6/21/05

Prescient Applied Intelligence to Offer Subscription-Based VMI Services

Paul Demery , Managing Editor, B2B E-commerce

New VMI Service Addresses Business Process Outsourcing Trend

WEST CHESTER, Pa.--June 21, 2005--Prescient Applied Intelligence, Inc. (OTCBB: PPID), a leading provider of supply chain and advanced commerce solutions for retailers and suppliers, announced the availability of Vendor Managed Inventory (VMI) Services at its recent client conference. The new subscription-based service, which is comprised of Prescient`s award-winning VMI software and outsourced expertise, enables faster implementation, compliance with retailer requirements and rapid ROI for companies that have limited internal resources or knowledge of the software.

Because of the intense competition in today`s retail market and the need to operate a more efficient supply chain, retailers view VMI as a way to reduce the costs and risks associated with buying, storing, invoicing and tracking goods. In a typical VMI relationship, the supplier is responsible for maintaining its retail partners` inventory levels based on retailer-supplied demand information.

VMI provides significant benefits to suppliers, including visibility into retailer item activity data, which results in improved forecast accuracy; lower supply chain costs including reduced lead times, inventory levels and transportation costs; improved in-stock rates and increased sales; and higher service levels, which result in better relationships with trading partners.

Prescient`s VMI Services allow suppliers to benefit from VMI immediately. In a May 18, 2005 AMR Research Alert entitled, "SCM Business Process Outsourcing: A Viable Alternative," analyst Lora Cecere writes: "The time to implement (supply chain planning software) is long, and companies do not want to wait to reap the savings."

"There was a very short window between implementing and going live with our VMI program -- we couldn`t afford to make mistakes," said Jim Glendon, supply chain manager at Sunny Delight. "Prescient provided an end-to-end VMI solution, from hosting the software to outsourcing analyst services. The time we saved on implementation, staffing requirements and training allowed us to get our VMI effort running in eight weeks."

"Because VMI is complex, its success hinges on the supplier`s ability to understand, interpret and act on the data provided by the retailer -- the person driving the process needs to know all the critical aspects of VMI," said Jane Hoffer, president and CEO of Prescient. "Prescient has a well-deserved reputation for providing proven and effective VMI solutions because we have a deep understanding of the process. VMI Services allow companies to benefit from our many years of experience on an as-needed basis."

In addition to outsourced headcount and subscription-based software, Prescient`s VMI Services include:

-- Management and maintenance of forecasts

-- Analysis and management of forecast/inventory exceptions

-- Maintenance of forecast and inventory parameters

-- Communication with trading partners around new items and promotions

-- Preparation and execution of performance reports

-- Maintenance of purchase orders

Prescient provides a continuum of solutions for retailers and suppliers that translate consumer insight into better execution at the store shelf by capturing scan-sales data, improving forecast accuracy and increasing supply chain efficiencies.

About Prescient Applied Intelligence, Inc.
Prescient Applied Intelligence, Inc. enables retail trading partners to align planning and execution with changing market needs to maximize relationships and deliver on the promise of collaborative commerce. The company`s retailer-centric and collaborative commerce solutions are designed with the understanding that product demand and business processes are fluid. Prescient`s solutions capture information at the point of sale, provide greater visibility into real-time demand, and turn data into actionable information across the entire supply chain. As a result, the company`s products and services enable trading partners to compete effectively, increase profitability, and excel in today`s retail business climate. Household brand names like Ahold, AutoZone, Coors, Domino`s Pizza, Rite Aid, Sara Lee, Schwan`s, and Wyeth rely on Prescient. For more information, go to www.prescient.com.

Forward-looking Statement
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to Prescient Applied Intelligence, Inc. are intended to identify such forward-looking statements. Prescient may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in Prescient`s report on Form 10-KSB filed with the Securities and Exchange Commission and its other filings under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

Contact:
Articulate Communications Inc.
Megan Garnett
212-255-0080, ext. 14
mgarnett@articulatepr.com

Topics:

business, Business process outsourcing, inventory, Outsourcing, Vendor-managed inventory

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