Productive Data Systems Partners with nextSource to Offer Managed Service Program

Partnership will combine nextSource's TAMS with PDS's vendor management services to provide improved control over labor management for government projects.

NEW YORK, 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, Inc., a leading provider of human capital and services spend 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 (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 countries 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 6 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.

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.

"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," said John Sculley, Chairman of the nextSource Advisory Board. "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."

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

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.

About nextSource

nextSource, Inc. is a leader in the development and implementation of workforce management solutions that address the enterprise-wide challenges associated with the sourcing and management of contingent labor, direct employee hires and deliverable-based project work. nextSource's solutions combine the latest technologies and the industry's best practices, allowing clients to streamline processes, identify and manage their spend, and mitigate risk. The PeopleTicker™, nextSource's most recent innovation, is the industry's only real-time hourly rate and salary benchmarking tool which enables users to monitor market fluctuations for their full-time and contingent workforces to determine current market rates and salary data specific to industry, geographic region, skill-set, and experience level. John Sculley, former CEO of Apple Computer and PepsiCo, Inc., is the chairman of the nextSource Advisory Board. For more information, visit http://www.nextsource.com.