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INNOVATIVE SOFTWARE FORMS WHOLLY OWNED SUBSIDIARY IN WEST GERMANY

Innovative Software Inc, Lenexa, Kansas, has formed a wholly owned subsidiary based in Munich, West Germany: Organa Innovative Software GmbH will market and support SmartWare products throughout Germany; it was formerly part of Organa AG and the Munich offices were transferred to Innovative through an asset purchase agreement and royalty pact; the Swiss offices of Organa AG are unaffected by the pact.

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