F R O S T

& S U L L I V A N

2007

Camstar Systems, Inc.: Recipient of the 2007 North American Manufacturing Execution Systems C o m p a n y o f t h e Ye a r Aw a r d

Partnering with clients to create innovative growth strategies

Camstar Systems ,Inc.: Recipient of the 2007 North American Manufacturing Execution Systems Company of the Year Award

2007 North American Manufacturing Execution Systems Company of the Year Award

Award Description The Frost & Sullivan Award for Company of the Year is presented each year to the company that has demonstrated excellence in all operations. The Award is based on numerous factors including the companys business development, competitive strategy and leadership within a particular Frost & Sullivan Industry Research Group (IRG). This company is perceived to exhibit outstanding management, consistent growth, and positive social and economic impact on local and national communities and customers. Exceptional customer service, coupled with the ability to combine technology and successful strategic initiatives are essential to attain success. The Award recipient has also demonstrated superior market growth skills through significant gains in the market during the research period. This company has the exceptional know-how to take advantage of market changes through the execution of innovative strategies within the existing competitive landscape. Research Methodology In order to select the Award recipient, analysts quantify several market factors for each participant according to predetermined criteria, focusing on their combined operations efforts. This process includes interviews with all the market participants, customers, and suppliers, along with extensive secondary and technology research. The companies efforts are then analyzed based on the number of new customers, new segments, and commitment to business expansion coupled with market growth. Industry participants are then ranked based on the predetermined measurement criteria. Measurement Criteria In addition to the methodology described above, there are specific criteria used to determine the final Award rankings in this industry. The recipient of this Award has excelled based on one or more of the following criteria: Dominant market share within the given end-user segments Degree of strategy innovation Technological innovation and leadership Ability to deliver value-enhancing solutions to customers Expansion of installed base Potential of the technology to become an industry standard or degree of acceptance in the marketplace Impact of technology in terms of helping overall industry in improving profitability Established capabilities of the company to deliver this technology to the market as an innovator Increased name recognition

Market Overview Medical Device Manufacturing The Food and Drug Administrations (FDA) process control initiatives regarding the manufacturing process across the Life Sciences industries have opened up renewed focus on the MES software market. Due to strict documentation requirements surrounding product and process traceability, a complete 2007 Frost & Sullivan Page 2

Camstar Systems, Inc.: Recipient of the 2007 North American Manufacturing Execution Systems Company of the Year Award

manufacturing audit trail must be readily available for inspection by the FDA. All Life Sciences manufacturers are expected to comply with these regulations. Manufacturing Execution Systems (MES) allow manufacturers to create and manage detailed electronic records of manufacturing processes and results. Life Sciences manufacturers are facing more business pressures than ever from all sides: In addition to the ever-increasing burden of regulatory compliance overhead, manufacturers face cost reimbursement pressures and the emergence of low cost manufacturing in other regions. Although North America and Europe remain the largest markets for medical devices, manufacturing activities are increasingly being outsourced to the Asia Pacific and Latin America regions in order to reduce costs. This creates the need for effective systems to maintain control of quality and minimize the risks associated with remote production. In order to meet customer demand for personalized medicine and devices, manufacturers are faced with the complexities of mass customization. They look to automated systems to facilitate small lot sizes, higher agility and lower costs without compromising quality. For these reasons, the potential of using MES software to control manufacturing operations is widely recognized by most manufacturers, and increased deployment of MES software will be witnessed over the coming years. In reality, most companies within the medical devices industry still use paper-based manufacturing systems. As the demand for medical products increase, any increase in paperwork could add complexity in production and increase the risk of non-compliance. With rising volumes, companies cannot expect easy and fast access to data with paper-based record keeping. Hence, an MES system is a necessity to ensure compliance, efficient manufacturing and effective transmittal of the right information to the right people at the right time. Semiconductor Manufacturing The semiconductor industry has been highly successful, across the globe, in developing manufacturing technology to meet ongoing product innovation and business needs. Semiconductor manufacturing comprises fabrication, assembly and testing that involves complicated assembly lines. It requires high level of precision and coordination among the components required for manufacturing semiconductors. MES systems provide an ideal platform for manufacturers to deal with the complex manufacturing environment. This industry is global, capital-intensive, highly cyclical, and subject to boom-bust cycles. MES is predominantly used by the semiconductor manufacturing industry to enhance their ability to produce more sophisticated and quality products. Due to the adoption of stringent quality standards for manufacturing, MES plays a vital role in helping manufacturers adhere to these standards. The North American market remains the largest for semiconductor manufacturers, followed by Japan and Europe. Due to the increasing product portfolio and customers being geographically dispersed, semiconductor manufacturers will opt for the MES software to handle their manufacturing operations that are outsourced to China and Asia Pacific. The semiconductor industry was the first industry to adopt electronic manufacturing systems, and the use of MES solutions is pervasive. Semiconductor manufacturers that use legacy systems that require extensive custom code are investigating new MES platforms to provide necessary flexibility and lower overall cost of ownership. While there are MES solutions designed exclusively for the front-end, there are few options for back-end operations where unique and greater challenges emerge. The test and assembly process within the semiconductor industry is highly complex: A single piece of equipment maybe used to process many lots in different ways at the same time while product testing sorts the units into bins or grades. Some manufacturers have attempted to use a legacy MES for backend operations, and then either heavily customize it or settle for limited functionality and traceability. To them, the ideal MES can be used effectively for both the fabrication process and the complex assembly and test process. Camstar Award The recipient of Frost & Sullivans 2007 Company of the Year Award for Manufacturing Execution Systems (MES) for the medical device and semiconductor back-end industries is Camstar Systems, Inc. Camstar has differentiated itself by being one of the very few companies to operate with an unwavering 2007 Frost & Sullivan Page 3

