SEPESI, INC. ANNOUNCES RELEASE 2.0 OF SHIPS™ 
EXPORT-IMPORT MANAGEMENT SOFTWARE.
NEWEST RELEASE INCLUDES IMPORT MANAGEMENT

Rhinebeck, NY, May 16, 2000 — Sepesi, Inc. announces the release of a new import module for its SHIPS software package. Originally released in June 1998, the SHIPS Export Management System was the first software package of its kind designed to seamlessly integrate with Mfg/Pro by QAD Inc. SHIPS Export allows exporters to control the export process in-house by performing export compliance reviews on pending shipments and printing professional looking and accurate export documentation.

With release 2.0, SHIPS Export-Import gives importers the tools to manage and track the import process within the Mfg/Pro environment. For companies who re-export imported goods directly or as components of manufactured items, a significant opportunity for cost savings exists. Companies may apply to U.S. Customs for a refund of 99% of the duty paid on imported goods, if the goods are ultimately re-exported. Called "duty drawback", this practice permits the manufacturer to compete in foreign markets without the handicap of including the costs of duty paid on imported merchandise in the exported product. In practice, most companies do not apply for duty drawback because the task of tracking imported goods and duties paid while determining where the goods were used and shipped is too daunting. Also, records to support drawback claims must be credible to survive a possible Customs audit.

SHIPS Export-Import is designed to address these issues and more. The software provides the means to record import data not within Mfg/Pro (Customs entry summary, supplier invoice) and uses data already within Mfg/Pro (purchase orders, work orders, bills of material, transaction history) to automatically determine where your opportunities for duty drawback exist. Used in conjunction with existing SHIPS export functionality, exported product is examined for possible use of imported goods in the manufacturing process. Drawback refund claims are assembled from the record of drawback opportunities. Claims may be sent to the importer's customs broker in file format for filing with Customs.

New SHIPS Export-Import features include:

· Import Entry tracking pre-entry and post-entry. Purchase order data (if available) defaulted upon create.

· Import Entry recording of imported goods, valuation, duty and fees paid, import invoices and pricing.

· Lot and serial tracking of goods as recorded on the import invoice. Cross-referenced to lot/serial used on receipt of goods into inventory (which may differ).

· Reconciliation process support. When goods are imported without all information available (such as value), U.S. Customs permits the importer 12-15 months to obtain the correct information and file a Reconciliation Entry.

· Duty Drawback process support.

· Direct ID or substitution matching of exported goods to imported goods is supported. Where possible, work order component issues are used to identify usage. Otherwise, bills of material are used.

· Harmonized tariff schedule (HTS) maintained for reference and validation. Updates are maintained on the www.sepesi.com website. E-mail notification to customers when a new version should be downloaded.

· Reporting and tracking on import, reconciliation and drawback entries. Options to submit claims in file format supported.

SHIPS Export-Import is designed to make the import process simpler, enabling companies to manage the costs of importing, obtain the duty drawback they are entitled to, and have accurate, verifiable records to substantiate their claims.

Contact Information:
Sepesi Inc.
P.O. Box 481
Rhinebeck, NY 12572 USA;
Telephone 845-876-5101
Fax 845-876-7826
e-mail: info@sepesi.com.
http://www.sepesi.com.

PROGRESS is a registered trademark of Progress Software Corporation
MFG/PRO is a registered trademark of QAD Inc.
Quantum and Vertex are trademarks of Vertex, Inc.
UNIX is a registered trademark of UNIX Systems Laboratories
SHIPS is a trademark of Sepesi, Inc.