EAST RUTHERFORD, NJ, October 28, 2002, Management Dynamics, Inc., a leader in tariff and contract management systems for the ocean transportation industry has announced that a group of executives and investors, led by Jim Preuninger and John Preuninger, have completed a buyout of Management Dynamics from Celarix, Inc., Cambridge, Massachusetts. In addition, Management Dynamics secured $6.7 million in financing, which will be used to expand product development and penetration into new markets. The financing was led by Cross Atlantic Capital Partners (XACP), Radnor, Pennsylvania, and included the New Jersey Technology Council Venture Fund (NJTCVC), Mt. Laurel, New Jersey; the Megunticook Fund, Boston, Massachusetts; and Jim and John Preuninger, Management Dynamics' founders.
 
As part of the buyout, Management Dynamics has named five members to its Board of Directors. Glenn Rieger, Founder and President of XACP, will serve as Chairman of the Board. Robert Chefitz, General Partner of NJTCVC, and Matthew Lorentzen, General Partner of Megunticook, will join the Board, along with Management Dynamics' CEO, Jim Preuninger, and President & COO, John Preuninger.

Glenn Rieger said, "We are excited about the opportunity to invest in Management Dynamics, especially at a time when new venture capital deals are very rare. The company has a veteran management team, proven revenue streams, profitable operations, and a significant market share in the global ocean carrier space. With over 6,000 current users around the world, the company is now poised to further its expansion into the ocean carrier, shipper, and transportation intermediary markets."

The Preuningers originally founded Management Dynamics in 1990 and spearheaded the company's strong growth into tariff and contract management solutions for the ocean transportation industry in the late 1990s with the advent of OSRA. Today, Management Dynamics is the dominant player in its space, with 16 of the top 40 ocean carriers using its Rate Explorer software. The company's strong momentum is further demonstrated by the fact that eight global carriers have switched from another vendor's software to Management Dynamics' system within the past two years.

Jim Preuninger said, "The buyout of Management Dynamics provides us with the opportunity to operate as an independent company again. Our contract management system has a proven and significant value proposition in the ocean carrier world. We now have the resources and freedom to aggressively expand our efforts in the shipper and transportation intermediary markets."

Today, over 90% of all ocean transportation transactions are conducted under a confidential service contract, with over 35,000 contracts executed last year in the USA alone. These contracts are incredibly complex and subject to frequent revisions, which if maintained in a traditional text format produce costly errors in bills-of-lading and are extremely unproductive to manage. Management Dynamics' flagship product, Rate Explorer, is a Web-based solution that adds significant value to ocean carriers, transportation intermediaries and shippers by producing calculable service contracts that accurately and efficiently calculate freight totals.

According to Gerald McNerney, senior analyst, AMR Research, "Rate Explorer has been exclusively sold to carriers, but it has a strong value proposition for shippers and freight forwarders of ocean containers. By shifting cumbersome text-based contracts to an electronic format that provides the flexibility to calculate and compare contract rates, shippers can reduce the tendency for error while achieving cost and efficiency savings. The ability to present the market with an attractive price and value proposition that leverages a lean cost structure and proven track record makes Management Dynamics worthy of consideration."

About Cross Atlantic Capital Partners
Cross Atlantic Capital Partners manages investments in technology companies located in the United States, Ireland, and England. Cross Atlantic Capital Partners is uniquely qualified to penetrate these markets and promote the growth of its portfolio companies due to its "Cross Atlantic Network" of advisors, strategic relationships, geographic presence and experienced managing directors. For information, see: www.xacp.com.

About the New Jersey Technology Council Venture Fund
The NJTC Venture Fund provides responsive capital and an unparalleled active local network of business partners through its affiliation with the leading business networking organization in New Jersey: The New Jersey Technology Council. For more information, go to: www.njtcvc.com.

About the Megunticook Funds 
Based in Boston, the Megunticook Funds invest in early and growth stage companies in three sectors: media, communications, and logistics and supply-chain technologies. For additional information, visit www.megunticook.com.

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