SIMSCI announces acquisition/ development agreement with Shell
BREA, Calif.--(BUSINESS WIRE)--June 5, 1997--
Companies expand alliance to develop next generation enterprise
optimization system
Simulation Sciences Inc. (NASDAQ:SMCI)(SIMSCI) Thursday announced an agreement to integrate Shell Oil Co.'s business
planning and process control software with SIMSCI's ROMeo modeling platform to create a next generation enterprise
optimization system for the process industry.
Under terms of the agreement, SIMSCI will acquire PROFIT, Shell Oil's business planning software for a one-time payment of
$1.5 million. SIMSCI will also make an initial $1 million payment for certain exclusive worldwide marketing rights and the right
to purchase Shell's advanced multivariable process control tools.
The agreement provides optimization and advanced process control resources from Shell to assist in the development of the
enterprise optimization system and the implementation of advanced process control projects for SIMSCI clients.
Paul L. Cuneo, director of technology for Shell Oil Products Co. (SOPC), said, ``SIMSCI has demonstrated to us their ability
to develop and implement best-in-class software applications for the process industry.
``We are convinced that combining Shell's innovative planning and advanced process control technology with SIMSCI's
simulation and optimization technology will increase our ability to deploy more effective solutions at Shell to improve operating
efficiencies.''
``Since the early 1970s, Shell has been developing and implementing business planning, process control and optimization
technology,'' continued Cuneo. ``In fact, in the United States alone, we have approximately 500 advanced process control
applications currently executing on-line that use this proven technology. Industry analysts continue to tell us that Shell is a leader
in the application of these technologies in refineries around the world.''
Charles R. Harris, president and chief executive officer of SIMSCI, said, ``This agreement enhances SIMSCI's competitive
position in providing on-line applications and expands our suite of powerful solutions for the industry. We are focused on
developing effective systems that provide the models and information required to make more informed decisions on how to run
the business to maximize profits.
``With today's advances in software technology and computing power, we now have the right tools to expand the use of
rigorous, first principles modeling from unit control and optimization to enterprise-wide business applications, providing a
consistent optimization solution built on common modeling technology.''
Advanced Multivariable Control Technology
Shell's advanced process control tools include QDMC, a state-of-the-art, field-proven multivariable controller that is used
on-line to overcome process disturbances, predict future performance and determine the adjustments required to keep the
process controlled within certain limits.
In addition, Shell's control tools include advanced design algorithms to improve the accuracy, implementation and maintenance
of multivariable controllers. According to independent market research, Shell is a world leader in implementation, use and
maintenance of advanced process control and optimization systems.
PROFIT
PROFIT is a proven planning system currently in use at multiple Shell refineries. It provides business managers with information
designed to increase operating profits throughout a refinery and across multiple refineries. PROFIT provides simulation-based
decision support to operating managers by selecting optimal product manufacturing plans, including product selection,
intermediates staging and feedstock procurement.
ROMeo
The development of the ROMeo platform began last year with the formation of a joint development team by SIMSCI and
Shell. ROMeo is designed to enable engineers and management to model process units and optimize operations on a
plant-wide basis.
Using real-time data and current economic objectives, the system is designed to provide a real-world model of the actual
operating facility, calculate new process setpoints to achieve optimum performance and help determine the location and cause
of operating problems.
Based in Houston, Shell Oil Product Co. is a subsidiary of Shell Oil Co. For more information about Shell, visit the Shell Oil
Co. Web site at shellus.com .
Simulation Sciences Inc. is a leading provider of commercial simulation software and related services to the petroleum,
petrochemical and industrial chemical process industries as well as the engineering and construction firms that support those
industries.
SIMSCI's Windows-based graphical user interface and simulation software products are designed to increase profitability by
reducing capital investment costs, improving yields and enhancing management decision making.
SIMSCI maintains offices in the United States, Venezuela, Brazil, Egypt, Germany, Singapore, the United Kingdom and Japan,
and provides support and service to more than 500 customers in 70 countries. For more information about SIMSCI, visit the
SIMSCI Web site at simsci.com .
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the planned
transaction, development of software products and the effectiveness of any products that are developed.
Actual results could differ materially as a result of a number of factors, including failure to complete the transaction, difficulty in
assimilating the Shell technology, disruption of the company's ongoing business, technical difficulties that prevent completion of
new products or limit their effectiveness, additional unanticipated expenses associated with the transaction and impairment of
relationships with employees and customers as a result of the transaction.
There can be no assurance that any new product will achieve market acceptance or result in significant revenue or earnings for
the company. There also can be no assurance that the company will be successful in resolving such issues or other problems
encountered in connection with the transaction.
For additional discussion of factors which could materially adversely affect the company, see the company's most recent Form
10-K, 10-Q filings with the Securities and Exchange Commission. |
