DaimlerChrysler Corporation announced today it is taking an equity stake in Powerway, Inc., an Indianapolis-based software company specializing in web-enabled quality planning software technology. The alliance marks DaimlerChrysler's continuing commitment to improve and enhance its business-to-business supply chain management strategy, which includes consistently seeking new opportunities.

"We have been looking at fresh approaches to taking our Extended Enterprise® supply chain management practices to new levels in the Internet environment," stated Peter Rosenfeld, Vice President, Procurement and Sourcing Strategy for DaimlerChrysler Corporation. "Powerway demonstrated to us that it is a forward-thinking company with a proven track record of working with all tiers of the supply base. It also has a comprehensive understanding of the complex and evolving quality standards required by OEMs."

DaimlerChrysler will work closely with Powerway and other suppliers to create software solutions that will automate and integrate a web-enabled Advanced Product Quality Planning (APQP) process while streamlining the Production Part Approval Process (PPAP) online. Both APQP and PPAP are part of overall industry standards required to meet manufacturers' quality certification on parts for vehicle production. The expected outcomes include creating two-way, dynamic information flow in real-time, improving product quality, enhancing communication and extended reporting capabilities among suppliers, as well as reducing additional time and costs currently involved in the quality management process.

"We are very excited to have the endorsement of DaimlerChrysler in the evolution of the Powerway software tools and our web-based application, Powerway.com," said Mike Campbell, CEO of Powerway. "With DaimlerChrysler's expertise in supplier relations and global supply chain management together with our background in supply chain software technology, this partnership has the potential to generate new standards of managing quality within the automotive industry."

After conducting research on what future efforts may lead to new "best practices," DaimlerChrysler recognized that significant efficiencies can be achieved in the product creation process. "We are focused on using the web to eliminate waste, thereby maximizing profitability and productivity throughout the Extended Enterprise®," added Rosenfeld. "With the Powerway technology, we all win -- suppliers, DaimlerChrysler, and ultimately our customers."

DaimlerChrysler and Powerway have already begun developing a customized interactive quality tool for its automotive supply chain. This tool will be based on Powerway.com, the first collaborative Internet workplace dedicated to improving supply chain performance based upon existing industry standards such as APQP and PPAP. Part of the development process involves a pilot program with DaimlerChrysler suppliers, which is targeted for this summer. This web- based application is expected to begin rolling out later this year and continue through 2001.

An extension of the commitment from DaimlerChrysler to Powerway is also recognized with the appointment of Peter Rosenfeld and John Stellman, Vice President, Mergers and Acquisitions, to Powerway's Board of Directors.

Powerway, Inc., founded in 1987, is a privately held software technology company specializing in document and process control solutions built around "best practices" (software, training, deployment and consulting services). Powerway has offices in Indianapolis, Mexico City and London, and 190 employees worldwide. Its list of approximately 3,500 customers spans the automotive, general transportation, appliance, and process industries, among others.