SINGAPORE - 17 July 2006 - Microsoft Singapore today announced that Intermech Machinery Pte Ltd, a Singapore-based industrial automation components distributor and sub-system manufacturer, has selected Microsoft Dynamics AX, Microsoft's multi-language, multi-currency supply chain management (SCM) solution its new manufacturing plant in Tuas.

The new plant houses Singapore's first RFID implementation for the automation industry, supporting one of the technology bets identified by the Infocomm Development Authority of Singapore as most likely to have a strategic impact on various sectors of the economy, government and society . Together with the Microsoft-enabled RFID solution, Microsoft Dynamics will automate inventory tracking at the new plant, reducing materials wastage by as much as 50 per cent and drive overall business productivity benefits up to 40 per cent. In the long term, the system will be the infrastructure for the expansion of Intermech's regional distribution business.

"The industrial automation industry has changed dramatically in the past ten years. Where customers were happy previously with an average order fulfillment period of one to two months, today, they are demanding a less than a week turnaround time to achieve their own just-in-time targets to reduce downtime," said KH Ong, Managing Director, Intermech Machinery.

"With the new system developed by Microsoft and Avanade, we now have better visibility into our inventory and processes that can match the fast-changing dynamics in our business landscape. This plays a central role in helping us improve our customer service delivery standards, and will have a direct impact on the company's expansion in Asia Pacific. In the short term, we expect the system to help us grow our business by 50 per cent in the next two years," added Ong.

With an annual group turnover of S$29 million, Intermech Machinery currently has eight offices in Asia, and plans to drive growth in the region by expanding its equipment distribution business. By embracing the Microsoft-enabled RFID solution, Intermech will be able to manage and track inventory both within and across its regional network, increasing employee productivity and customer responsiveness.

Intermech's new 52,000 square feet factory in Tuas is wirelessly enabled on an 802.11g network where all manufacturing components and inventory are RFID-tagged and loaded onto an RFID smart shelf. The smart shelf automatically detects the volume and age of the inventory items, and sends the data wirelessly to the Microsoft Dynamics solution, providing employees real-time insight into their inventory. This enforces strict adherence to Intermech's First-In-First-Out (FIFO) inventory system to reduce wastage from materials obsolescence.

With the solution, employees can now also track work in progress, reducing the time spent tracking job status from picking, packing and shipping. Another benefit of the solution is that Intermech will reduce the amount of resources needed to complete stock takes -- from 40 employees in a day, to just two employees in half-a-day - enhancing productivity and improving stock taking and inventory management by more than 90 per cent

"The decision to use Microsoft Dynamics AX was an easy one," said CE Tan, General Manager, Intermech Machinery. "On top of the productivity, efficiency gains and scalability, Microsoft Dynamics AX was easy to integrate with our current IT setup and complex RFID networks, which is built mostly on Microsoft technology. Because of the similar look and feel interface, our employees needed only minimal training to use the system effectively."

Tan added, "Most importantly, the Microsoft platform provides a common platform to collaborate with our partners and customers, making integration with their IT and RFID networks for future collaboration on end-to-end supply chain efficiencies a real possibility."

Avanade, a Microsoft Gold Certified Partner, global enterprise alliance partner and the integration partner for this project, brought the new system to life within six months.

"Having worked closely with Intermech Machinery to develop the RFID application, and having integrated it successfully with Microsoft Dynamics AX, we have developed a deeper understanding of Intermech's business processes and supply chain operations," said Sidney Lim, General Manager, Southeast Asia, Avanade Asia. "Our knowledge of Intermech's entire operations enables Avanade to serve as a strategic technology advisor, helping Intermech implement IT initiatives that successfully support their larger business goals."

"We are proud to partner with Intermech and Avanade to pioneer the first RFID implementation for the industrial automation industry in Singapore," said Jessie Quek, Director, Small and Medium Solutions & Partners, Microsoft Singapore. "At Microsoft, we believe that technology can unleash the full potential, in people and business. Providing people with right tools and software will fuel business productivity and enable confident decision making."

About Avanade
Avanade is the leading technology integrator specializing in the Microsoft enterprise platform. Our people help customers around the world maximize their IT investment and create comprehensive solutions that drive business results. Avanade Asia is a wholly-owned subsidiary of Avanade, Inc. based in Seattle, WA. Please visit www.avanade.com for additional information

About Intermech Machinery
Intermech Machinery Pte Ltd was established in 1990 as a value-add for manufacturing and distribution in the field of factory automation, servo and geared motors, speed controllers, CNC machines and Aluminum profile engineering solutions such as designs, fabrication and assembly of industrial automation sub-systems and equipments. Headquartered in Singapore, the company has a regional presence in Malaysia, Indonesia, Thailand and China. Intermech was awarded its ISO 9001:2000 and IQNet accreditation in 2002 and 2005 respectively.

About Microsoft
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Media Contacts

Microsoft Singapore Fatima Adam Communications Manager Tel: +65 6882 8992 Email: fatimaa@microsoft.com

Edelman (for Microsoft Singapore) Ho Sin Huay Tel: +65 6347 2329 Email: sinhuay.ho@microsoft.com