Xelus Completes Kirus Acquisition

Says new services close loop for capital equipment service

Rochester, NY —- April 22, 2003 — Xelus Inc., provider of enterprise service management (ESM) solutions for aftermarket service of high-value capital equipment, today announced it has completed its acquisition of Kirus Solutions Inc. The Kirus software for reverse logistics and depot repair management has become part of the expanded Xelus ESM suite, closing the loop for service parts planning and execution, according to the provider.

"The companies' products and staffs complement each other well, giving Xelus a much broader and expanded total service parts management footprint," said Larry Lapide of AMR Research, in the November 15, 2002, AMR Alert. "With this move and others expected, Xelus, in the long run, should continue to stay a leader in this high-potential market."

Xelus said it optimizes global service inventory and supply strategies to make the most of the uptime for capital equipment — from computer networks to weapons systems. This includes planning for the optimal use of returned assets. Kirus' software manages the process of recovering these assets, including reverse logistics, warranty tracking, depot repair and asset re-disposition activities. Together, they position the service parts at all points in a global service network, recover repairable inventory and return recovered assets to the supply stream.

Kirus' understanding of execution software also allows Xelus to create ties between planning and execution throughout the closed-loop process: from parts sourcing and fulfillment to the return, repair and redeployment of those assets.

"This is a strategic acquisition to expand the Xelus solution footprint, driven by our commitment to give our customers the best and most complete solution for enterprise service management," said Terry Stinson, chairman and CEO of Xelus. "Through our partnerships with service leaders such as HP and Dell, we identified reverse logistics and depot repair as a key part of the solution. We're pleased to have found a partner with the technology, experience and passion for service that matches our own."

Kirus founder Dr. Ho Kim has been named vice president of product planning and management at Xelus, reporting to CEO Stinson. Xelus plans to retain its headquarters and development center in Rochester, NY, and the Kirus development center in Irvine, Calif.