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TWST: Can we begin with an introduction to Tecnomatix (NasdaqNM:TCNO)? Perhaps you could provide a brief historical background to the company and then bring us up-to-date with exactly who and where you are today?

Mr. Beit-On: Tecnomatix is the world-leading supplier of Manufacturing Process Management. Tecnomatix provides software solutions and services to companies in the electronics, automotive, aerospace and other discrete industries. Our MPM solutions provide a collaborative environment where manufacturing companies can plan, engineer, and manage their manufacturing information in the process of bringing new products to the market. Everybody is familiar with CAD (Computer Aided Design) - which addresses the design of products. Then there is the process of defining how that product is going to be manufactured. And then you actually execute production in the factory. We are that middle space, called MPM, that carries significant benefits in terms of accelerating time to market, accelerating ramp up of production, minimizing costs and improving quality. We have been doing this since the mid 1980s and today have over 2000 customers. Half of our business is generated in the automotive industry; a quarter in the electronic industry; and the rest in the aerospace and other discrete manufacturing industries. We are considered the market leader by any measure, whether in size, number of clients, or number of licenses of our software that is installed. Our key customers include companies like BMW, Ford, General Motors, Renault, Volkswagen in the automotive industry; Airbus, Boeing and others in the aerospace industry; and of course, we have a long list of customers in the electronics space including Ericsson, Motorola, Siemens and many of the contract manufacturers such as Selectron, Sanmina-SCI and others. The company has annual revenues of about $85 million and we have had a long history of growth and profitability. We went through a transition period over the last two years and returned to profitability two quarters ago. Looking ahead, we believe that MPM will continue to be our main growth driver and will result in increasing profitability over the coming quarters.

TWST: You recently signed an agreement with EDS who, I believe, up until then was one of your key competitors. Can you provide some details on that agreement, what impact it has for Tecnomatix and then in a broader sense how that reshapes the competitive environment?

Mr. Beit-On: As in many other technology spaces, we have seen a considerable consolidation over the last few years. We have seen four major competitors emerge as players in the product lifecycle management (PLM) domain. Product lifecycle management relates to the management of product information from the creation of the product all the way through manufacturing planning, manufacturing execution, service, and until the retirement of a product. So this is a very broad space in which today four companies are playing. EDS is considered the market leader in that space. Within any PLM strategy, an MPM (Manufacturing Process Management) strategy is essential. I think EDS came to recognize that and commenced development in that area. At a certain point, they understood that the uniqueness and capability of our solutions would better suit them, and they decided to enter into this cooperation with us. The nature of the cooperation is that our MPM solutions will be tightly integrated into the overall PLM offering of EDS. As such they will offer smooth, continuous and tightly integrated solutions from product creation, through process creation and execution and as such deliver the time to market value, time to volume value that our joint customers are looking for. We have a strategy in Tecnomatix, being the independent leader of the MPM space, to partner with as many of those key players as we can. Last year, we partnered with SAP and now compliment that with the relationship with EDS. We would very much like to build a relationship also with PTC and with that basically maintain a competitive posture only with one company, that being the combination of IBM and Dassault, and solidify our strategic position, accelerate our market penetration, and hopefully drive very good growth of Tecnomatix.