AFS Technologies, Inc. Completes the Acquisitions of IRM Corporation and Motek Information Systems, Inc.

PHOENIX, AZ – August 29, 2008 – AFS Technologies, Inc. (“AFS”), a leading provider of software solutions to the food and beverage industries, announced today that it has completed the acquisition of IRM Corporation (“IRM”), a Dallas, TX-based leading provider of both on-demand and on-premises business intelligence, forecasting and trade promotion management solutions to manufacturers, distributors and brokers in the food, beverage, and CPG industries, all delivered in the Software-as-a-Service (SaaS) model.

AFS also announced today that it has completed the acquisition of Motek Information Systems, Inc. (“Motek”), a Beverly Hills, CA-based technology leader in the warehouse management systems (WMS) and Third Party Warehouse (3PL) market. Motek is a leader in WMS systems that utilize voice recognition and wireless mobile data terminals. Motek’s customer base includes companies such as Associated Grocers, Federated Co-op, Four Seasons Produce, and Southern Company.

With the acquisitions of IRM and Motek, AFS now serves over 750 customers operating within the manufacturing, processing, and distribution segments of the food and beverage industries. AFS will employ over 150 professionals and will be headquartered in Phoenix, AZ with offices in CA, CT, FL, TX, and Bangalore, India.

“I am very pleased with the acquisitions of IRM and Motek. The integration of business intelligence (BI) into AFS’ Order Management solutions, and eventually into other AFS solutions, on a SaaS basis, should enhance AFS’ overall product value to our existing customers. In addition, not only does IRM’s customer base expand the market potential for all of AFS’ solutions into the food manufacturing space, but also Motek’s customer base allows AFS to introduce its technology into markets beyond food and beverage,”
said Kurien Jacob, CEO of AFS.

AFS also announced today that it has closed a $13.0 million equity financing, led by CIBC Capital Partners, which is responsible for all of the principal investing activities of CIBC World Markets on a global basis. The Venture Group, part of CIBC World Markets Capital Partners division, is one of the largest and most experienced venture groups in North America. Ticonderoga Capital, an existing investor, also participated in the equity financing.

“CIBC Capital Partners is extremely pleased to have the opportunity to support the growth of AFS,” said Alexis Boyle, Executive Director, CIBC Capital Partners, Venture Group. “We believe the company has an excellent management team and outstanding technology, and thus, a great opportunity to become the dominant player in its markets. We are looking forward to partnering with AFS management to continue to successfully build the company.”

AFS also announced today that it had closed a $25 million credit facility arranged by Wells Fargo Foothill, part of Wells Fargo & Company (NYSE:WFC). A portion of the $38 million of total proceeds was used to finance the acquisitions of IRM and Motek and retire outstanding mezzanine debt, with the remaining amount to be used for possible further acquisitions.

“I am excited to have been able to secure the partnership and financial support of CIBC Capital Partners and Wells Fargo Foothill, two leading, global financial institutions. Their support and expertise building software companies will be extremely critical to the successful growth of AFS. I’m looking forward to working with Wells Fargo Foothill’s Technology Finance team to continue to build a world class organization,” said Kurien Jacob.

Concurrently with the closing of the above transactions, Alexis Boyle, Executive Director of CIBC Capital Partners – Venture Group, and David Butler, President of Ticketmaster-Irvine (fka Paciolan, Inc.), have joined the Board of Directors of AFS.

“With the financial support of CIBC Capital Partners and Wells Fargo Foothill, coupled with AFS’s state-ofthe-art technology platform, AFS now has the technology, the scale and profitability to continue to successfully consolidate industry providers, and emerge as the premier, leading provider of software solutions to the food and beverage industries,” said Walter Barandiaran, Chairman of AFS and a Managing Partner of Argentum.

About AFS Technologies, Inc.

