Cimnet, Inc. is a developer and marketer of process improvement software solutions for the global manufacturing industry. The Company's software solutions manage the collaboration between process information on the shop floor and financial/logistical information in the office and supply chain. In addition, Cimnet's software solutions control a company's production process inputs and enables manufacturing flexibility. Factelligence is the Company's lead software solution and is used for both discrete and process manufacturing. Factelligence has been designed for the aerospace, automotive, assembly, metals manufacturing, pharmaceutical, medical devices, biotech, food and beverage and consumer packaged goods industries. Cimnet is also engaged in the resale of hardware that is incidental to the operation of its software products. The Company's products utilize Microsoft and Oracle database technology to electronically manage production schedules, process control, documents, product quality, machine efficiency, material yields and labor time and attendance. They enable drive manufacturing standards and enable production to eliminate variability in complex manufacturing operations. The Company's products operate on Windows 95, 98, 2000, XP and NT. Factelligence Industrial Portal (Factelligence IP), first introduced in November 2004, is a suite of completely integrated Manufacturing Execution, Business Intelligence and Human Machine Interface, Supervisory Control and Data Acquisition (HMI/SCADA) software built on Microsoft's .NET technology. Factelligence IP brings together, under a single brand, an interoperable set of tools capable of revolutionizing factory floor management, using the Microsoft technology. Factelligence IP uses a modular approach to package Cimnet's applications: Manufacturing Execution Systems (MES), HMI/SCADA and Business Intelligence. Factelligence IP is highly configurable enables companies' abilities to achieve rapid rollout and ROI in the make-to-order, lean, outsourced or collaborative manufacturing markets. It enables customers to build a real-time, Web centric information system that enables supply chain visibility. Using direct links into manufacturing equipment, it provides information on each step of the manufacturing process. This information allows customers to make decisions that help develop a more factory and to meet deadlines. DNC Professional, is the Company's DNC system that provides a variety of features to its users, including the ability to view and edit electronically all of the documents and data that are required to perform certain manufacturing functions. It also organizes these documents and data utilizing a database (Oracle, Microsoft SQL Server, or dBase) that allows shop floor personnel the ability to easily locate pertinent information easily and quickly. DNC refers to the technology used to connect groups of Numerically-Controlled (NC) or Computer-Numerically Controlled (CNC) machine tools to computer systems. Using digital instructions, these machines produce a variety of precision parts, such as engine components, aircraft parts, joint prostheses and molds for other parts. DNC allows the transmission of part programs to and from computers and machine tools. Cimnet has sales throughout the United States and abroad. Approximately 76% of the sales for the year ended December 31, 2005, were throughout the United States. Representative customers include GE Power Systems, Alcoa, Johnson & Johnson, Raytheon, Timken, Nestle Foods, Barber Foods, Caterpillar and Coca Cola. The Company competes with InterCim, Greco Systems and Predator, Camstar, Rockwell Automation, Invensys, Siemens and GE Fanuc.

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