RECENT News

HRMS Acquired by VantagePoint Systems, Inc.

VantagePoint Systems, Inc. (TSX-Venture: VPG), a provider of business software and related information technology services for the packaging manufacturing industry is pleased to announce that it has completed the acquisition of HRMS Inc. (dba Harry Rohde Management Systems) of Elmhurst, IL. As a result of this transaction, VantagePoint now owns 100% of the outstanding common shares of HRMS, Inc.

HRMS will continue to operate from its headquarters in the Chicago area as a wholly-owned subsidiary of VantagePoint. All business procedures, technical support services, and customer service offerings that have been provided by HRMS in the past will remain intact. HRMS President George Plesa will continue in his position.

Privately-held HRMS, founded by Harry Rohde, is one of the original providers of software and related consulting services to the corrugated packaging industry. Rohde, who is now retired, co-owned the majority share of HRMS with his wife Libby, with the remaining shares being held by an employee stock ownership plan.

VantagePoint's software and services have traditionally been targeted primarily at larger, multi-plant packaging companies, including integrated corrugated packaging suppliers such as Georgia-Pacific, Smurfit-Stone, Menasha Packaging, MeadWestvaco, and others. VantagePoint also provides business software to folding carton manufacturers through its Retail Packaging Division, which represented about 25% of reported 2005 revenue and is expected to continue to grow.

The HRMS customer base consists primarily of entry- to mid- sized corrugated packaging companies, though in the past some of the integrated packaging companies have implemented HRMS software. HRMS also has a handful of folding carton manufacturing companies using its software.

Combined, there are nearly 700 packaging manufacturing plants who have selected either VantagePoint or HRMS software solutions in North America and internationally. "VantagePoint and HRMS, taken together, will have the largest market share in North America for business-related software directed at packaging manufacturing," explained Hennings.

Hennings continued, "Our long-term objective is to become the premier supplier of business software solutions, consulting services, and IT solutions to the paper and packaging industry. We understand this will require multiple types of software solutions and multiple levels of service offerings - it's not a 'one size fits all business.' We will achieve our goal through a combination of internal growth initiatives and strategic acquisitions."The acquisition of HRMS brings with it an established client base which is an important building block to growing revenues and increasing profitably over time."

Both VantagePoint and HRMS have an international presence and combined now have customers in the United States, Canada, Europe, Mexico, South America, Australia, New Zealand, Thailand, and Singapore. In November, VantagePoint announced that it will be directing additional resources to its Leicester, U.K., office to capture opportunities in international markets, especially in the emerging Eastern European market.

  "VantagePoint has a strategy to expand internationally. We'll be including HRMS in that plan as well," Hennings says. "The European and Latin American markets are key areas to grow our business, and HRMS already has a well-recognized presence in Spanish-speaking markets," continued Hennings.

  "To the credit of Harry and everyone at HRMS, over many years they have obtained a loyal customer following and very strong brand name recognition in the corrugated packaging industry. We're going to operate HRMS as a stand-alone business unit within VantagePoint and continue to expand its identity as HRMS," Hennings says, adding that the Elmhurst office, just outside of Chicago, "will provide VantagePoint's other business units a central location for conducting business."

HRMS founder Harry Rohde, who has been involved in the corrugated industry since the mid-1950s, has been exploring succession plans for the company over the past few years. Rohde says he decided to sell his interest in HRMS to VantagePoint because "VantagePoint has the same ethics, culture, and attitude toward customers as HRMS. It's all very positive," continued Rohde, "This acquisition will benefit HRMS staff, customers and the industry."

"As new products come on line, we'll be ramping up sales and marketing activity for HRMS specifically, and enhancing the sales effort," said Hennings. Some of the current software offerings from VantagePoint will cross over to the HRMS customer base. Both companies host customer user group meetings which will continue.

A very important and exciting news item is that VantagePoint Systems, Inc., a developer of business software solutions for the packaging industry, has completed the acquisition of HRMS, Inc.