AFS Technologies Inc. is the leading provider of software solutions for the food and beverage industry. The company serves over 750 customers across North America and the Caribbean with solutions designed to reduce costs, increase efficiency, increase sales and margins, streamline internal processes and assist in regulatory compliances. AFS offers the industries only complete end-to-end software suite utilizing service oriented architecture (SOA) and the Microsoft .NET framework. This unique modularly designed system offers solutions for Distribution, Sales & Marketing, Financials, Processing, Warehouse Management, Transportation, and Database Services featuring the industry’s largest database of product information and recipes, the PROFILE Database. For more information, please contact AFS Technologies via email at info@afsi.com, by phone at (602) 522-8282 or visit us on the web at www.afsi.com

About IRM Corporation

IRM provides both on-demand and on-premise business intelligence, forecasting and trade promotion management solutions to manufacturers, distributors and brokers in the food, beverage, and CPG industry – – all delivered in a Software-as-a-Service (SaaS) model. For more information, please visit: www.irmcorporation.com

About Motek Information Systems, Inc.

Founded in 1991, Motek is an established, profitable software company that is a technology leader in the Warehouse Management Systems (WMS) market. Motek’s success can be attributed to three specific factors that differentiate Motek from others in this space: scalable product, process, and support. For more information, please visit: www.motek.com

About CIBC Capital Partners

Founded in 1989, CIBC Capital Partners is responsible for all of the principal investing activities of CIBC World Markets on a global basis. CIBC Capital Partners manages numerous investment portfolios with total committed funds in excess of CAD$5.4 billion and investments in over 250 companies and approximately 150 third party funds. CIBC Capital Partners make both direct investments and fund investments across diverse industries, geographies and stages of development. Since 1989, CIBC has provided private equity, mezzanine and bridge financing to create, grow and recapitalize companies in North America, Europe and Australia. CIBC Capital Partners – Venture Group is one of the largest and most experienced venture groups in North America. Focusing on growth-oriented businesses in dynamic industries, the Venture Group looks to help founders and management teams take their company to the next level. The Venture Group is part of CIBC World Markets’ Capital Partners Division, alongside the merchant banking and private equity funds. For more information, please visit: www.cibcwm.com

About Wells Fargo Foothill

Wells Fargo Foothill is a leading provider of senior secured financing to middle-market companies across the United States and Canada, offering flexible, innovative credit facilities from $10 million to $1 billion and more. It is part of Wells Fargo & Company, a diversified financial services company with $609 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from almost 6,000 stores and the Internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of two banks worldwide, to have the highest possible credit rating from both Moody’s Investors Service, “Aaa,” and Standard & Poor’s Ratings Services, “AAA.” For more information, visit Wells Fargo Foothill on the Internet at www.wellsfargofoothill.com

About Ticonderoga Capital

Ticonderoga invests in later stage business process outsourcing, healthcare business services and software as a service (SaaS) firms. It focuses upon companies with sustained revenue and proven gross margins. Ticonderoga seeks growth businesses, which have achieved a balance between sustainable growth and expense control. Its capital is typically used to accelerate revenue growth, make acquisitions, or provide liquidity to founders and existing shareholders. Ticonderoga is often the lead and first institutional
investor, but also participates as a member of larger syndicates with other respected investment groups. Furthermore, Ticonderoga is often a minority investor thus it views its relationship with management crucial to its success. Therefore, its objective is to create long-term partnerships with exceptional management teams who are building growth businesses and require Ticonderoga’s experience, knowledge, contacts and capital to maximize their success. For more information, please visit: www.ticonderogacap.com

About The Argentum Group

The Argentum Group is a New York-based private equity firm that provides expansion capital to rapidly growing small and mid-sized businesses with market leading potential. Argentum targets those industries experiencing rapid growth or undergoing fundamental change in the areas of business services, healthcare, software/SaaS, and clean (environmental) technologies/services. Argentum serves as general partner of investment partnerships with over $400 million of capital under management. Since its founding in 1988 Argentum has invested in over 100 companies across a broad range of industries. For more information, please visit: www.argentumgroup.com

Media Contact:
AFS Technologies, Inc.
Kurien Jacob
Chief Executive Officer
(602) 443-4222
kurienj@afsi.com