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Alcatel Creates North American Virtual Manufacturing Enterprise Using Tecnomatix eMPower

Jun 06, 2003

NASHUA, NH � June 5, 2003 � Tecnomatix Technologies Ltd. (NASDAQ: TCNO), the driving force in Manufacturing Process Management (MPM), today announced that telecommunications solutions provider Alcatel has standardized on eMPower� PCB Assembly and Test solutions from Tecnomatix Unicam for creating production outputs in its North American operations. Tecnomatix Unicam, Inc. is a wholly owned subsidiary of Tecnomatix Technologies Ltd.

The move will allow Alcatel to operate as one virtual manufacturing enterprise across all of its North American locations. To accomplish this, Alcatel has purchased licenses for a number of eMPower products, including eM-Assembly Expert, eM-Test Expert, eM-View Expert and eM-Document Expert.

Alcatel creates manufacturing job information from a central location and is able to distribute this information to all of its own North American facilities. Key to the virtual enterprise, Alcatel encourages its contract manufacturers in North America to use the eMPower-neutral data to create their own manufacturing programs and documentation.

Once a product is designed, Alcatel is able to introduce its design and bill of materials (BOM) information into the eMPower products for PCB assembly, test and documentation and create the eMPower data files throughout its North American operations. These eMPower files are then stored in a central server and data is distributed throughout Alcatel�s North American enterprise. Alcatel uses the data to create programs for multi-vendor assembly equipment, shop-floor documentation and fixture design and outputs for all of multi-vendor automated test equipment,which is then distributed digitially to the manufacturing floor in its North American operations.

�Since our contract manufacturers also use the Tecnomatix eMPower solutions we are able to provide them with eMPower neutral outputs so that they can more quickly accomplish their own programming needs. Using eMPower, Alcatel has reduced the time needed to transfer information to our North American contract manufacturers from two days to one, and the increased visibility to their processes has improved our quality significantly,� said Kazem Sahebi, North America Process Development Team Leader, Alcatel. �This has become Alcatel�s preferred method for data collaboration with our suppliers and helps to give us more predictable quality and higher confidence in them. We are now able to utilize eMPower to ensure that the data we provide to our contract manufacturers is ready for use on their manufacturing floor. This has eliminated countless back-and-forth communications that used to take place.�

�Alcatel has succeeded in using the right mix of operational discipline with best-in-class MPM solutions from Tecnomatix for North American PCB manufacturing to truly create a faster, more responsive NPI launch process � which is necessary in today�s flexible, dynamic manufacturing environment,� said Israel Levy, CEO of Tecnomatix Unicam. �eMPower products help companies like Alcatel achieve �first-time right� improvements, by doing away with the need for several iterations of exchanging design data with manufacturers.�

About Tecnomatix Technologies Ltd.

Tecnomatix Technologies, Ltd. (NASDAQ: TCNO) is the driving force in Manufacturing Process Management (MPM). Today's leading global manufacturers are adopting MPM solutions to expand revenue potential and reduce costs by enhancing manufacturing's ability to support the business strategy of choice. These companies are using Tecnomatix eMPower� MPM solutions to accelerate product introductions, shorten time to volume, and optimize production execution. eMPower enables our customers to succeed with its collaborative, open platform and applications for defining, simulating, managing, and executing manufacturing processes across the extended enterprise.

For additional information about why automotive, electronics, aerospace and other discrete manufacturing leaders -- such as BMW, Ford, GM, Mazda, Comau, Faurecia, Sanmina-SCI, Solectron, Nortel, Philips, Boeing, Airbus, GE Aircraft Engines, Lockheed Martin - have been turning to Tecnomatix MPM solutions, visit http://www.tecnomatix.com.

About Alcatel

Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications network equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of EURO 16.5 billion in 2002, Alcatel operates in more than 130 countries.

Certain statements made herein that use the words �estimate�, �project�, �intend�, �expect�, �believe� and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company to be materially different from those which may be expressed or implied by such statements, including, among others, changes in general economic, political and business conditions and specifically, changes in the level of activity in the manufacturing industry, decline in demand to the Company�s products, inability to timely develop and introduce new technologies, products and applications and loss of market share and pressure on prices resulting from competition. For additional information regarding these and other risks and uncertainties associated with the Company�s business, reference is made to the Company�s reports filed from time to time with the Securities and Exchange Commission.

Note: All brand, product and company names are trademarks of their respective owners.

Todd Van Hoosear781-388-7900 ext. 209tvanhoosear@topazpartners.com

Company Contact:

Tecnomatix Technologies Ltd.

Bill Siegel

603-766-9638

bsiegel@tecnomatix.com

Investor Contact:

The Ruth Group

David Pasquale

646-536-7006

dpasquale@theruthgroup.com

Media Contact:

Topaz Partners

Todd Van Hoosear

781-388-7900 ext. 209

tvanhoosear@topazpartners.com

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