Monday September 16, 8:34 am ET

Productive Data Systems Inc. Partners with nextSource Inc. to Offer Managed Service Program

NEW YORK--(BUSINESS WIRE)--Sept. 16, 2002--Production Data Systems, Inc. (PDS), one of the country's top privately held SBA certified Minority, Veteran and SDB technology services firms, has entered into a partnership agreement with nextSource, a wholly owned subsidiary of Formula Systems (1985) LTD (NASDAQ: FORTY - News) and a leading provider of human capital management solutions, to offer PDS' clients an innovative vendor management service that will allow them increased control over contingent and direct labor costs and will assist them in obtaining more competitive rates.

Under the agreement, Productive Data Systems will use nextSource's Talent Acquisition Management Solution(TM) (TAMS) software in conjunction with PDS' newest service - Managed Services (Vendor Management Systems) - to provide the most unique program in the industry, designed around the US Government initiative of privatizing the Small Business Administration.

The PDS Managed Services program will pick up where the SBA has left off, allowing Federal Contractors and Commercial organizations the ability to benefit from a program that is backed by some of the country's top Senate and Congressional leaders. Organizations can now allocate their SBA spend or initiatives to a certified Minority (Hispanic), Veteran and Small Disadvantaged Business that actually has a program attached to its Managed Services offering designed to allow other SBA Certified organizations a chance to compete fairly against its much larger competitors on bundled contracts by providing back end support (HR, Health, Finance, Mentorship, etc.) unseen to this point.

"The Human Capital Procurement Technology space is growing almost daily, so our due diligence process in evaluating the players over a six month period was intensive," said Scott Aicher, Chief Operating Officer at Productive Data Systems Inc. "It was extremely important that we form a technology partnership with an organization that has the same values, commitment, and work ethic combined with a technology, that is unlike the traditional front-end systems in the market today. PDS has found such a partnership with nextSource. Their commitment, leadership, vision, flexibility, and technology are the most advanced in the HCM space. We are very excited about this relationship, focusing on a unique solution unlike any other in the Managed Services arena."

The nextSource TAMS 4th generation web-based software while modular, scalable, and secure, is comprised of Sourcing, Procurement, and Accounting functionality that allows clients to monitor and control either departmentally or corporate wide, their workforce, vendor base and related spend. With the PDS program and a technology front end that is the most advanced in the HCM space provided by nextSource, the benefits are unlimited.

"This is an excellent opportunity for nextSource to extend its brand by building on the existing relationship that PDS has developed over the years with its clients. In addition, nextSource is pleased to support PDS in their efforts to more fully engage the small business community that is such a vital component of our economy. The collaboration with nextSource supports PDS' efforts in developing new business opportunities for the small business community while enabling PDS to compete in a market that puts an increasing premium on the ability to offer a vendor management solution," said John Sculley, Chairman of the nextSource Advisory Board.

For more information on TAMS, please check out www.nextsource.com or email your inquiry to info@nextsource.com.

About nextSource
nextSource, headquartered in New York City is a subsidiary of Formula Systems LTD. The company designs, develops and implements web-based, high quality, innovative Human Capital Management Solutions. Through The People Blue Book(TM), these offerings allow customers to manage the business processes of job posting and fulfillment, vendor selection, evaluation, and management; accrual of spend; MWDVBE compliance; skill set and market-rate benchmarking. An Oracle and Microsoft Certified Partner, nextSource has patents pending on both its Talent Acquisition Management Solution (TAMS) and The People Ticker(TM).

Founded in 1985, Formula Systems (1985) LTD (NASDAQ: FORTY - News) is an international Information Technology company, principally engaged through its subsidiaries and affiliates, in providing proprietary software products, computer based solutions and software consulting services.

About Productive Data Systems Inc.
Productive Data Systems, Inc. (www.pdsinc.com), a privately held organization with its headquarters in Denver, Colorado is a SBA certified technology services firm specializing in Staff Augmentation, Permanent Placement, Managed Services, Consulting, Integration Solutions, and its PDS trademarked software products nationwide. Since 1987, PDS has supported some of the country's top employers within both the federal (secured or civilian) and commercial environments across the United States.

The PDS Managed Services program is the most unique offering in the Vendor Management Systems industry and supported by some of the country's most influential leaders. This program is an answer to both Federal and Commercial organizations SBA initiatives.

Contact:
nextSource, New York
Ed Remus, 212/736-5870
eremus@nextsource.com
or
Kate Rudgers, 212/736-5870
krudgers@nextsource.com