Schneider Electric cites Scala as the most cost effective ERP system for global rollout; Electrical industry leading company is rolling out Scala across international subsidiaries in 15 countries.

M2 PRESSWIRE-22 January 2002-SCALA: Schneider Electric cites Scala as the most cost effective ERP system for global rollout; Electrical industry leading company is rolling out Scala across international subsidiaries in 15 countries (C)1994-2002 M2 COMMUNICATIONS LTD

RDATE:22012002

Schneider Electric, top-ranking provider of solutions for electrical distribution, industrial control and automation, chose Scala for their International Division subsidiaries across fifteen countries due to its excellent functionality and low total cost of ownership.

Due to various acquisitions during 2001, Schneider ended up with five different ERP systems worldwide, and aimed to gain standardisation of processes across its operations. The company looked for a package with the ability to manage subsidiaries in a variety of countries, but also needed the assurance that the system could integrate with SAP at their head office and large subsidiaries.

"We use SAP in our larger subsidiaries, and we realised it was not the most cost effective solution to run across our small- and medium-size subsidiaries. We have found Scala to be an excellent alternative in terms of functionality, with the added benefit of low running costs," says Bernard Vuillod, Information Systems Manager, International Division of Schneider Electric. "We estimate that the running cost per user is three times less for Scala than for SAP."

Scala and Schneider are currently working together to build a prototype implementation template for the Scala ERP software, involving financials, logistics, manufacturing (MPC) and project management modules. "We think it is of the greatest importance to build all the core processes as a company-wide standard and then roll-out to other offices," continues Vuillod. "This is especially useful for the smaller offices who do not have system maintenance capabilities. Because their system will be exactly the same as any other, we can offer them central internal support." Further benefits highlighted by Schneider include Scala's multi-lingual capabilities, which enable them to view all data in the language of choice at the click of a mouse, and support for the differing fiscal processes in each country, ensuring that Schneider remains legally compliant wherever they use Scala.

"A clear part of our business strategy is targeting global companies with a two-tier IT structure and Schneider is an exact fit to this profile," says Andre Israel, Scala's Vice President Operations for Western Europe. "During the past year we have seen more and more global companies choosing to maintain one or two large ERP systems within the enterprise and dispensing with the mixture of other packages they have amassed over the years. Many companies now realise that they are not able to run effective enterprise application integration projects unless they have already standardised their ERP system on two levels, rolling out Scala as the standard across small- and medium-sized subsidiaries and using a tier-one system, such as SAP for example, in their larger subsidiaries and headquarters. We offer an extremely attractive package at a lower cost than most other vendors' systems, considering the amount of functionality we offer and the global support available. It is good to have a leading company like Schneider confirm this."

Vuillod concludes, "One of our main reasons for choosing Scala was definitely the low cost of buying and running it. We have since found the consulting and implementation period to be relatively simple, while building common processes across our company with Scala has given us a much greater understanding of our own internal management."

Notes to Editors

About Schneider Electric Through its brands, Schneider ranks first worldwide in final distribution products, industrial control and automation components, and busbar trunking; and is among the top three in power distribution and medium voltage switchgear.

Schneider's expertise is founded on the skills of its four international brands - Merlin Gerin, Telemecanique, Square D and MODICON and has accumulated over 100 years experience in the electrical industry.

Schneider Electric operates on a truly global scale. With over 5000 sales outlets, 800 industrial and commercial units in over 130 countries and over 63,000 employees, Schneider Electric is always close to its customers.

Visit www.schneider-electric.com for more information.

About Scala Business Solutions

Scala Business Solutions creates collaborative ERP software - integrating Internet technology and traditional ERP functionality - to make global business simple. With Scala, global companies can fully integrate all their ERP systems anywhere in the world, whether in a subsidiary, division or headquarters, and extending to their partners and suppliers. Scala's collaborative ERP software makes it possible for global companies to meet the requirements for advanced e-business as well as use a standard ERP product for managing traditional business processes. This enables them to gain measurable benefits from trading electronically, building a private exchange or global portal, or optimising the supply chain.

From offices in Europe, North America and the Far East, and through its network of partners and dealers, Scala delivers software and services that are available in over 30 languages in more than 100 countries.

Scala is listed on the Euronext Amsterdam Stock Exchange (symbol: SCALA).

2000 revenue was USD 71.2 million.

Visit Scala's website at www.scala.net for press information including press releases, information for investors, and company and product information.

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