PELION SYSTEMS APPOINTS KEVIN FALLON AS CEO

Fallon brings a 20-year track record in building technology companies as Pelion’s growth accelerates

Boulder, Colo. – March 2, 2006 – Pelion Systems, a market leader in supply chain optimization solutions, today announced that Kevin Fallon has been appointed president and CEO of the company. Fallon was selected by the board of directors to build upon the strong momentum Pelion realized in 2005 as the company expanded its technology capability and achieved triple digit sales growth. “Today, in addition to optimizing their own supply chains, our customers are utilizing our technology to collaborate across enterprise boundaries with their customers, suppliers and other trading partners for global supply chain synchronization,” said Fallon.

Fallon brings more than 20 years of engineering, marketing, operations and executive management experience to Pelion. His background includes positions with RCA and General Electric, founder of four technology ventures, and executive positions in private and public companies. Highlights include serving as president and CEO of All-Control Systems, where he built the company from start-up before it was acquired by Tava Technologies. Fallon was chief operating officer of Tava and president of two divisions, where he directed the integration of five merged entities that jumped revenue from $36 million to more than $100 million in 30 months. Tava subsequently was acquired by REAL Software for approximately $200 million. More recently, as president of Denver-based internet security firm MX Logic, Fallon led an increase in sales of more than 900 percent in one year.

“Pelion Systems is coming off a banner year in which it secured major new accounts, expanded its footprint with existing customers and strengthened its market position as a leader in the supply chain optimization market,” said Fallon. “We plan to build upon that success as manufacturers look to speed up their response to customer demand, lower inventories and improve quality.”

“Pelion is delivering proven Lean manufacturing and global supply chain solutions that are driving new levels of productivity, cost savings and coordination for both existing customers and a growing roster of new accounts,” said Skip Maner, managing principal of Inverness Capital Partners and Pelion director. “Kevin’s strong manufacturing knowledge and vision for Pelion will help it capitalize on its growing success and help secure Pelion’s market position as one of the leading global supply chain solution providers in the industry.”

Mr. Fallon holds a MBA from The Wharton School/University of Pennsylvania and Bachelor of Science in electrical engineering from Drexel University.

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.