BluePhoenix Announces Strategic Offshore Service Offering for Post Modernization Application Development and Enhancement


Proven Methodology with Commitment to Cost Savings, Quality and Timelines

Outsourced Development Enhances Migration Projects for Added Functionality

Large Pool of High Quality Software Engineers in St. Petersburg, Russia

HERZLIYA, Israel, October 16/ / -- BluePhoenix Solutions (NASDAQ: BPHX), the leader in value-driven legacy
modernization, today announced a strategic service for post modernization offshore application development and enhancement. The development projects are supported by a large pool of high quality software engineers in St.
Petersburg, Russia.

BluePhoenix provides application development, modernization, and transformation outsourcing, including offshore software design, development, custom programming, consulting, and software testing services. The offshore centre of excellence enables high quality design, rapid implementation, QA and testing with the most cost-efficient and timely delivery to our customers.

According to a recent report by the Gartner Group, "Russia's elite universities have extremely high standards in math and science. Consequently, the labour pool is of high quality and is scalable."

"BluePhoenix provides organizations with an extended development arm of experienced professional developers," said Arik Kilman, CEO of BluePhoenix.
"Our customers receive resources that are 100% dedicated to the quality, timeline and overall success of their development effort at a substantially reduced cost."

BluePhoenix offers strategic application development and modernization outsourcing on the midrange and mainframe platforms with support for development languages such as C#, C/C++, Visual Basic, Java, COBOL, PL/I, Ada, Assembler, Natural, Perl, AJAX, XML, HTML and PHP.

Our outsourced services provide the following benefits:

o Dedicated resources provided per customer requirements

o Flexibility to add developers or development time as needed

o Risk mitigation in hiring and building a development team

o Reduced management bandwidth required to get teams up and running

o Access to a wide range of skills and technology expertise

o Continuity of business and process knowledge around applications and users

For further information regarding our outsourcing services please visit www.bphx.com or contact us at advisors@bphx.com.

About BluePhoenix Solutions

BluePhoenix Solutions (NASDAQ: BPHX) is a leading provider of value-driven modernization solutions for legacy information systems.
BluePhoenix offerings include a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, rehosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.

BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, Citigroup, DaimlerChrysler, Danish Commerce and Companies Agency, Lawson Products, Los Angeles County Employees Retirement Association, Merrill Lynch, Rabobank, Rural Servicios Informaticos, SDC Udvikling, and TEMENOS. BluePhoenix has 15 offices in the USA, UK, Denmark, Germany, Italy, France, The Netherlands, Romania, Russia, Cyprus, South Korea, Australia, and Israel.

Source: BluePhoenix Solutions Ltd.

Company Contact, Colleen Pence, BluePhoenix Solutions, +1-210-408-0212 ext.600, cpence@bphx.com

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