Dec 24, 2003 
Valor Growth Strategy
The agreement with TraceXpert confirms the execution of Valor�s growth strategy, which is to achieve a dominant market position in the field of Product Lifecycle Management (PLM) at the manufacturing engineering level in the global electronics market. Ofer Shofman, CEO of Valor explained �our policy is to achieve high growth via internal investment in products but also through a proactive program of acquisitions. We focus on building a technology-base from which we can develop new-generation solutions with new levels of value and competitiveness to the market. We are sure that this is the optimum way to achieve a No.1 position in the vertical market of electronics manufacturing, which demands highly specialized domain knowledge and experience. The manufacturing-engineering segment of our business is already the highest-growth area of Valor�s operation, due to the successfully completed acquisition of our leading MPS technology. Building on that, it is known that the increased business potential from the real-time manufacturing control solutions-market is many times larger in addition, with existing independent vendors making only a small proportional penetration of the total market so far. Therefore we are confident that the combination of the TraceXpert technology and Valor�s powerful global sales channels will bring a substantial acceleration in the growth of Valor top- and bottom-line performance, and shareholder-value.�
Exact Traceability
TraceXpert, with hundreds of licenses already installed worldwide, is regarded as the leader in delivering exact traceability solutions which track surface-mount PCB assembly operations down to the single-component level. Major electronics manufacturing companies have implemented the TraceXpert technology during recent years because it provides a standard enterprise-wide solution that can be applied to assembly lines supplied by multiple machine-vendors. The strength of the TraceXpert technology lies in its wide variety of robust and error-proof real-time assembly line machine-interfaces, developed using highly specialized domain-knowledge. These interfaces meet the traceability requirements of the most demanding segments of the electronics markets which today include the medical, military and automotive segments and which are rapidly broadening into additional high-volume segments such as telecoms and networking.
Joint Venture
Valor intends to boost further development of the TraceXpert solution, covering a wider range of machine types and establishing best-practice integration with Valor�s market-leading Trilogy-5000 process-preparation engineering solution. Existing TraceXpert solutions will continue to be fully supported, with accelerated product development proceeding on an evolutionary basis. All TraceXpert expertise and intellectual property will be transferred for the exclusive use of joint venture, which will operate as a profit-center with an autonomous board of directors. Kurt Byskov, General Manager and Chief Technology Officer of TraceXpert commented �I am delighted to be making a growth-partnership with Valor on the basis of solid technological foundations. There is a very strong synergy between our solutions with an overwhelming 1+1 =3 effect in the joint venture. We are really looking forward to the opportunity to build a completely new level of value-proposition for the market.� The joint venture intends to make global sales via existing established distributors and Valor sales channels. Valor will hold a first-refusal option to purchase full ownership of the joint venture after 3 years.
Ofer Shofman, CEO of Valor commented �TraceXpert is an ideal partner for Valor and I am excited to be making this agreement because of the opportunities that it brings to all parties; their technology delivers the solutions that the market demands, without compromise. We are confident that the combination of Valor�s CAD/CAM and MPS solutions and TraceXpert�s real-time factory-floor technologies constitute the basis for a new level of performance at the manufacturing-engineering level of Product Lifecycle Management (PLM). Exact traceability is rapidly emerging as a mainstream demand of the volume manufacturing industry, and will be a key element in Manufacturing Execution Systems investments in the future.�
Henning Maerkedahl, Co-General Manager of TraceXpert said �TraceXpert�s success so far has been driven by its technology, and the same is true of Valor. Yet our technologies are completely complementary, with no overlap, and if you add Valor�s excellent worldwide sales and support organization to the formula, I foresee excellent growth opportunities ahead. In addition, our existing customers can look forward to deriving more value in the future from their existing installations.�
About Valor
Valor Computerized Systems [FSE: VCR, VACS] is the leader in vertically integrated, productivity enhancing engineering software solutions to the electronics design and manufacturing industry. Valor is a publicly listed on the Frankfurt Stock Exchange. The company's powerful software tools, based on ODB++, the Valor-funded data format that has quickly become the format of choice for high-level data exchange, ensure the rapid transfer of optimized data from the design through manufacturing stages. Enterprise 3000 DFM system for physical design verification, Trilogy 5000 for assembly and test engineering, and the unique Valor Parts Library 24/7 on-line data service are utilized by designers and engineers to deliver enhanced productivity, higher yields, shorter cycle times and increased product quality. All Valor products are sold and supported by a worldwide network that includes global subsidiary offices, VARs and OEM channels. More information about the company can be found at http://www.valor.com/
About TraceXpert
TraceXpert is a privately owned company based in Aarhus, Denmark. Established in 2001 by a group of developers and marketing experts with over 50 man-years of experience in the niche-market of automated electronics assembly, TraceXpert specializes in the development and marketing of real-time SCADA (Supervisory Control and Data Acquisition) solutions for the global electronics manufacturing industry, which form an essential part of a complete MES (Manufacturing Execution System) implementation. The company�s products are installed at customer-sites worldwide, contributing to productivity enhancement and delivering full materials traceability solution. Sales for 2003, via existing TraceXpert distribution channels, are expected to be in the region of $1.4Million. More information about the company can be found at http:/www.tracexpert.com
Reader Contact Information:
Valor Corporate
Alon Levitan
Valor Computerized Systems, Ltd., alonl@valor.com, Tel: +972-8 -943-2430 ext. 159, http://www.valor.com/
North America
Valor Computerized Systems, Inc., 25341 Commercentre Drive, Suite 200, Lake Forest, CA 92630, Tel: (+1) 949-586-5969, Fax: (+1) 949-586-1343
Europe
Valor Computerized Systems NV, Park Hill - building D, E. Mommaertslaan 22, 1831 Diegem (Machelen), Belgium, Tel +(32) 2 401 85 00, Fax +(32) 2 401 85 99
Germany
S�nke Knop, Axel M�hlhaus, edicto GmbH, Tel.: +49(0)6084-94859-1, sknop@edicto.de, http://www.edicto.de
