Press Releases

CDC Global Services' Catalyst XPS and SAPConsole Solutions and Services Help Double Throughput, and Cut Cycle Time in Half, for Avocent's Distribution Center

Solution and Services Helps Avocent Reduce Costs by Eliminating Need for Additional Space and Lowering Staff Headcount; Reports ROI within Three Months

PHILADELPHIA, PA , April 14, 2009—CDC Global Services, a business unit of CDC Software, announced today that its Catalyst SAP® services unit has successfully delivered a solution to Avocent Corporation, a leading provider of IT infrastructure management solutions, that combines CDC Software's Catalyst XPS, a cross-carrier packing and shipping system, and SAPConsole implementation services.

The solution was deployed at Avocent's Huntsville, Alabama and Shannon, Ireland distribution centers. The project helped Avocent streamline its operations and processes, while allowing for a significant reduction in staffing and operating costs with increases in order fulfillment accuracy and productivity. Avocent also reported that it has already achieved a return on its overall investment - within three months of implementation.

As Avocent grew, management realized the need to expand distribution capacity and throughput to accommodate fluctuations and overall increases in order levels. It was determined to avoid a costly implementation of additional staff or physical space to accommodate that growth, preferring instead to rely on technology to create the flexibility it needed.

"After speaking with other companies that had undergone a similar initiative, we devised an approach that would not only use an outside vendor, but also tightly integrate our internal support team to drive down project costs," said Robbie Gothart, distribution manager for Avocent. "Catalyst stood out to us because of its deep expertise when it comes to SAP warehouse management."

"XPS integrated seamlessly with SAP and Avocent's third-party carriers to simplify their packing and shipping processes, giving them enhanced visibility and expanded control over their order fulfillment processes," said Trey Jones, business development manager for Catalyst International. "By combining these technologies with a RF Handling Unit Consolidation transaction, we helped Avocent turn what had been a bottleneck into a competitive advantage."

XPS specifically helped Avocent address an operational blockage by decreasing the number of scans required to track outbound serial numbers, which allowed more than one person to use the system at the same time. This eliminated "locking" which helps improve efficiency and reduces the time it takes to process information on shipments. XPS helped Avocent reduce cycle times by half and almost doubled throughput. The organization is now better equipped to handle larger fluctuations in order volumes and improve customer service. In addition, Avocent was able to reduce its warehouse workforce by 22 percent, significantly increasing its operational cost savings.

Based on the project's success, Avocent utilized CDC Global Services to implement another similar solution in its EMEA Operations Center located in Shannon, Ireland.

"We believe that we have achieved the biggest bang for the buck with this initiative," said Gothart. "The impact was immediate, solid and noticeable."

A detailed case study is available for download on the Catalyst International Website.
CDC Global Services' Catalyst SAP business is a SAP services partner, specializing in building and implementing business solutions for enterprise requirements in supply chain execution, planning, and management. The Catalyst SAP services business excels at helping organizations with complex distribution networks in the retail, manufacturing, life sciences, process, and consumer packaged good sectors; as well as parts distribution for the automotive, aerospace, and electronics industries. CDC Global Services' Catalyst SAP business serves hundreds of customers around the world from its headquarters in Newtown, PA, U.S. and its European headquarters in London, England. For more information, please visit www.catalystsap.com. www.avocent.com.

About CDC Global Services

CDC Global Services, a business unit of CDC Software, provides IT consulting services, including platform-specific services for Microsoft and SAP, as well as project management, staff augmentation, managed help desk solutions and a full range of outsourced service offerings. CDC Global Services provides hardware for data collection and RFID, through partnerships with some of the industry's most reputable vendors. CDC Global Services customers benefit from streamlined vendor management and the ability to control project costs, while being able to access the right IT resources through a singular point of contact. For more information on CDC Global Services, visit: www.cdcglobalservices.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, and includes statements relating to the expected benefits of using Catalyst XPS to our customers, their employees, processes and businesses, our beliefs regarding the ease of use and functionality of Catalyst XPS, the ability of Catalyst XPS to address the needs of clients such as the ability improve supply chain efficiencies, improve customer service, drive cost savings and competitive advantage, our beliefs regarding the benefits of using our products and services, as well as other statements. These statements are based on management's current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward looking statements including, among others: the conditions of our vertical industries; the continued ability of Catalyst XPS solutions to address industry-specific requirements of companies in the our vertical industries; demand for and market acceptance of new and existing Catalyst solutions; and development of new functionalities which would allow our customers to compete more effectively in their respective industries. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Further information on risks or other factors that could cause results to differ is detailed in filings or submissions with the United States Securities and Exchange Commission made by CDC Corporation in its Annual Report for the year ended December 31, 2007 on Form 20-F filed on June 30, 2008 and amended as of September 15, 2008. Results will vary based upon individual customer facts and circumstances and other factors. All forward-looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward looking statements which speak only as of the date of this press release. The company assumes no obligation to update or alter the forward looking statements whether as a result of new information, future events or otherwise.

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Lorretta Gasper
CDC Software
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lgasper@cdcsoftware.com

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Monish Bahl
CDC Corporation
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