CIP Software to become a strategic partner of CDC Software to support its "Executive Suite" Business Intelligence product line
Hong Kong, November 25, 2003 — CDC Software, a wholly-owned and software unit of chinadotcom corporation [NASDAQ: CHINA; Website: www.corp.china.com], a leading integrated enterprise software and mobile applications company in China and internationally, today announced a strategic investment in CIP Software A/S ("CIP"), a European-based software company, with the intention to acquire a 100% holding in the company, as a strategic move to further enhance its Enterprise Resource Planning ("ERP") software strategy.
In addition to the investment, CDC Software and CIP also entered into a Master Distribution Agreement ("MDA"), whereby CIP will be the exclusive distributor for CDC Software to support and conduct sales of "Executive Suite", a leading financial performance management and Business Intelligence ("BI") application based on Microsoft technology, in the territories of Europe, the Middle East and Africa. CDC Software itself will focus on the sale, distribution and localisation of Executive Suite for the Asia Pacific region. CIP operates a software development center in Vejle, Denmark, which complements and strengthens the global development capabilities of CDC Software, which includes development centers in Shanghai, China, and Stockholm, Sweden. As part of the agreement, a number of CIP's development team members are expected to be relocated to CDC Software's software development center in China to provide onsite support and training to customers of Executive Suite located in China.
Steve Collins, Managing Director of CDC Software, commented: "We are pleased to announce this strategic investment in CIP as it further strengthens our software presence in Europe and demonstrates our continuous commitment to expansion in the software sector through establishing strategic partnerships. BI tools are key to providing enhanced functionality within an extended ERP product offering, and we are excited about the combination of our proven Executive Suite software tool, CIP's established presence across Europe, and CDC Software's strong knowledge of the local business environments across the Asia Pacific region. With the help of CIP, and working with Microsoft internationally, we plan to incorporate our BI software products into our current ERP product offering. We believe that this strong combination will help customers rapidly realise the value inherent in BI solutions."
"The combined strengths of CIP and CDC Software will help strengthen our global software development platform for the development of new products and technologies. As a result, we expect significant synergies can be developed between the two companies, for example through lowering CIP's R&D costs by potentially outsourcing its product development work to our cost-efficient software development center in China, and by cross-selling to our combined customer base of over 1,000 enterprises worldwide," Steve Collins continued.
Jesper Vork, CEO of CIP Software said, "The founding vision of CIP was to provide a complete financial management solution that would be accessible to all organizations, regardless of their size. Combining CIP's established experience in the financial management arena with CDC Software's strength and global presence will enable us to fully deliver on this vision. It is a vindication of our early customers' faith in CIP and I look forward to an exciting future together."
The investment in CIP is CDC Software's fourth strategic initiative aimed at enhancing its global software strategy, following the recent acquisitions of Industri-Matematik International Corp. ("IMI"), a leading provider of Supply Chain Management ("SCM") solutions, Executive Suite, a leading BI tool, and its intention to acquire a 100% stake in Ross Systems Inc. ("Ross"), a global provider of ERP software solutions.
About CDC Software and chinadotcom
chinadotcom corporation (NASDAQ: CHINA; Website: www.corp.china.com) is a leading integrated enterprise software and mobile applications company focused on two of the fastest growing business segments - manufacturing and mobile - in China and internationally. The company has over 1,000 employees with operations in over 14 countries.
CDC Software, a wholly owned subsidiary, is focused on the large manufacturing for export sector in China, as well as internationally. Recently it completed the acquisition of a controlling stake in Industri Matematik International ("IMI"), an international provider of mission critical SCM software for multinationals and large enterprises, based in New Jersey, U.S. with key operations in the U.S and Europe. In addition, the company has established strategic partnerships with leading international software vendors to localize and resell their software products throughout the Asia Pacific region. It currently has over 1,000 customer site installations and 600 enterprise customers in China and internationally. The company recently announced the intention to acquire Ross Systems, Inc. ("Ross"), a NASDAQ-listed global provider of enterprise software for process manufacturers based in Atlanta, U.S. with significant subsidiary operations in Western Europe. It expects to conclude the acquisition of Ross by no later than the first quarter of calendar year 2004, subject to Ross' shareholder approval and certain regulatory approvals.
CDC Outsourcing, a wholly owned subsidiary, aims to take advantage of the global trend of companies looking to outsource to China by positioning its CMM (Capability Maturity Model) Level 3 certified Software Development Center's capabilities as an outsourcing conduit for economical, high-quality software development for the large customer base of our acquired companies. Its current outsourcing capability includes operations in the United Kingdom, Australia, and the US, with some 350 consultants, complemented by a partnership with vMoksha in India with over 500 more outsourcing staff servicing software companies internationally.
For more information about chinadotcom corporation, CDC Software and CDC Outsourcing, please visit the Web site http://www.corp.china.com.
About CIP Software A/S
CIP Software, headquartered in Denmark, with operations and channel partners within Europe and Africa, is a leading provider of financial management solutions.
Executive Suite is a fully integrated financial management application delivering budgeting, planning, forecasting, consolidation, reporting and analysis to a broad spectrum of customers. Executive Suite not only significantly reduces the price entry point and long term cost of ownership for this type of solution, but also provides a richness in productivity enhancing features unparalleled in the market place. The software is based on MicrosoftR .NET and MicrosoftR SQL platform which allows quick and easy access via web-based technology and the MS Office interface.
Executive Suite users include Scandlines, Sydbank, Storck, SBS Services, Ramboll, Arovit, Wates Group and Guildford Borough Council.
Safe Harbor Statements
This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on chinadotcom management's current expectations and are subject to risks and uncertainties and changes in circumstances. All forward-looking statements included in this press release are based upon information available to chinadotcom as of the date of the press release, and it assumes no obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. Further information on risks or other factors that could affect chinadotcom's results of operations is detailed in its filings with the United States Securities and Exchange Commission, including the Annual Report for the year ended December 31, 2002 on Form 20-F filed on June 16, 2003 and the Form 6-K filed on October 3, 2003 which contain revised and updated sections of the Form 20-F.
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