Camstar Systems, Inc.: Recipient of the 2007 North American Manufacturing Execution Systems Company of the Year Award

focus on its core areas and to have consistently shown tremendous growth. Camstar has always understood its customers unique requirements and has consistently provided them with solutions that have driven process efficiency to higher levels. Camstars solutions are highly flexible and operate effectively in discrete, batch and hybrid processing industries. Its model uniquely supports a broad spectrum of products, including drug eluting stents, catheters, defibrillators, joint replacements, insulin pumps, diagnostic test kits, semiconductors, disk and memory storage, optoelectronics and other high tech products such as cell phones. Camstars solution is widely adopted by customers in the medical device and semiconductor industries and has emerged as the de facto standard. Buoyed by years of consistent high license and revenue growth, Camstar has further extended its lead in the above markets. With the highest customer referenceability, Camstar towers over its competitors, in terms of its large installed base and immense brand recognition. The inherent flexibility of Camstars InSite solution allows customers to meet individual plant requirements without changing program code. Camstar placed its vertical functionality on top of its core technology, which ensures that it is able to deploy its solutions rapidly and effectively in as little as four months. Camstars award-winning InSite solution leverages leading edge technologies available in the marketplace today: A Service-Oriented Architecture employing web services, a flexible data model and a configurable user interface that dramatically decreases the time and effort necessary to deploy and validate the solution. The configurability and scalability of Camstars applications allow the solution to be extended to any number of sites that are subject to customers requirements. The fact that five of the top ten companies, in both the medical device as well as semiconductor test and assembly segments, are its customers is testament to the supreme customer confidence in the companys ability to deliver innovative solutions that satisfy their needs. Camstar is widely recognized as a market innovator and trendsetter in developing solutions tailored to its customers needs. It has consistently stayed ahead of competition, by quickly identifying new trends and developing innovative solutions. Camstars Semiconductor Suite is the first enterprise MES designed specifically for Semiconductor test, assembly, and packaging operations. Historically, semiconductor manufacturers were forced to customize legacy systems to manage work in process for back-end operations. Camstars vision to create a completely out-of-the-box tailored solution for the industry resulted in superior capabilities to accurately deliver real-time relevant quality data from different sources. This innovative solution provides customers with complete process visibility across multiple sites. The highly adaptable Semiconductor Suite enables semiconductor enterprises across the globe to gain competitive advantage by responding rapidly to the dynamic nature of their consumer market by quickly implementing new products and changes to their manufacturing processes.

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Camstar Systems, Inc.: Recipient of the 2007 North American Manufacturing Execution Systems Company of the Year Award

Camstars unmatched expertise in the medical devices domain has enabled it to provide solutions in line with the customers needs. Its market leadership is reflected in its extensive industry knowledge and its ability to provide innovative solutions. Most medical device manufacturers still use paper logs to create device history records for compliance purposes. Medical device companies using paper-based records find it extremely difficult to qualitatively analyze the device records and to establish continuous improvement programs. Camstars Medical Device Suite is one of the very few solutions that provides paperless, electronic manufacturing systems. Powered by InSite, Medical Device Suite enables customers to have early visibility and detect non-conformances and address them without any delay. Implementation of Camstars solutions at leading medical device manufacturers plants resulted in the replacement of as many as 30 disparate systems, elimination of errors in the device history records, and reduction of nonconformances by 50%. Camstars highly effective combination of products and services, along with its proven implementation methodology has enabled it to consistently outperform the market. By focusing on strategic industries and by providing quality products delivered with superior execution skills, Camstar has grown at a rate higher than the market. Strategic technology partnerships with major solution providers such as SAP have demonstrated the adaptability of Camstars applications, which can seamlessly integrate with any existing software landscape. Aided by strategic integration partnerships with IBM, HP and Technology Resources Group, Camstar leverages its global presence and technical expertise to provide unparalled support to its customers. Camstar has recently opened a regional office in Shanghai, China to support its semiconductor and electronics customers and partners within the growing Asia Pacific region. Camstars continuing investment in customer satisfaction and constant innovation to improve its solutions reinforces its status as a trusted partner to manufacturers. In recognition of its dominant market share and capability to create customer value, Camstar is a worthy recipient of the 2007 Company of the Year Award for MES the medical device and semiconductor back-end industries.

About Frost & Sullivan Frost & Sullivan, a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. The foundation of this partnership approach is our Growth Partnership Services platform, whereby we provide industry research, marketing strategies, consulting and training to our clients to help grow their business. A key benefit that Frost & Sullivan brings to its clients is a global perspective on a broad range of industries, markets, technologies, econometrics, and demographics. With a client list that includes Global 1000 companies, emerging companies, as well as the investment community, Frost & Sullivan has evolved into one of the premier growth consulting companies in the world.
Frost & Sullivan Stacie Jones +1 210.247.2450 stacie.jones@frost.com www.awards.frost.com Camstar Systems Inc. Chris Parsons +1 704.227.6617 cparsons@camstar.com www.camstar.com

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