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Lawson Reports 100-Day Progress on Journey to Transform Business Application Software Industry

Highlights include news sales, services structure and
client-driven product roadmap

ST. PAUL, Minn.--(BUSINESS WIRE)--Nov. 11, 2004--Lawson Software (Nasdaq:LWSN) today said it has successfully completed the first 100 days of its 1,000-day journey to change the business application software industry and deliver a vastly superior experience to Lawson's clients. To begin meeting that challenge, Lawson has simplified the structure of the company and strengthened its focus on key products and services.

"Last spring we noted that more than 75 percent of the customers of the three largest ERP vendors would prefer to switch to a different vendor if they had to rely on a single provider," said Lawson President and CEO Jay Coughlan. "On June 1, we began the process of transforming Lawson into a company that consistently fulfills the promises set forth in our 'Manifesto for Change in Business Application Software' to serve our clients differently. After 100 days, we're off to a strong start, and our clients are already starting to see a difference."

A recently completed TNS Prognostics survey of more than 900 Lawson clients found nearly a third of respondents already say Lawson's performance has improved over the past year. The Manifesto initiatives are designed to further improve on that measurement.

The initiatives are organized into four categories - client, product, people and brand. All the initiatives share the goal of strengthening Lawson's position in the marketplace by focusing investments and resources on deepening client loyalty, delivering quality products that clients need and want, and staying focused on Lawson's vertical markets.

In June, Coughlan said the first step in delivering on the Manifesto promises would be a new organizational structure aligned to sharpen Lawson's focus on clients. Lawson has since created a simplified, centralized structure for clearer accountabilities and greater operating effectiveness. The new model provides a single product development and management organization, a single sales organization and a single services organization - each under the direction of an executive reporting to Coughlan. The new model also supports a stronger focus on Lawson's three revenue sources: license fees, maintenance and consulting services.

Among Lawson's Product initiatives, the company has refined its 12-month product schedule and has nearly completed a three-year client-driven product roadmap that strengthens the company's core offerings in Human Resources, Financials and Procurement - currently used by more than 2,000 clients. Lawson will also extend the value of those core suites by enhancing its Enterprise Performance Management suite and several add-on applications such as the recently launched Receiving and Delivery, part of Supply Chain Management for Healthcare.

As part of the Client initiatives, Lawson has hired new executive vice president of services Brad Callahan, who joined the company last week from Capgemini. The company has also created a process called the Seamless Account Transition (SAT) that will help facilitate consistent client service from pre-sales through post-implementation. The system is in production and user training is underway.

During the next 100 days, ending in March 2005, Lawson will continue its focus on initiatives tied to the Manifesto. Specifically, the company will accelerate the consulting services transformation under Callahan's leadership and implement the three-year product roadmap. Lawson will also launch targeted marketing campaigns strengthen the company's position in its vertical markets and will focus further on demonstrating how Lawson clients realize value from its applications and services.

About Lawson Software

Lawson Software provides business application software and consulting services that put time on the side of services organizations in the healthcare, retail, government and education, banking and insurance and other markets. Lawson's software suites include enterprise performance management, distribution, financials, human resources, procurement, retail operations and service process optimization. Headquartered in St. Paul, Minn., Lawson has offices and affiliates serving North and South America, Europe, and Africa.

Forward-Looking Statements

This press release contains forward-looking statements that contain risks and uncertainties. These forward-looking statements contain statements of intent, belief or current expectations of Lawson Software, Inc., and its management. Such forward-looking statements are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company's ability to enhance operating effectiveness and profitability requires that the company obtain cost savings from expense control measures that have not yet been fully determined. The company is not obligated to update forward-looking statements based on circumstances or events that occur in the future. In addition to factors discussed above, risks and uncertainties that may cause such differences include but are not limited to: uncertainties in the software industry; global military conflicts; terrorist attacks in the United States, and any future events in response to these developments; changes in conditions in the company's targeted service industries; increased competition and other risk factors listed in the company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and as included in other documents the company files from time to time with the Commission.

CONTACT: Lawson Software, St. Paul
Terry Blake, 651-767-4766
terry.blake@lawson.com
or
Weber Shandwick
Aaron Pearson, 952-346-6217
apearson@webershandwick.com

SOURCE: Lawson Software