Cornell University Study Demonstrates Increased Productivity and Decreased Health Risk Using Magnitude Ergonomic Software

Business Wire, Oct 5, 1999

NEW YORK--(BUSINESS WIRE)--Oct. 5, 1999--

Magnitude Information Systems, Inc. (NASDAQ: MAGY), announces the results of a Cornell University Study which demonstrate improved productivity and decreased downtime of office workers who utilized its Ergonomic Management Software (EMS).

The Cornell Study demonstrates the viability of the EMS package which is being utilized and marketed by AON Ergonomics Services, a division of AON Corporation (NYSE: AOC). AON Corporation is a worldwide leader in the insurance industry.

The study, conducted by Alan Hedge, professor of design and environmental analysis and director of Cornell's Human Factors and Ergonomics Laboratory, measured over four million keystrokes of 21 employees of New Century Global, a New York City based insurance broker and general managing agent. Two groups, one control group and active group, which utilized the Magnitude EMS system were compared over a ten-week period.

The purpose of the study was to evaluate the effectiveness of EMS. EMS is an ergonomic software package consisting of seven products that dramatically increases worker productivity by reminding the user to use proper posture, take 30 second breaks, and to perform appropriate stretching exercises.

The findings of the study revealed that workers who utilized EMS experienced 13% greater accuracy in work productivity and a 40% decrease in typing errors. Hedge stated, "Inappropriate work organization eventually has a deleterious effect upon work output and quality. Workers in this situation run a greater risk of injury. This is the first truly extensive and real-world study that has accurately measured real productivity and shown benefits above and beyond overuse injury protection. With the potential reduction of injury associated with overuse of computers, there is now a compelling economic reason to use ergonomic risk management software to optimize workflow."

Lee Anne Orabona, director of business operations of New Century Global stated, "If anyone told me that making simple changes to the way people use computers could lead to a 13% improvement, I'd have dismissed it out of hand. But seeing is believing. We measured the results and we can see the difference in the amount of work we're completing. You can see and feel the difference in the positive attitudes around the office."

"We're elated," stated Steven Rudnik, President of Magnitude Information Systems, Inc. "The Cornell study proves what many ergonomists, human resource, and government folks have thought possible for some time - knowing how to type is not sufficient to use the computer tool correctly. Slight changes to the way people work, utilizing the EMS program can make the difference in reducing keyboard over use injuries, improving productivity and worker morale."

Earlier this year, Magnitude Information Systems announced a renewal of a strategic alliance with AON Ergonomics Services, a division of AON Worldwide Resources. AON Worldwide is a $6.4 billion insurance services company. Under this arrangement, AON would market customized versions of EMS to its business units as well as Fortune 1000 clients.

Sharon A. Falkenburg, president of AON Ergonomic Services stated, "We are very excited about Magnitude's EMS because it's a unique solution that can help our clients mitigate health risks, reduce costs, and measurably improve productivity. "The renewal and extension of this agreement with AON clearly speaks for the quality, effectiveness and need for Magnitude's EMS," stated Steve Rudnik, President and Chief Executive Officer of Magnitude Information Systems, Inc. "We are very pleased to work with AON and we're confident that AON will help us significantly increase sales."

The results of the Cornell study, AON's continued commitment, and recently proposed ergonomic standards for reduction of work related musculoskeletal disorders presents a significant opportunity for Magnitude Information Systems, Inc.

Magnitude Information Systems, Inc. is a leading manufacturer of research-based software products focused on the enhancement of productivity and ergonomic solutions for the computer workplace. Magnitude's products play a key role in office productivity gains and reduced workers compensation and productivity costs associated with office workers working at computers.

THE SAFE HARBOR STATEMENT UNDER PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. This press release contains forward-looking statements that involve risks and uncertainties including the risks detailed from time to time in the Company's Securities and Exchange Commission filings.