CARY, North Carolina — Wednesday May 2, 2007 — BluePhoenix Solutions (NASDAQ: BPHX - News), the leader in value-driven legacy modernization, announced today the successful completion of a strategic modernization project for Toyota Motor Sales (TMS), U.S.A., Inc.'s vehicle distribution system.

TMS enjoyed significant savings by utilizing BluePhoenix Solutions to carry out a large modernization project. The new system enables TMS to expand pricing capabilities and offer greater vehicle accessory customization options to customers.

The project involved global assessments and field expansions of 4,200 vehicle pricing and vehicle accessory programs. The modernization was performed using the automated BluePhoenix(TM) FieldEnabler solution along with BluePhoenix's proven methodology and professional services.

"BluePhoenix Solutions has proven its expertise in delivering high quality, automated modernization solutions," said Karen Nocket, Corporate Manager for TMS Automotive Systems. "They enabled TMS to make broad system changes in a consistent and efficient way. This project will help us respond to the growing market demand for Toyota, Lexus and Scion vehicles by making the system more extensible."

"Toyota's commitment to outstanding quality and continuous improvement is evident in all aspects of its business," said Arik Kilman, CEO of BluePhoenix Solutions. "Through this modernization effort, Toyota Motor Sales is addressing its customers' needs through an innovative vehicle distribution system that offers better pricing strategies and increased ordering efficiency."

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, Volvofinans, Ford Motor Company, JM Family Enterprises, Inc. and others.