Applix Announces Sale of CRM Business to Platinum Equity, LLC; Transaction Allows Applix to Focus On Its Rapidly Growing Business Performance Management Products and Solutions

Business Wire, Jan 23, 2003

Business Editors/High-Tech Writers

WESTBOROUGH, Mass.--(BUSINESS WIRE)--Jan. 23, 2003

Applix, Inc., (NASDAQ: APLX), a global provider of enterprise-wide Business Performance Management solutions, today announced the sale of its customer relationship management (CRM) business to Platinum Equity, LLC, a global organization specializing in the acquisition and strategic operation of mission-critical technology companies.

Under the agreement, Platinum Equity is acquiring Applix's CRM business, related intellectual property and customers. The transaction will allow Applix to focus all of its resources on its core business in the rapidly growing Business Performance Management (BPM) market, while enabling Platinum Equity to immediately increase its presence and customer base in the CRM market. Total consideration for the transaction was approximately $8.75 million, consisting of $5.75 million in cash and the assumption of approximately $3 million in net liabilities by Platinum Equity.

"With this agreement, Applix has taken another step in its transition into a pure play provider in the growing Business Performance Management market," said Applix President and CEO Alan Goldsworthy. "Applix worked hard to establish its CRM business and we are pleased that Platinum gave us such an attractive valuation for our assets, while making the commitment to our customers to provide them with a viable long-term platform. This transaction gives us the opportunity to now totally focus our corporate resources on one market and create increased value for our customers and shareholders. At the same time, we are strengthening an already healthy balance sheet, which will give us the flexibility to pursue growth opportunities and support the evolving needs of our customers by developing additional BPM applications and enhancements to our Integra platform."

"More than 200 new analytics customers, coupled with the introduction of three products, helped to drive strong revenue growth in 2002. We are confident we will be able to continue strong growth as a pure play in the BPM market," continued Goldsworthy. "We are capturing increased market share and directly benefiting from the substantial revenue opportunities worldwide."

"This is a strategic acquisition that nicely complements our existing roster of portfolio companies," said Johnny O. Lopez, executive vice president for mergers and acquisitions at Platinum Equity. "We're acquiring a business with great potential to operate as a stand-alone business and in concert with other companies in our portfolio."

Applix's CRM suite is a web-based collaborative solution that optimizes and integrates local and disparate operations for marketing, sales, customer service, partner management, quality assurance, help desks and internal IT organizations. The software is designed to improve user's customer acquisition, satisfaction and loyalty.

A portion of the sale has closed; the sale of the Germany operations is expected to close in approximately 4 to 6 weeks, pending receipt of German antitrust approval. At the first closing $4.25 million was paid and a $1.5 million payment is due at the closing of the German portion of the transaction.

First Albany Corporation acted as financial advisor to Applix in connection with this transaction.

About Platinum Equity

Platinum Equity (www.peh.com) is a global acquisition firm uniquely specialized in the operation of mission-critical technology companies. Since its founding in 1995, Platinum has completed more than 40 privately funded transactions, leveraging a multi-billion-dollar revenue base derived from the continued growth of its portfolio. With an established infrastructure in North America, Europe, Asia and South America, Platinum employs a workforce of more than 15,000 serving over 600,000 customer sites worldwide.

About Applix

Applix (NASDAQ: APLX) is a global provider of enterprise-wide Business Performance Management solutions. These solutions enable the continuous management and monitoring of performance across the financial, operational, customer and organizational functions within the enterprise. More than 1,600 customers worldwide use Applix's adaptable, scalable and real-time solutions, delivered by Applix and by a global network of partners, to manage their business performance and respond to the marketplace in real time. Headquartered in Westborough, MA, Applix maintains offices in four countries in Europe, North America and the Pacific Rim. For more information about Applix, please visit www.applix.com.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated. Refer to the Company's quarterly report on Form 10-Q for the period ended September 30, 2002 under "Factors That May Affect Future Results" for a further discussion of these risks and uncertainties. Applix does not undertake - and specifically declines any obligation - to publicly release the result of any revision that may be made to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.