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News ReleaseAir Products and nPhase Form Joint Venture to Offer Supply Chain Management Solutions for Chemical and Fuel Industries

January 19, 2006 Lehigh Valley, Pa.

Air Products (NYSE: APD) today announced the formation of a joint venture with nPhase, LLC, looking to capitalize on the emerging trend of using inventory management services to gain supply chain efficiencies across a broad array of industrial markets. Specifically, the joint venture will focus on the use of customized machine-to-machine (M2M) telemetry that allows remote electronic monitoring of inventory levels in tanks or other containers. Product levels are read by machine—as opposed to periodic manual readings—and transferred to a central system where such real-time data is used to automate forecasting, make production and delivery more efficient, optimize energy usage and reduce the risk of inventory depletion.

The joint venture will benefit from Air Products' industrial contacts and advanced data management capabilities. nPhase, one of the nation's leading M2M solution providers, brings customization know-how to package the remote electronic monitoring product to meet the individual needs of customers in differing industries. Potential market applications include the petrochemical industry, fuels and lubricants, agricultural and specialty chemicals, and water treatment industries.

Air Products has experience in using remote electronic monitoring services in its liquid gas bulk supply business where its customers have benefited from managing inventory this way for more than a decade. The remote monitoring package provides sensors, computer software, communications tools and the IT infrastructure to allow the user to go on-line, or into their own ERP systems, and review inventory and production operations data. From that data, production decisions are optimized and inventory levels reduced.

"We have been working with customers for over 10 years implementing automated supply chain management techniques. By knowing our customers' inventories, consumption levels and forecasted needs, we can manage their replenishment of products for them, and let our customers focus on their business," says Tom Ward, vice president of Integrated Supply Chain at Air Products. "It's convenient and the benefits to customers include significantly lower operational expenditures as well as increased service levels."

"We felt nPhase was the ideal company to collaborate with on this joint venture," said Buddy Eleazer, business manager of M2M solutions at Air Products. "By combining nPhase's leading wireless communications capabilities, IT professional services offerings, and proven ability to successfully commercialize enterprise remote management solutions with Air Products' extensive know-how, global field presence, world class technology, and financial strength, we expect to gain a leading industry position in our target markets."

"This joint venture is a perfect fit for nPhase," says Steve Pazol, CEO of nPhase and acting CEO of the joint venture. "It fully leverages our leading M2M technology platform and proven skills at marketing and selling enterprise remote management solutions, and the tremendous know-how and expertise at Air Products for providing proven supply chain management solutions that will deliver significant savings to our customers."

About Air Products

Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of $8.1 billion, operations in over 30 countries,and over 20,000 employees around the globe. For more information, visit  

About nPhase

nPhase is a recognized leader and pioneer in providing comprehensive high-value Machine-to-Machine (M2M) business solutions. M2M is about connecting widely dispersed machine or physical assets to information systems and people to extract information advantages. It is an exciting new industry predicted to exceed $100 billion by 2010. nPhase clients include Gardner Denver, Air Products, AAT Communications, Checkers Restaurants and others. Partners include Cingular Wireless, Sprint, Siemens Mobile, Wavecomm, MultiTech, and Opto 22. In 2004, nPhase was recognized by M2M Magazine as an M2M Pioneer, and was a winner of the Chicago Sun Times Innovation Award. For more info, go to  or  

NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.

For additional background information on Automating The Replenishment of Chemical Products: Innovation Through Information Age Smart Services, please visit Air Products' online Press Room at

nPhase Contacts
Dave Macey
Tel: (312) 238-9308

Steve Lundin
Tel: (312) 238-9308


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    Air Products and Chemicals, Inc.
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