Gulf States Toyota 

 
BluePhoenix Selected for Major Modernization Project
on Vehicle Distribution System


IT Service Provider for Toyota Distributorship Expects Modernized IT System to Maximize
Profitability through Improved Customer Service and Broader Offerings.


CARY, N.C. and HERZLIA, Israel — Sept. 6, 2006 — BluePhoenix Solutions (NASDAQ: BPHX - News), the leader in Enterprise IT Modernization, announced today that it was selected by the IT service provider for Gulf States Toyota, Inc., a major Toyota distributor, to modernize the company's vehicle distribution system. The modernized system will enable Toyota dealers within the distributor's region to improve vehicle purchase processes, broaden their offerings, and increase profitability.

"We are delighted to be working with leading IT modernization company BluePhoenix Solutions to address our new business needs," said Bill Russell, CIO. "With technology and services from BluePhoenix Solutions, we'll renovate our application and migrate from VSAM, a non-relational database to DB2, a relational one."

Gulf States Toyota, Inc., which processes and distributes vehicles and parts to 147 Toyota automobile dealerships across Texas, Louisiana, Arkansas, Oklahoma and Mississippi, is having its IT service provider undertake this major IT modernization initiative in order to maximize profitability by significantly upgrading customer service quality and efficiency, and broadening the array of products and services offered.

The IT project involves global assessment, conversion and field expansion. Migration is being performed using the automated BluePhoenix™ DBMSMigrator and BluePhoenix™ FieldEnabler solutions along with BluePhoenix proven methodology and professional services. BluePhoenix has already commenced working on this major project during the current quarter.

"This project follows several other successful migration assignments we have completed or are currently executing for companies in the automotive sector," said Arik Kilman, CEO of BluePhoenix Solutions. "Our proven methodology and advanced automation tools help customers grow revenue, reduce costs and better compete in the marketplace."

BluePhoenix Solutions has extensive experience in automated global assessment, platform, database, and application migration, and remediation projects for a range of customers in the automotive market, including BMW, DaimlerChrysler, Ford Motor Company, and others.