First Index And MTI Systems Form Strategic Partnership

W. SPRINGFIELD, MA (August 13, 2004) - MTI Systems, the leading provider of innovative cost estimating software solutions for manufacturing, and First Index, the world’s most trusted sourcing/bidding service for buyers and suppliers of custom manufactured components, today announced they have formed a partnership that provides customers valuable savings on each others products and services.

The terms of the partnership provide significant discounts to First Index customers on MTI Systems’ Costimator OEM and Costimator JS Cost Estimating Software products. First Index will also provide savings on its online sourcing services to MTI Systems customers. The natural relationship between cost estimating and sourcing/bidding in the procurement process make this a significant value-add to both MTI Systems and First Index customers, providing them with premier products and services at a significant discount.

"We are excited about this new strategic partnership,” comments Bill Burke, President of First Index. “Current Costimator users have a real advantage in the marketplace due to the speed and accuracy the system brings to their estimating process. This greatly enhances their opportunity of winning bids. Our customers will now be able to purchase and utilize this critical tool at a substantial discount, improving their chances of winning jobs."

Tom Charkiewicz, President/CTO of MTI Systems, states "The synergy between MTI and First Index customers make this an ideal partnership. First Index is the premier on-line sourcing service in the industry. We are excited about the relationship and the added benefits it will bring to our customer base."

About MTI Systems, Inc.

MTI Systems, Inc. is a world-leader in the development of innovative cost-estimating software and consulting services, providing competitive-edge solutions for manufacturing since 1982.

Costimator JS helps suppliers produce timely cost estimates that are both consistent and accurate to within 5% of actual costs. This allows companies to bid with confidence, giving them an optimal chance to win profitable jobs. Costimator OEM helps OEMs implement predictable costing strategies by breaking down and quantifying the true costs of manufactured parts. This cost information is then used by procurement personnel to set benchmarks for negotiations with suppliers. For more information on either Costimator product, contact David LaJoie at MTI Systems, 1111 Elm Street, Suite 6, West Springfield, MA 01089, 413-733-1972, Fax 413-739-7250, email [email protected], or visit www.mtisystems.com.

About First Index

First Index has been matching buyers and suppliers of engineered components for over 10 years. Their global sourcing service helps large, diversified manufacturers reduce their cost for engineered parts through a combination of RFQ automation, access to a global database of Profiled suppliers and the support of over 100 sourcing experts. Buyers source billions of dollars of parts annually with First Index in a wide variety of industries including automotive, aerospace, industrial machinery and automation, heavy equipment, electronics, energy, and medical devices.