Fourth Shift Edition of SAP Business One ERP Solution to Launch in China


SoftBrands target SME growth opportunity with SAP-centric manufacturing solution

MINNEAPOLIS and XI'AN, China - April 12, 2006 - SoftBrands Inc. (AMEX: SBN), a global leader in next-generation enterprise software for manufacturers and a global ISV partner of SAP America, Inc., will launch its Fourth Shift Edition of SAP Business One manufacturing management solution in China this fall. SoftBrands President and CEO Randal Tofteland announced the upcoming launch today at SoftBrands' Fourth Shift XChange User Conference in Xi'an, China, an annual meeting of SoftBrands' Chinese customers.

Scheduled for availability in September 2006, the Chinese version of Fourth Shift Edition of SAP Business One will be fully translated and localized for the large and fast-growing China market. Fourth Shift Edition is SoftBrands' fully integrated ERP system designed specifically for small and midsize manufacturers, offering these companies a solution that combines the strength and security of SAP with the mid-market manufacturing expertise of SoftBrands.

"We know China, and China knows us. SoftBrands was one of the first global ERP suppliers in China, and we have a long history of growth and success there that dates back nearly 20 years," said Ralf Suerken, SoftBrands' senior vice president and general manager of manufacturing.

"With comprehensive local implementation and support services, and a true understanding of the needs of manufacturers in China, Fourth Shift Edition will be a leader in the Chinese market. Worldwide supply-chain integration and collaboration are top priorities, and Fourth Shift Edition of SAP Business One is a natural fit for these manufacturers, especially if their parent organizations or key customers are already running an SAP solution."

SoftBrands opened its first China office in 1989. The company now has more than 400 customers in China, and its products have been officially certified by the Chinese government since 1994. Emerson China Motor, Xuzhou Construction Machinery Group, Bosch, Duracell, Kolbenschmidt, Pentair and Toledo Scale are some of SoftBrands' many customers in China. SoftBrands is well known in North America, Europe and in China's many industrial zones for its ability to help multinational companies implement and integrate its ERP systems quickly and effectively.

"The implementation of Fourth Shift has enabled most of our operating companies to dramatically improve production, financial and inventory management," said Li Zhongli, MIS director at ASIMCO, one of the largest U.S. automotive components manufacturers in China. "Inventory turns have tripled, on-time shipment has increased to more than 90 percent, and inventory accuracy to 98 percent."

Fourth Shift Edition of SAP Business One is already available in the United States, Canada, the United Kingdom, Ireland, South Africa, Australia, New Zealand, Singapore and Malaysia.

"SoftBrands has an excellent reputation for helping Western companies grow and develop operations in China and throughout Asia. We are working to leverage SAP's strength and our own success in China to help small and midsize companies by providing a manageable, powerful SAP-centric solution that will grow with the customer's business," Suerken said. "The growth potential for us in the Chinese marketplace is huge. As this manufacturing market continues to develop as an exporter - and is called upon to meet growing domestic demand - SoftBrands and SAP will be perfectly positioned."

About SoftBrands

SoftBrands, Inc. is a global leader in providing solutions for small- to medium-sized businesses in the manufacturing and hospitality industries worldwide. With more than 4,000 customers in over 60 countries now actively using its manufacturing and hospitality products, SoftBrands has established a global infrastructure for distribution, development and support of enterprise software. The company, headquartered in Minneapolis, Minnesota, has more than 550 employees with branch offices in Europe, India, Asia, Australia and Africa. Additional information can be found at www.softbrands.com.

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