XXXLutz: Optimal Inventories and Improved Product Availability with Teradata; Teradata Solution Automates Ordering

Business Wire, June 22, 2005

DUSSELDORF, Germany -- The Austrian furniture group XXXLutz has implemented an automated merchandise planning system developed by Teradata, a division of NCR Corporation (NYSE:NCR). This forecast-based order proposal system helps to lower inventories significantly and improves product availability in retail stores and warehouses. Due to comprehensive automation, ordering processes are more cost-efficient.

In the past, XXXLutz ordering clerks and retail store employees determined the required order quantities. Following the company's rapid expansion, this task gradually became more complex and time consuming. The new Teradata(R) solution enables XXXLutz Group employees to forecast demand based on detailed sales figures for each retail store, day and item. Seasonal fluctuations, sales promotions and price changes are automatically taken into account. In the future, only a small percentage of orders will require manual intervention by employees.

Following implementation of the Teradata system during the second quarter of 2005, orders from XXXLutz retail stores will be handled automatically beginning in September. The new software solution will be used to process orders through the main warehouse and all regional warehouses, while also managing orders from retail stores of all sale channels.

In line with the application's widespread importance for the entire XXXLutz Group, the evaluation phase was managed with utmost care, according to the company. ARBOR Management Consulting GmbH evaluated a total of ten potential suppliers before selecting three companies for a software test based on operational data. Many of the reference customers named by the potential suppliers were visited at their business sites. Among other things, the reference installations showed that ongoing support and flexibility of the Teradata solution helps reduce manpower.

"Our decision to implement the Teradata system was based on the proof-of-concept testing we conducted," said XXXLutz IT Manager Martin Schierhuber. "As one of the leading supply-chain management and ordering-system suppliers, Teradata has the expertise required to efficiently handle complex retailing demands when it comes to maintaining stock availability and reducing inventory costs. The Teradata solution also offers us a variety of options including a complete data warehouse solution and management monitoring."

About XXXLutz

XXXLutz GmbH is a privately owned business with annual revenue of 1.7 billion euros and more than 10,000 employees operating in 162 stores. In 2003, the association Europe's 500 listed XXXLutz in their annual ranking one of the top 20 most dynamic companies for being one of Europe's fastest growing businesses that manifests entrepreneurial leadership, innovation, job creation, vision and market expertise.

Since 1975 XXXLutz built and opened two furniture stores a year. 1990 - before EWR and EU - XXXLutz successfully established stores in Germany and later in the Czech Republic.

About Teradata Division

Teradata (www.teradata.com), a division of NCR Corporation (NYSE: NCR), is the global technology leader in enterprise data warehousing, analytic applications and data warehousing services. Organizations around the world rely on the power of Teradata's award-winning solutions to get a single, integrated view of their business to enhance decision-making, customer relationships and profitability.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leading global technology company helping businesses build stronger relationships with their customers. NCR's ATMs, retail systems, Teradata(R) data warehouses and IT services provide Relationship Technology(TM) solutions that maximize the value of customer interactions and help organizations create a stronger competitive position. Based in Dayton, Ohio, NCR (www.ncr.com) employs approximately 28,000 people worldwide.

NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries.