store, The Home Depot, Maybelline, Perdue Farms, Rayovac, Reebok, Sony Music, and Subaru of America. It is headquartered in Milwaukee, WI, and has offices or representatives throughout the U.S., and in London, the U.K., Italy, Mexico, and South America. For more information, call toll-free 800-236-4600 or visit www.catalystwms.com.

SAP, mySAP, R/3 and all other SAP product and service names mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries. All other trademarks are the property of their respective owners.

For More Information

Contact: Wendy Erwin
Phone: 414-362-6785
email: werwin@catalystwms.com