Milwaukee, WI, April 12, 2006— On the strength of new sales to one of the world’s largest automotive manufacturers, to a leading appliance manufacturer, and to a large regional department-store chain, Catalyst completed its first quarter of 2006 with growth that was above expectations in license sales, services business, and overall profitability. These first quarter results continue the momentum, and trend, set in the fourth quarter of 2005 for increased profitability.

“We are quite pleased with the continued strong, steady progress that we are making in returning Catalyst to market leadership as the premier provider of warehouse and logistics management software and services to the largest retail, manufacturing, and wholesale warehouse operators,” stated Michael Eleftheriou, Catalyst President and CEO. “We have made great progress in enhancing Catalyst’s profitability in the fourth quarter of 05, and that strong trend continued in the first quarter of 06. As a primary provider of supply chain execution and management solutions for complex enterprise distribution networks, it is important to note that Catalyst continues to invest and expand our software technology footprint, while also serving the ongoing customization needs of our clients. Organizational changes, focused investment, and commitment to the process disciplines, fundamental to our business, have all contributed to these steadily improving results.”

In the first quarter of 06, Catalyst secured software license sales at a record level not seen in several years, along with significant strength in Best Of Breed customization services, and SAP consulting and implementation services. Both new and expanded business in the quarter included The Bon-Ton Stores, Jarden, Dixons, OfficeMax, Homebase, The Body Shop, Yamaha Motor, and sales to global leaders in consumer retailing, and automotive and process manufacturing in North America, Europe, and China.

“Our focus is on steady, unrelenting improvement through the remainder of 06 and beyond. We will continue to make improvements in our ability to execute, delight our clients, and steadily increase our sales pipeline and revenue. Fueled by our progress and momentum thus far, and by our clients deploying the Catalyst software suite, I firmly believe that we will continue to improve throughout the year. We look forward to getting together with our clients, prospects, and partners, at our User Forum, April 23-25, to demonstrate our complete suite of software, share our strategies, and build on this momentum,” concluded Eleftheriou.

About Catalyst
Catalyst International, Inc. is a software and services company specializing in building and implementing solutions in the enterprise level Supply Chain execution, management, and planning marketplace. These solutions are based on its comprehensive, open architecture, integrated suite of software offering Warehouse management; Yard management, Labor management, and Transportation management; Slotting, RFID, Inventory Optimization; and on its Best Of Breed and SAP services.Catalyst’s solutions cater to the complex distribution problems for the large enterprise in the retail, manufacturing, process and consumer packaged goods sectors. Headquartered in Milwaukee, Wisconsin, the company has offices or representation in UK, Italy, Mexico, Latin America, Canada, China, and India, and implements programs for clients around the world. For more information, visit