Diamond Phoenix Lands Contract with Major Pharmaceutical Company

New Facility in West Chester, Ohio Will Store and Package Medication

LEWISTON, MAINE -- SEPTEMBER 20, 2007 – Diamond Phoenix today announced the award of the design contract for a major pharmaceutical company’s new packaging facility in West Chester, Ohio. This state of–of-the-art facility will be responsible for the packaging and storage of the company’s commercialized medicines.

The California based company focuses on the development and commercialization of medication for diabetes, obesity and cardiovascular disease. The West Chester facility is part of the company’s expansion plans, which are tied to the release of a new diabetes treatment.

Diamond Phoenix is working to design and implement a material handling system that meets the company’s immediate needs, with planned future growth and expansion capacity. The system will be implemented in phases, as the company’s growth demands.

This new system will support all material handling requirements from product manufacturing through packaging and shipping. The heart of the new system will be the packaging operations, which will be comprised of two Deep Lane High Rise Automatic Storage and Retrieval Systems (ASRS) - one for packaging material and a second cold ASRS for WIP and finished goods. Material transport will be accomplished via heavy duty conveyor and Automated Guided Vehicles (AGVS). Other technologies to be deployed include multi-bay vertical lift modules, automatic re-palletization, automatic stretch wrapping and auto print-and-apply labeling.

The DiamondWare™ Warehouse Execution System WES™ 3.0 will control the entire system, handling all aspects of material handling within the facility, including receiving, inventory (raw material, WIP, and finished goods), quality, transportation, staging, packaging, labeling, and shipping.

The system will go through a complete FDA validation process as part of the implementation and is scheduled for completion by September 2008.