BluePhoenix Solutions, Ltd. (BPHX)

[B7$4]

"BPHX News" BluePhoenix to Expend Its Software Offering, Will Add COBOL Software to the Company Portfolio
BluePhoenix and Veryant Partner to Target Open Platform COBOL Market, Bringing to the Market the Most Competitive COBOL Environment for Open Platforms

http://www.marketwatch.com/story/bluephoenix-to-expend-its-software-offering-will-add-cobol-software-to-the-company-portfolio-2010-05-20?reflink=MW_news_stmp

HERZLIYA, Israel, May 20, 2010 (BUSINESS WIRE) -- BluePhoenix Solutions /quotes/comstock/15*!bphx/quotes/nls/bphx (BPHX 1.67, -0.03, -1.76%) , the leading provider of value-driven legacy IT modernization solutions, today announced a strategic partnership with Veryant, the COBOL and Java technology innovator, to add isCOBOL software to its portfolio, and include the software as part of the company leading suite of modernization tools and solutions. This new initiative is part of the company strategy to expand its software license sales.

As part of this partnership agreement, BluePhoenix will market and resell Veryant's isCOBOL product, targeting existing open systems COBOL customers.

The main advantages of the new offering are:

-- The most cost effective solution to COBOL deployment on open platforms with significant lower software licensing fees compared to competitive solutions

-- An effective bridge from COBOL to the modern JAVA world

-- Advanced integration with leading tools and products used for legacy modernization

-- BluePhoenix strength and experience combined with a well proven COBOL solution

-- The company offers the best comprehensive suite for legacy modernization

With a team of over 750 highly experienced professionals, BluePhoenix provides end-to-end solutions for companies looking to move from outdated and costly legacy applications and COBOL platforms to newer technologies and architectures that foster innovation and improve business value. isCOBOL technology offers the unique ability to continue development in COBOL, while simultaneously modernizing and deploying applications across multiple platforms in an open Java framework.

"We believe that this new offering will change the COBOL landscape in the open platform market. Our partnership provides a very competitive solution. Customers will have the ability to move to a superior technology while significantly reducing the licensing and maintenance costs associated with running COBOL in open platform environments," said Arik Kilman, CEO, BluePhoenix. "We estimate the annual open systems COBOL market to be valued at more than 300 million dollars. There are a multitude of companies facing steep COBOL licensing and maintenance fees and we believe that our joint offering is a compelling option in both technology and costs aspects."

BluePhoenix has already successfully migrated several customers to Veryant's isCOBOL technology, among them a U.S. government agency and a transportation and logistics firm. In these cases, BluePhoenix delivered a modern, updated Java-based application framework that dramatically lowered ongoing software licensing fees.

To address the growing COBOL alternative market, BluePhoenix and Veryant will collaborate in co-marketing activities; BluePhoenix will also offer its customers first-line product support.

"I'm excited about our new strategic partnership with BluePhoenix. We believe that our innovative technology coupled with BluePhoenix's ability to address the market will provide businesses with the software and service solutions required to successfully address today's market challenges," commented Alfredo Iglesias, vice president of business development, Veryant. "isCOBOL provides a full-featured, affordable COBOL alternative to existing products while simplifying ongoing development and enhancing modernization initiatives."