Scala Stakes Claim on Japanese Business Software Market Scala Business Solutions is the key vendor supplying fully-localised software operating on Microsoft platforms in Japan

SCALA IS STRONG IN JAPAN WITH FULLY LOCALISED SOFTWARE OFFERING

16 October 2001: After meeting with Scala customers, partners and Microsoft during a recent tour of the Asia Pacific region, Scala President, Mike Burdett, has been reassured that Scala offers the most functionality specific to the Japanese market while running on Microsoft platforms. With e-business growing fastest in Asia Pacific and Europe [IDC], Burdett sees an open market for Scala's collaborative ERP system.

Kozo Hizume, Senior Manager of Microsoft's Enterprise Solutions Group in Japan, says, In the mid market sector, Scala is the only product available on a Microsoft platform that can deal with such peculiarities as Shi-me invoicing for Japanese business. Scala and Microsoft have a unique business proposition to supply world class systems to a rapidly developing e-business economy, and our successful relationship ensures that we will work closely to ensure that we continue to deliver exactly what business demands."

Japan is the second-largest economy in the world, and according to Burdett, companies within the mid market sector are opening their doors to e-business at a rate of between 500 and 800 per month. These are exactly the type of customers that we target. They trade globally with customers, partners and suppliers, report internationally within their own hierarchy, are advanced in their approach to e-business, and are in need of a system that can deal with local legislative demands," says Burdett. The country's export trade amounts to $800 billion per annum. However, a staggering $56 billion is spent on paper-based administrative processes alone. It has been estimated that e-business could reduce this bill by two-thirds [Fujitsu].

In Japan there is a tendency to think that to achieve this level of collaborative ERP, businesses have to use UNIX or proprietary platforms, but Scala customers who want a consistent system running across global subsidiaries find that Microsoft platforms can be a more flexible, convenient and cost-effective option. Burdett continues, Other global software packages cannot deal with the basic double-byte character of the Japanese language as Scala can, let alone regulatory requirements such as shi-me invoicing. If I were a company operating in Japan, I would take this as an insult."

Shi-me invoicing concerns the periodical consolidation of invoices and requires promissory notes, as do the French- and Spanish-language markets, particularly in Latin America. This is just one of the many ways Scala has worked to localise its software in such markets, with a version specific for Japan commercially released in 1999. Scala was first installed in Japan as early as 1989.

We are strongly committed to continue supplying the Japanese market with fully-localised collaborative ERP solutions and to take advantage of the fact that we are the vendor that can do this on cost-effective Microsoft platforms. Coupled with the successes we have had in the whole Asia Pacific region such as again being ranked number one in the Chinese market according to IDC, Scala is well-placed to increase market share and move towards our goal of becoming the partner of choice for global enterprises for their subsidiaries, divisions and suppliers," says Burdett.

Scala was the world-wide winner of the ‘Best ERP Solution of the Year award for 2001 from Microsoft at the recent Fusion partner event in California, USA, and is a Microsoft Certified Partner.

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Notes to Editors

About Scala Business Solutions
Scala Business Solutions creates collaborative ERP software - integrating Internet technology and traditional ERP functionality - to make global business simple. With Scala, global companies can fully integrate all their ERP systems anywhere in the world, whether in a subsidiary, division or headquarters, and extending to their partners and suppliers. Scalas collaborative ERP software makes it possible for global companies to meet the requirements for advanced e-business as well as use a standard ERP product for managing traditional business processes. This enables them to gain measurable benefits from trading electronically, building a private exchange or global portal, or optimising the supply chain.

From offices in Europe, North America and the Far East, and through its network of partners and dealers, Scala delivers software and services that are available in over 30 languages in more than 100 countries.
Scala is listed on the Euronext Amsterdam Stock Exchange (symbol: SCALA). 2000 revenue was USD 71.2 million.

Visit Scalas website at www.scala.net <http://www.scala.net> for press information including press releases, information for investors, and company and product information.

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