BluePhoenix Signs $1.5 Million IT Modernization Contract with Leading Transportation and Logistics Company 

CARY, NC--June 18, 2009--BluePhoenix Solutions (NASDAQ: BPHX), the leader in value-driven IT modernization solutions, today announced that it has been awarded a contract, valued in excess of $1.5million, to modernize critical business systems for a leading transportation and logistics company.

The company, looking to modernize its core financial shipment management systems, selected BluePhoenix to migrate IBM OS390 hosted applications and databases to an open source Linux platform. Legacy ADABAS and VSAM databases are being replaced by a Microsoft SQL Server based solution, while Natural and COBOL business logic is being converted into JAVA applications.

In addition to reducing the license costs associated with its legacy technologies, the company was motivated to modernize its IT infrastructure so that it could offer its customers new and enhanced features – including order management and shipment tracking facilities.

The project, that followed a BluePhoenix assessment of the customer’s modernization needs, is scheduled to be complete by the end of 2009.

“This engagement is testimony to our ability to provide businesses with impartial technology modernization advice and to then be able to execute those recommendations for them” said Yaron Tchwella, CEO, BluePhoenix Solutions. “BluePhoenix has a amassed a wealth of IT modernization experience by helping numerous customers around the world reduce their operating costs, improve business agility and become more efficient as a result of modernizing their core information technologies.”

About BluePhoenix Solutions

BluePhoenix Solutions (NASDAQ: BPHX - News) is the leading provider of value-driven legacy IT modernization solutions. BluePhoenix offerings include a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, re-hosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.

BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, Capita Group, CareFirst, Citigroup, Danish Commerce and Companies Agency, Desjardins, Los Angeles County Employees Retirement Association, Rabobank, Rural Servicios Informaticos, SDC Udvikling, TEMENOS, Toyota and Volvofinans. BluePhoenix has 15 offices in the USA, UK, Denmark, Germany, Italy, France, The Netherlands, Romania, Russia, Cyprus, South Korea, Australia, and Israel.

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Contact

Varda Sagiv
BluePhoenix Solutions
+972-(0)9-9526110
vsagiv@bphx.com