Pelion Systems Bolsters Business With $5 Million Funding and New Management Appointments

LAFAYETTE, Colo

Pelion Systems, the leader in Manufacturing Process Optimization (MPO) software products and services based on Lean, Six Sigma and Demand Flow(TM) methodologies, today announced it has completed several major business initiatives that will help accelerate its growth and success, including a $5 million round of financing and the addition of industry veteran Dave Alcala as its new president, CEO and chairman. Pelion's existing senior management team, including Tom Plunkett, executive vice president, operations and Dave Gleditsch, chief technology officer, will continue as the company ramps-up its efforts in sales and marketing, R&D and business development.

Pelion secured its $5 million in capital from investment firms Inverness Capital Partners, L.P. and Cordova Ventures' Industrial Technology Ventures (ITV) Fund. The company also announced it elected Alcala, Skip Maner, managing principal of Inverness Capital Partners, Paul DiBella, managing director, Cordova Ventures ITV and Rob Geller, managing partner of RVI Partners, LLC, to its board of directors.

"Pelion Systems is a mature start-up with market-leading presence in the emerging Manufacturing Process Optimization market," said Alcala. "I am excited to join the Pelion team and to help build upon the success the company has achieved during the past five years. Our investors and new board of directors are providing us with the resources to serve our customers with unprecedented excellence and to build the company as an industry leader with enduring value."

Alcala is an industry veteran of 30 years, recognized for his successes in starting up new businesses through innovative product management, strong management teams, sales and marketing initiatives and strategic partnerships. Alcala has had repeated successes with ERP and supply chain management software product and services companies serving the world's largest manufacturers, retailers, distributors and third-party logistics providers. As senior vice president and chief operating officer, he was the principal architect in the formation of EXE Technologies, a premier global company in the Supply Chain Execution space, securing $20 million in funding from several notable venture capital firms and executing a successful NASDAQ IPO in 2000. In December 2003, SSA global acquired EXE.

Newly Elected Board Members
Skip Maner is a managing principal of Inverness Capital Partners. Prior to joining Inverness, Maner spent eight years in venture capital with TL Ventures, Internet Capital Group and Safeguard Scientifics. Prior to becoming a venture investor, he was an entrepreneur and served as president and founder of two companies, including a recycled products manufacturer. He has a B.A. in history from the University of Richmond and an M.B.A. from the Wharton School of Business.

Paul DiBella has been a partner with Cordova Ventures since 1992. DiBella is the managing director of Cordova's ITV Fund, which focuses on emerging technologies that have applications in basic industries. During his career at Cordova, he has been instrumental in the development and creation of several of Cordova's investment funds, and has been an active member of the investment committees on six of Cordova's seven funds. He has been involved in investment decisions for more than 60 companies, including RealCom Communications (sold to MFI-Worldcom), Horizon Medical (IPO), National Action Financial Services (sale), Accipeter (sale to CMGI), Lynk Systems (pending sale for $525 million) and Atherogenics (Nasdaq:AGIX) and Inhibitex (Nasdaq:INHX). DiBella is a 1986 cum laude (top 6% of his class) graduate of the University of Miami School of Law and has an undergraduate degree in finance from The University of the State of New York, Albany, New York.

Rob Geller has 26 years of experience specializing in executive services for emerging growth companies. He is currently managing partner of RVI Partners, LLC, a Colorado-based investing/consulting firm and sits on the board of five emerging technology firms. He co-founded WEBB Interactive, Inc., a Denver e-commerce and online Web-centric community developer that went public in 1995 (WEBB). Geller was also a co-founder of Requisite, Inc., a Boulder-based developer of requirements engineering software tools that was sold to Rational Software in 1996. Geller graduated Summa Cum Laude from the University of Colorado and has instructed in the CU-M.B.A. program. Geller has authored various articles on early stage company management and finance development.

"To achieve competitive leadership in today's global economy, manufacturers must adopt new operating strategies, such as Lean, Six Sigma and Flow," said Maner. "To sustain those initiatives, companies must implement technology to support them and provide sophisticated logic to optimize and extend their operations to liberate capital and grow profits. Having researched dozens of technology providers in this space, we believe that Pelion Systems is the only firm that can support the entire business transformation lifecycle and scale on a global basis.""With the addition of a proven industry leader, Dave Alcala, as CEO, Pelion has the capability to build and grow to world-class status in a short period of time," added Maner.

About Pelion Systems
Pelion Systems is the market leader in Manufacturing Process Optimization (MPO) software products and services based on Lean, Six Sigma, and Demand Flow(TM) principles. With Pelion, leading manufacturers are able to liberate capital, grow profits and sustain breakthrough performance by optimizing operations and extending their supply network to include suppliers, customers and outsourced service providers in their business transformation. Pelion MPO products integrate easily with existing ERP and MRP systems and are available in desktop, site and enterprise editions. Based in Lafayette, CO, Pelion Systems has sales and marketing offices in Chicago, Atlanta, Detroit and Austin. For more information about Pelion Systems product and service offerings visit www.pelionsystems.com or call 877-669-4324.

About Inverness Capital Partners, L.P.
Inverness Capital Partners L.P. is a $125 million private equity fund, with offices in Philadelphia and Boston, which provides growth and expansion capital to innovative, high-growth industrial companies. The fund invests in small to mid-size companies with proprietary manufacturing technologies and processes in the Industrial Equipment & Components, Advanced Materials & Processes, Robotics & Factory Automation, Manufacturing IT, and Advanced Packaging areas. Inverness is part of the Graham Group, a privately held concern founded in 1960, comprised of industrial and investment businesses with over $1 billion in net assets. For more information visit www.invernesscap.com.

About Cordova Ventures' Industrial Technology Ventures Fund
The Industrial Technology Ventures Fund is a $50 million Cordova Ventures affiliate fund focused on growth stage capital investments in companies with strong management teams and proprietary technology that creates significant bottom-line value within established industries. Cordova Ventures is a venture capital firm with over $300 million under management, founded in 1989 and headquartered in Atlanta, Georgia. For more information visit www.cordovaventures.com.