Tesco Licenses Web-enabled Software That Powers Point of Sale's ASPs, Plans Multi-Country Rollout

Business Wire, Oct 30, 2000

Business Editors

RA'ANANA, Israel--(BUSINESS WIRE)--Oct. 30, 2000

Point of Sale Limited (Nasdaq: POSI) today announced that it has finalized an agreement to provide TESCO PLC with key components of the web-based application software that powers Point of Sale's recent global Application Service Provider (ASP) initiative.

Implementing the software on its own internal server farm, Tesco will use some of the same functionality available via Point of Sale's U.S.-based ASP, StoreAlliance.com, and its Israeli-based counterpart StoreAlliance.co.il, while relying on its own resources for IT support and infrastructure maintenance to the system.

The three-year agreement allows Tesco to deploy the ASP/thin-store concept initially in more than 800 stores in the U.K., Ireland and France, and later in additional Tesco stores throughout Asia Pacific and Central Europe. The agreement also includes a corporate license for Point of Sale's soon to-be-released checkout system that runs on the Linux operating system. The Linux-based solution will support Tesco's global IT strategy for implementing and maintaining a single point-of-sale system across all its 20,000 checkout lanes in eight countries.

Point of Sale's new ASP/thin-store application operates from centrally managed server farms linked to Microsoft Windows NT and Linux-based point-of-sale systems. The internally hosted, web-enabled system uses the Microsoft Internet Explorer web browser to provide Tesco store and chain managers with 24-hour, on-line access to operational information and store-specifics, such as transaction-level data collection, electronic journal and cross-reference sales reporting.

"The Point of Sale's web-based solution allows the Tesco IT group to improve the quality of service to our customers by responding faster to changing business needs," said Philip Clarke, IT and Logistics director and a member of Tesco's main board of directors. "In addition, this should allow us to significantly reduce the cost of ownership of our store systems."

According to Point of Sale Limited president and CEO Barry Shaked, Point of Sale's strategy, in creating its web-based suite of applications, was to build a system that would cater both to small and large retailers:

"Our initial implementation of the web-based solution was focused on ASP and marketplace initiatives, with the intention of bringing leading-edge technology benefits to small chains and independent grocers," Shaked said. "Tesco's decision to adopt this web-enabled software system is evidence that our new thin-store strategy is also suitable for a world-leader in the food retailing industry."

This agreement follows a recently announced three-year contract that authorized Tesco to roll out Point of Sale's current software to any Tesco store in the world, beyond the 800-plus stores currently using the software.

About Point of Sale Limited

Point of Sale Limited, with headquarters in Israel, provides integrated enterprise-wide software solutions for the retail food industry worldwide, including supermarkets, convenience stores and restaurants. The company offers a full suite of software applications that support a food retailer's essential retailing operations and enable retailers to increase their operating efficiencies while improving customer acquisition, retention and profitability.

Recently, the company expanded its product line by offering its head and back-office applications via the Internet to small chains and single store food retailers. With installations in more than 15,000 stores across 41 countries, the company markets its software solutions through direct sales, distributors, local dealers and through its U.S. subsidiary, StorePoint, and its various other subsidiaries.

The company was founded in 1982 and its Ordinary Shares have been publicly traded on the Tel Aviv Stock Exchange since November 1994 and on the Nasdaq National Market System under the symbol "POSI" since July 1998. For further information, visit the company's websites at www.pos.co.il or www.storepoint.com or www.storealliance.com.

Safe Harbor for Forward-Looking Statements: Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, including revenues, income and expenses, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include but are not limited to Tesco's commitment to continue to install the Company's products, the amount and timing of Tesco's use of the Company's services and other factors over which Point of Sale may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed by Point of Sale with the Securities and Exchange Commission, including the Company's Annual Report on Form 20-F for the year ended Dec. 31, 1999, for a discussion of these and other important risk factors. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.