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Electronics Manufacturing Service Provider InnerStep Selects eMPower Solutions from Tecnomatix

Jun 19, 2003

NASHUA, NH � June 18, 2003 � Tecnomatix Technologies Ltd. (NASDAQ: TCNO), the driving force in Manufacturing Process Management (MPM), today announced that electronics manufacturing service (EMS) provider InnerStep selected the company�s eMPower� for Electronics solutions to implement a multi-site new product introduction (NPI) initiative aimed at achieving rapid, flexible new product launches and driving Six Sigma quality improvements throughout its operations.

InnerStep purchased licenses for eMPower Execution Systems and eMPower PCB Assembly & Test in March. InnerStep�s NPI initiative will use eMPower to help speed product launches and standardize the transfer of processes across its assembly operations, maximizing engineering investment in process design and helping to spread best practices across all of its production facilities. Automated data collection with alerts and remote notification provides InnerStep the ability to be proactive with corrective actions, which supports their Six Sigma initiatives and at the same time allows the company to provide real-time reports internally and to its customers.

�InnerStep�s balanced, flexible manufacturing approach requires a strong infrastructure,� said Jim Kingman, chief executive officer at InnerStep. �We need to be able to support everything from simple batch manufacturing to aggressive just-in-time programs. As our MPM system of choice, eMPower for Electronics gives us the flexibility we need to satisfy all of our customers. It provides consistent process instruction development and quality tracking across all our plants, while providing online work-in-progress reports and quality tracking for our customers.�

�A core element of the performance management trend shaping manufacturing is tying real-time performance data to process planning on an enterprise level, as enabled uniquely by eMPower,� said Israel Levy, chief executive officer, Tecnomatix Unicam, a wholly owned subsidiary of Tecnomatix Technologies Ltd. �With a comprehensive set of solutions connecting �as-planned� to �as-executed�, two major benefits are immediately available: valuable information becomes available to manufacturers which supports their ability to make the critical business decisions that control manufacturing performance today; and manufacturers can more rapidly integrate new sites onto their MPM system in the future.�

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.

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. 29tvanhoosear@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. 29

tvanhoosear@topazpartners.com

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