NEW ALLIANCE IMPROVES RETURNS ON SURPLUS ASSETS, PREVENTS INFLATED INVENTORIES FOR MANUFACTURERS

London, ON, CANADA and Boston, MA – March 10, 2006 –  Xtivity Inc., pioneer of a science-based optimization service for MRO (maintenance, repair and operations) inventories announces an alliance with EquipNet Inc., surplus asset management specialists and the largest online broker of pre-owned manufacturing equipment.

The two companies offer complementary services in asset and inventory management.  John Cowan, Xtivity President, explains.  “EquipNet helps companies maximize returns on assets they no longer need,” he says.  “Whereas Xtivity’s service helps companies optimize inventory purchasing, so they never again purchase inventory items that will become surplus in the future”. 

EquipNet helps manufacturers identify surplus assets, making them available for redeployment to other facilities within the corporation and external sale to other manufacturers around the globe. Roger Gallo, EquipNet, Inc. President and CEO, says, “Once a company can no longer return an asset to the original manufacturer, EquipNet is their best option for maximizing return” EquipNet collects a service fee only when the asset has been sold.

Xtivity’s Inventory Optimizer (xIO™) is a web-based service that examines a company’s transactional inventory data and calculates the appropriate Order Point and Order Quantity for every line item in an MRO inventory, using a scientific approach and methodology.  This maximizes fill rates, reduces total inventory cost, and prevents the ongoing purchase of items that will become dead in the future.

According to Gallo, manufacturers find both companies’ services enticing as proven cost-saving mechanisms.  “Both services offer significant savings, but at different times in the asset lifecycle,” says Gallo.  “Quite simply, EquipNet solves surplus asset headaches; Xtivity helps prevent them from happening again,” he says.

Cowan says customer interest drove Xtivity’s decision to partner with a surplus asset specialist. “One of the first steps in our xIO service is to identify all MRO inventory items that are dead, or will soon become dead.  Now we can introduce EquipNet Inc. as the optimal way to maximize returns on these surplus items.”

About EquipNet
EquipNet provides software and business services that identify, redeploy and sell production machinery, telecom, IT and lab equipment and general facility assets.  The EquipNet MarketPlace (www.EquipNet.com) has the largest online inventory of surplus manufacturing assets in the pharmaceutical, chemical, and consumer products industries.

About Xtivity Inc.
Maintenance Inventory Optimization Services from Xtivity Inc. deliver hard cost savings in 90 days, while improving executive confidence in Operations decision-making. Xtivity's executive team includes experienced leaders in MRO, software development and best practice implementation. The Xtivity Inventory Optimizer (xIO™) is the only service on the market proven to optimize MRO inventories - while offering unparalleled efficiencies and controls in corporate governance at the Operations level. xIO delivers proven results in refining, mining, manufacturing, utilities, food, transportation and automotive industries. More information is found at www.xtivity.com.

EquipNet Contact:
Roger Gallo
President and CEO, EquipNet Inc.
781-821-3482
rgallo@equipnet.com

Xtivity Contact:
John Cowan
President, Xtivity Inc.
519-642-1881 ext 24
jcowan@xtivity.com

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