Road Runner Sports Races Ahead With Newgistics' Customer Friendly Returns Program; The World's Largest Running Store! Uses SmartLabel to Provide Convenient Returns for Catalog and Online Shoppers

Business Wire, June 6, 2005

AUSTIN, Texas -- Newgistics, Inc., the leader in returns management solutions for retailers and technology companies, today announced that Road Runner Sports(R), the world's largest seller of top brand name running shoes, apparel, gear and accessories, has chosen Newgistics' SmartLabel(R) to provide a convenient and hassle-free returns process for their catalog and online shoppers. Newgistics' suite of Intelligent Returns Management (IRM) solutions will enable seamless merchandise returns for Road Runner Sports' multi-channel product offerings.

A rapidly growing multi-channel retailer with a 22 year history of providing top quality products at competitive prices, Road Runner Sports owns and operates several branded running and fitness catalogs, corresponding shopping websites and retail stores on the West Coast. Road Runner Sports' decision to provide customers with the SmartLabel system for easy and convenient returns supports the company's mission to enhance the shopping experience for its cross-channel customers.

After evaluating several returns management solutions, Road Runner Sports selected SmartLabel as their preferred returns method because it offers shoppers the most convenience. With SmartLabel there is no need for a customer to travel to a postal center, weigh a package or wait in line to make a return. Customers simply detach the pre-paid, pre-addressed, bar-coded SmartLabel from their purchase invoice, affix it to their package and drop it anyplace the U.S. Postal Service (USPS) picks up mail, including their home or office.

Immediately upon scanning, SmartLabel's dynamic barcode links the package to the customer's invoice and provides package visibility early in the returns process, enabling customer service representatives to proactively address customers' exchange or credit needs, resulting in increased customer satisfaction and loyalty. Customers can also track their return by visiting the online SmartLabel Returns Center via the Road Runner Sports' Web site and typing in the SmartLabel tracking ID number found on their original order invoice.

"Customers rely on us to provide an easy and convenient end-to-end shopping experience, and returns are just as much a part of that process as the original purchase," said Jennifer Melzer, Road Runner Sports' customer care manager. "Newgistics' SmartLabel is the most convenient returns option that we can offer our customers. With advance notification from Newgistics of what is being returned and when, we are able to provide our customers with e-mail updates to inform them about the status of their return and we can track that process step-by-step, from the time they place their package in the mail until we credit their account."

"Road Runner Sports' decision to offer the convenience of SmartLabel to their customers illustrates an unyielding commitment to enhance the customer experience," said Bill Razzouk, CEO of Newgistics. "Newgistics is dedicated to continuing the development of Intelligent Returns Management solutions to help leading multi-channel retailers, like Road Runner Sports, increase their visibility in the reverse and build shopper loyalty."

According to a recent survey conducted by Harris Interactive and commissioned by Newgistics, an easy and convenient returns process heavily impacts customer loyalty. Ninety-two percent of consumers surveyed reported being likely to shop with an online or catalog retailer again if the return process is convenient. In the same survey 85 percent of consumers stated they would not be likely to shop again with a catalog or online retailer that has an inconvenient return process.

Newgistics' Intelligent Returns Management suite of services begins at the point-of-sale. SmartLabel's dynamic barcode is integrated with the original order summary, and services can include optimized transportation, Advance Return Notification(SM), customized tracking and reporting, processing and disposition, returns related marketing and customer loyalty programs.

About Road Runner Sports

Road Runner Sports, The World's Largest Running Store! was founded in 1983. For over 22 years, Road Runner Sports has been the #1 multi-channel seller of top name brand running shoes, apparel, gear and accessories for your running and active lifestyle. Visit us at www.roadrunnersports.com.

About Newgistics

Newgistics, Inc. (www.newgistics.com) is the leader in returns management solutions for the direct retail and service parts industries. Newgistics' patent-pending Intelligent Returns Management(SM) solution delivers the most convenience for customers while maximizing control of the returns process for retailers and technology companies. Newgistics' SmartLabel(R) drives customer loyalty and increases profitability for leading companies like Neiman Marcus, J.Crew, Eddie Bauer and Abercrombie & Fitch.