Catalyst International Sold to ComVest Investment Partners

Catalyst International Inc., a global provider of customer-driven software and services that optimize the enterprise supply chain, has signed an agreement with ComVest Investment Partners, an institutional investment firm, which will result in the acquisition of all outstanding shares of Catalyst. In the proposed transaction, a private company formed by ComVest would merge into Catalyst. The shareholders of Catalyst would receive $2.50 per share in cash in the proposed transaction. As part of the transaction, ComVest would also assume all outstanding indebtedness of Catalyst.

The transaction is subject to closing conditions, including approvals by Catalyst shareholders and the receipt of various third-party consents. Catalyst expects to hold a special meeting of its shareholders to consider the transaction in the third quarter of 2004 and, if the transaction is approved by the Catalyst shareholders, to close shortly thereafter.

Catalyst's board of directors has approved the proposed transaction, which was unanimously recommended by a special committee of Catalyst's directors that evaluated the offer. The board and the special committee have received a fairness opinion with respect to the proposed transaction from CIBC World Markets Corp., which acted as the exclusive financial advisor of the special committee in this transaction.

Michael S. Falk, managing partner of ComVest, states, "We are very pleased to have the opportunity to add Catalyst to our portfolio of companies. Catalyst's solution set is well-positioned to meet the evolving supply chain requirements of companies that use best-of-breed software or ERP solutions such as SAP to manage logistics, transportation and distribution. We believe Catalyst will give us an outstanding platform for expansion within the supply chain execution space."

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