Integrated Information Systems Forms Supply Chain Division Offering Solutions with High Return on Investments

Business Wire, Feb 26, 2002

Business Editors

TEMPE, Ariz.--(BUSINESS WIRE)--Feb. 26, 2002

David Graff Appointed IIS Managing Vice President for New Division

Integrated Information Systems Inc. ("IIS") (NASDAQ: IISX), an innovative technology and business consultancy, Tuesday announced the formation of its Supply Chain Integration Division to meet an increasing demand for supply chain related services.

Over the past two years, IIS has grown this concentrated practice through assisting manufacturing clients with developing and deploying integrated solutions which have quickly delivered significant results. The IIS Supply Chain Integration Division is focused on providing supply chain solutions to major manufacturers on a national basis.

David Graff has been appointed to the position of IIS managing vice president to lead the Division.

IIS' supply chain practice uses an assessment-based approach to quickly evaluate supply chain performance and identify improvement opportunities from both a process and technology perspective. These improvement projects are prioritized and deployed with a focus on delivering value to the manufacturers' bottom line.

Using this approach, project teams, in many instances, are able to deliver value within weeks of the launch of a project. Results from the initial smaller-in-scope projects are then used to fund larger supply chain improvement efforts. The identified improvements leverage clients' currents systems in combination with technology enablers. This approach has driven significant results without major software and infrastructure investment for clients.

Prior to his appointment, Graff was a vice president with IIS focusing on manufacturing and aerospace clients in the Southwest, where he led a team of

technology and business experts specializing in the delivery of supply chain solutions. Before joining IIS in April 2001, Graff was vice president of sales, North America, for Pensare Inc.

Previously, he was a senior manager with Ernst & Young LLP, Consulting Services Group, where he managed the selling and deployment efforts of large consulting engagements for Fortune 500 manufacturing, insurance and financial services clients. Graff gained manufacturing experience at Goodyear Aerospace as an industrial engineer-cost estimating analyst.

He received his Bachelor of Science degree in engineering, with an emphasis on CAD/CAM and production control, from Arizona State University.

"In this economy, businesses are focusing on value-driven IT projects. Cost reductions and cost savings are on the forefront of all manufacturers' agendas, and our supply chain team has the expertise and track record to deliver results," said Graff.

"We have saved large manufacturers millions of dollars in operating costs; and the commitment from the IIS management team to create a national presence will enable us to effectively scale to meet market demands."

"The IIS Supply Chain Division led by David Graff enables IIS to deliver immediate results to its clients," said Jim Garvey, chairman, chief executive officer and president of IIS. "Our supply chain professionals' method to drive cost reductions and savings begins showing measurable results for clients within weeks of implementation.

"With expertise in manufacturing and supply chain systems and his proven record of client successes since joining IIS, David is an excellent choice to lead the IIS Supply Chain Division."

About IIS

Integrated Information Systems(TM) is an innovative technology and business consultancy providing extensive experience and insight to create a sustainable competitive edge for clients. For companies who seek measurable results from business and technology investments, IIS offers cost-conscious, productive, profit-minded solutions across the entire service value chain with single provider accountability.

Founded in 1988, IIS employs approximately 425 professionals, with offices in Bangalore, India; Boston; Denver; Madison, Wis.; Milwaukee; London; New York; Phoenix; and Portland, Ore. Integrated Information Systems' common stock is traded on Nasdaq under IISX.

For more information on Integrated Information Systems, please visit our Web site: www.iis.com.

Cautionary Statement

This news release contains forward-looking statements about IIS, including statements concerning the ability of the company to sell more services to clients in the Southwest and nationally. These forward-looking statements involve a number of risks and uncertainties which could cause actual events to differ materially from those indicated by such forward-looking statements and cause the company's stock price to decline.

Such factors include, without limitation, the ability of the division leaders to replicate prior regional success across the company, company's management to execute its business plan, lower than expected demand for the company's services, reductions in pricing for the company's services and products, the ability of customers to pay their invoices when due, the ability of the company to continue to comply with Nasdaq listing requirements, the ability of the company to obtain new clients and retain existing clients, the ability of the company to manage its projects effectively, the ability of the company to stay at the forefront of technological changes, and the company's ability to attract client relationships and key senior professionals or to profitably integrate these professionals into the company's business and operations.