NORTEK DEPLOYS PELION SYSTEMS’ MANUFACTURING PROCESS OPTIMIZATION (MPO) SUITE TO POWER AND SUSTAIN ITS DEMAND-DRIVEN INITIATIVES ACROSS THE ENTERPRISE

Initial successes from Pelion MPO implementation at Nordyne facilities lead to additional enterprise deployments

LAFAYETTE, COLO. – March 15, 2005 – Pelion Systems, the market leader in Manufacturing Process Optimization (MPO) solutions, announced today that it has signed an enterprise-wide license agreement with Nortek, Inc. to extend its use of the Pelion MPO Suite to support and enhance flow manufacturing practices across Nortek’s subsidiaries and supplier base. Following successful implementation at Nordyne, a subsidiary of Nortek, as well as an extensive evaluation of the demand-driven manufacturing software market, Nortek’s executive team selected Pelion MPO as the preferred software for its demand-based flow manufacturing management initiatives. Nortek is a leading international manufacturer and distributor of high-quality, competitively priced building, remodeling and indoor environmental control products for the residential and commercial markets.

“We recognize the benefit of offering software to our subsidiaries, suppliers and other affiliates to assist in optimizing Nortek’s entire manufacturing value chain,” said James Zingg, Director, Strategic Systems at Nortek. “Only a select few companies are able to successfully implement and manage demand-based flow initiatives throughout their operations. As lines become more complicated and numerous, it is essential we sustain flow processes and maintain our competitive advantage by using high performance software. Pelion Systems has built an adaptive solution that continues to meet our needs at the unique operating environments across our organization. More importantly, it delivers immediate results and savings that our teams are excited about.”

Offered through an enterprise suite of integrated software components, Pelion MPO is powered by advanced lean and flow algorithms supplemented with “drag-and-drop” visual modeling to help manufacturers quickly analyze, optimize and design shop floor configurations and operations processes. By modeling the unique manufacturing and shop floor processes of each facility, Pelion MPO implements rapidly without operational disruption or costly software modification. It provides a standard methodology and technology supported by ongoing mathematical calculations and operating data to help clients quickly respond to changes in mix or volume while balancing line and load requirements. Pelion MPO integrates all of the data management tools needed to visualize and immediately analyze and respond to changes in production scheduling, supply chain and distribution requirements based on real-time demand.

“We are pleased that Pelion MPO has been selected as an enterprise solution by Nortek,” said Dave Alcala, president and CEO for Pelion. “This agreement, and our continued success with implementations at several Nortek subsidiaries, confirms the competitive advantages afforded by Pelion MPO. We look forward to helping Nortek and its subsidiaries continue achieving and sustaining their demand-driven flow manufacturing goals.”

About Nortek, Inc.
Nortek (a wholly owned subsidiary of Nortek Holdings, which is a wholly owned subsidiary of NTK Holdings) is a leading international manufacturer and distributor of high-quality, competitively priced building, remodeling and indoor environmental control products for the residential and commercial markets. Nortek offers a broad array of products for improving the environments where people live and work. Its products include: range hoods and other spot ventilation products; heating and air conditioning systems; indoor air quality systems; and specialty electronic products. For more information, visit the company’s Web site at www.nortek-inc.com, or call (401) 751-1600.

About Pelion Systems
Pelion Systems provides lean operations management solutions for executives, plant and material managers, change agents and operators to power and sustain world-class business performance. Pelion integrates easily with existing systems and delivers rapid business value through exceptional operational and customer service performance. Teams using Pelion solutions make better and faster strategic, tactical, and operational decisions with a smart operations model that represents the value stream. Pelion Systems is headquartered in Boulder, Colorado, with sales offices in Detroit and Chicago. For more information about Pelion’s product and service offerings visit www.pelionsystems.com or call 877-669-4324.