PeopleSoft First To Deliver Demand-Driven Manufacturing Solution

At its 2004 Leadership Summit, PeopleSoft (Nasdaq:PSFT) introduced the industry's first solution to address the next era of manufacturing - Demand-Driven Manufacturing. PeopleSoft is the only enterprise application company to deliver a complete Demand-Driven Manufacturing solution - from customer demand to supply chain planning to manufacturing planning and production to in-bound supply - all operating in real-time. Building on PeopleSoft's industry-leading manufacturing applications, the company announced new products to address the specific needs of Demand-Driven manufacturers. The new Demand-Driven Manufacturing products include Lean Procurement, Buyer Workspace, Radio Frequency Identification (RFID), Demand Scheduling Execution, configured Order Promising, and Advanced Forecast Modeling. PeopleSoft is also introducing the next generation of Lean Manufacturing - Demand Flow Line Design based on patented intellectual property licensed to PeopleSoft.

"Moving to a Demand-Driven Manufacturing environment is not merely a good idea in developing a progressive business strategy, it's a requirement for companies looking to gain and sustain a competitive advantage in the volatile landscape of today's manufacturing environment," said Arnie Kennedy, president and CEO, APICS.

In the past, companies have had to choose between being customer focused or operationally efficient. Demand-Driven Manufacturing is the ability to deliver any product, in any configuration, at any quantity to meet customer demand at significantly lower costs to the manufacturer, while driving the highest levels of profitability.

PeopleSoft Executive Vice President of Products and Technology Ram Gupta stated, "Demand-Driven Manufacturing is no longer a concept or limited to only a few companies, it is now the new reality for all manufacturers. We've combined the best of J.D. Edwards and the best of PeopleSoft and aggressively developed breakthrough new functionality at a time when manufacturers needed it most. This new solution gives PeopleSoft an 18-24 month lead over the competition."

The new solution builds on PeopleSoft's existing industry-leading Manufacturing solution. The new products introduced today include:

• Lean Procurement: Includes Buyer Workspace, Supplier Self-Service and Supplier Release Scheduling. These new modules embed Demand Flow methodologies exclusively licensed from JCIT in Q4 2003. The solution enables suppliers to connect with the Demand-Driven enterprise in real time.
• Buyer Workspace: A critical component of lean procurement that delivers a single interface for buyers to manage all aspects of their supplier relationships. This capability also includes proactive alerts to manage volatile commodity markets.
• Radio Frequency Identification (RFID): Enables companies to increase supply chain visibility and better respond to market volatility by providing the status and location of products and materials across the supply chain. Demand Scheduling Execution: Provides demand and supply visibility across the supply chain in high-volume and repetitive manufacturing environments. Includes functionality to track and audit cumulative demand against contracts.
• Configured Order Promising: The capable-to-promise solution now supports instantaneous promise calculations for configured orders. This solution enables Demand-Driven Manufacturers to provide superior customer service while understanding the profitability of their promise decisions.
• Advanced Forecast Modeling: Enables the development of statistically-based forecasts that account for complex market nuances such as consumer price index, weather predictions, and localized inflation rates.

Industry analysts have recognized PeopleSoft's advances in Demand-Driven Manufacturing. In a March 2004 research alert, AMR Research wrote, "PeopleSoft is concentrating on two of the hottest topics for manufacturing executives - Demand-Driven Manufacturing and lean manufacturing." According to Jim Shepherd, vice president, and Jill Gazzi, research director, "These represent real innovation in ERP design and support two of the most innovative new management techniques in manufacturing."

"Accelerated order lead times and meeting each customer's unique demands means our people, processes, and systems have to be highly responsive," said Ken Meidell, CIO, Cascade Designs. "By enabling us to manufacture the right products at the right time, PeopleSoft's manufacturing applications have increased our order fill rate by 20 percent while also increasing inventory turns."

PeopleSoft's solutions for Demand-Driven Manufacturing will be generally available in June 2004. Building on the release of Lean Procurement with embedded Demand Flow methodologies, PeopleSoft will deliver Demand Flow Manufacturing in Q4 2004.

About PeopleSoft Manufacturing
With more than 5,700 manufacturing customers, PeopleSoft Manufacturing is a suite of applications that enables manufacturers and distributors to respond to demand, adapt to dynamic market conditions, and connect with suppliers in real-time. PeopleSoft Manufacturing includes Supply Chain Planning, Supply Management, Strategic Sourcing, Manufacturing, Logistics & Order Management, Financial Management, Workforce Management, Sales & Service Management, Asset Management, and AppConnect. PeopleSoft Manufacturing is ideal for organizations and in the Consumer, Industrial Manufacturing, Automotive, High Tech, Life Sciences and Asset-Intensive industries.

About PeopleSoft
PeopleSoft (Nasdaq:PSFT) is the world's second largest provider of enterprise application software with 12,200 customers in more than 25 industries and 150 countries. For more information, visit us at www.peoplesoft.com.