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Press Release

FOR IMMEDIATE RELEASE

For more information contact:
Press Relations
Baxter Planning Systems, Inc.
PR@bybaxter.com
(512) 323-5959 ext. 123

Baxter Planning Systems Optimizes Service Parts Supply Chain for Network Appliance

AUSTIN, TX - (June 1, 2001) - When Network Appliance selected Baxter Planning Systems in October of 1999 for service parts planning and to maximize strategic locations and depots in the United States and Canada, they were ecstatic by the increase of service levels to over 99%. By optimizing inventory stocking levels, Baxter helped to achieve these high service levels with less than one-half of the inventory previously held.

When Network Appliance decided to launch depot planning worldwide in April 2001, there was no question they would once again turn to Prophet by Baxter as their software solution.

Originated in 1992, Network Appliance provides data at high-performance speeds. The company is a recognized leader in storage, management, and delivery of mission-critical data and content on demand for corporations including Lycos, Yahoo!, Motorola, and Texas Instruments.

"Distribution Planning for Prophet has helped Network Appliance achieve the critical correspondence necessary between depot locations and service coverage so we can meet, and in many cases, exceed service levels. The Distribution Planning module revolutionized the way we previously managed supply chain planning and positioned us as proactive rather than reactive. Our commitment to 2-4 hour responsiveness is fulfilled due to Prophet's ability to identify a shift in an install base or a depot location that is no longer necessary," said Alex Ricafrente, Senior Logistics Planner. "There is no other tool on the market that has that key differentiator. The Baxter team is excellent. The developers are always responsive and coming to us with smart suggestions. It was a natural progression to leverage our existing Baxter processes for the worldwide roll out of our global supply chain planning," said Jack LaSalle, Business Systems Analyst.

Baxter is currently planning optimal stocking levels at all warehouse and depot locations worldwide, including the locations provided and managed by UPS Service Parts Logistics group. Baxter serves as an Application Service Provider to Network Appliance by hosting the Prophet by Baxter software, which Network Appliance accesses via the web. In addition to providing the software, Baxter performs the planning activities associated with same day locations and service commitments. As a core competency, Baxter provides the planning services out of its Outsourced Planning Consulting group.

About Baxter Planning Systems, Inc.
Baxter, an eight-year old company with headquarters in Austin, Texas, uses their proprietary supply chain software to help enterprises plan the flow and storage of service parts inventory, saving clients up to 70 percent on inventory investment and achieving over 99 percent customer service levels. In addition to software, Baxter can host the software as an Application Service Provider, as well as provide outsourced planning services to augment an existing staff or provide complete outsourced planning support. Baxter delivers its solutions to its targeted vertical markets in high-tech, aerospace, telecommunications, office equipment, medical equipment and automotive. Baxter clients include Hewlett Packard, Sony Electronics, Philips Medical, Agilent Technologies, UPS, Enterasys, and Lucent Technologies.

Prophet by Baxter software suite optimizes the entire service supply chain and ensures service contract compliance. For more information on Baxter Planning Systems visit www.bybaxter.com.