SOPHEON UNVEILS AUTOMATED PRODUCT BASED ON STAGE-GATE

Sopheon, an international leader in the development and implementation of knowledge management software and services, announced the introduction of an automated version of the Stage-Gate new-product development system currently used by an estimated 70 percent of North American technology-driven companies.

Sopheon unveiled the new system - which has the working name Accolade - at the 24th annual conference of the Product Development & Management Association (PDMA) Oct. 11-15 in New Orleans. The system was designed in conjunction with Drs. Robert Cooper and Scott Edgett, internationally recognized authorities on new product management whose work is the basis for the renowned Stage-Gate system of the Ontario-based Product Development Institute Inc (PDI).

"Accolade is the first major offering from an exciting new international alliance created by the recent merger of Sopheon and the former Teltech Resource Network Corporation, and our strategic partnership with PDI," said Andy Michuda, president and chief executive officer of Sopheon. "It exemplifies the strategic thrust of the Sopheon-Teltech merger, which created a company that delivers a unique integration of information process and content. We are pleased to unveil our new Accolade offering at the PDMA conference and give this highly targeted audience of product-development professionals an advance look at the new model for integrating the knowledge resources essential to successful implementation of the product-development process."

Sopheon also announced that Pennzoil-Quaker State Company has agreed, pending formal internal approval, to beta test and implement the new system. A number of corporate sites are expected to participate in the test activity preceding full commercial introduction of the offering. Sopheon said market release is targeted for early 2001.

Accolade converts the proven Stage-Gate system from paper to computer, and speeds the process through rapid transfer of critical knowledge. Its combination of software applications, expert services and specialized content provides a flexible framework for new-product development processes from inception to launch. The solution is preloaded with product development best-practices content created by Drs. Cooper and Edgett, and also gives users access to Sopheon's technical and industry experts and its award-winning portal, Teltech.com.

For companies without an established product development process, Accolade will offer an easily adoptable turnkey solution. For those that have a process, Sopheon's new system can help improve the path from concept to market.

Dr. Cooper, one of the world's preeminent experts on new-product development and co-founder of PDI, said the new system represents an important competitive aid at a time of intensifying global competition. "The accelerating pace of technological advance, the increasing volatility of customer and market needs, the growing competitive turbulence in most industries - all contribute to a pressure-packed environment for the development of new products. Accolade is designed to help companies navigate the complexities of the development process faster and more effectively."

The pressures of new-product development are illustrated by studies showing that only 60 percent of the new products launched in North America today are successful. Unsuccessful products and products that never make it to market absorb more than half the total resources companies spend on developing and launching new products. At the same time, the importance of new-product development is recognized across all industries. Senior executives at 90 percent of companies surveyed recently by Industry Week said that new-product development will be the key driving force of business success in the years ahead.

The Accolade system provides additional functionality in new-product development portfolio management, including monitoring, prioritization, resource allocation and "what if" analysis. It is augmented by an array of modules developed by Drs. Cooper and Edgett, including:

• An integrated portfolio management tool that enables more informed product investment decisions.
• New-product screening and diagnostic software that helps gauge the probability of commercial success.
• A process evaluation and benchmarking tool for assessing productdevelopment processes, practices and performance.
• An electronic manual providing guidelines for effective new-product development.

About Sopheon

Sopheon, which completed its merger with Minneapolis-based Teltech Resource Network Corporation on Sept. 18, is a leading international provider of information and knowledge solutions that enable companies to more efficiently access internal and external information and turn it into usable knowledge. Sopheon's experience in integrating information process and content is the foundation for a powerful combination of pre-loaded, industry-specific software applications, expert services and specialized content. Its comprehensive solutions can enhance business processes ranging from product development and customer relationship management to R&D and quality management. Sopheon has operating bases in the United Kingdom, Netherlands and the United States. Its customers are companies in the life sciences, high-tech and healthcare industry sectors, and include half the Fortune 500. Information on Sopheon's products is available on: www.sopheon.com.

About PDI

The Product Development Institute Inc, www.prod-dev.com, is dedicated to helping companies improve their approach to new product development and portfolio management. Led by internationally recognized experts in the field of product development, Drs. Robert Cooper and Scott Edgett, the Institute provides executives and managers with a wide range of products and services aimed at improving companies' new product success rates. Cooper and Edgett have worked with more than 800 businesses, including most Fortune 500 companies, and have compiled the largest database on product-development best practices in the world.

Contact Sopheon, Ron Helgeson, 952-851-7585, ron.helgeson@sopheon.com or Scott Edgett, Product Development Institute Inc, 905-648-0095, edgett@prod-dev.com.