"Connected Payments" Program from StoreNext and MTXEPS To Cut Electronic Payments Costs.

New Advanced Technology System Slashes Technology and Transaction Expenses for Independent Grocers

PLANO, Texas -- StoreNext Retail Technologies LLC, a subsidiary of Retalix Ltd. (NASDAQ: RTLX), and MTXEPS have partnered to bring a welcome ray of light to independent grocers' struggle to survive ever-increasing electronic payment costs. Announced today at the FMI Show + MARKETECHNICS in Chicago, "Connected Payments[TM]" provides an array of features designed to cut merchants' payments expenses by up to 25 percent - or more. Connected Payments also eliminates most up-front costs - including payments software licenses - with StoreNext's ISS45 and ScanMaster point-of-sale systems.

"Connected Payments is a breakthrough program aimed squarely at the number one problem facing our customers," said Ray Carlin, StoreNext president and CEO. "Electronic payments interchange and processing fees often exceed independent and regional chain profit margins, and since these grocers are our single focus, their challenges are our challenges. StoreNext is stepping up with a revolutionary combination of new partnerships and a payments architecture that strips out layers of expense and drives electronic payment costs to the minimum."

The up-front investment for payment system upgrades has frozen most independents with uncompetitive costs for electronic transactions as well as cumbersome checkout procedures. Instead, independents now can replace their payments systems free of software license charges and maintenance fees, including the WinEPS payment system and related point-of-sale interfaces and options for ScanMaster and ISS45 point-of-sale systems. Grocers can achieve immediate payback since Connected Payments replaces these start-up expenses with a low-priced subscription.

Several of the industry's most important payment processors are partnering with StoreNext and MTXEPS to provide improved processing rates on debit, credit, EBT and other payment options to Connected Payments subscribers. New cost-cutting services such as electronic check conversion and Pay By Touch biometric payments will be supported, as well as gift card capabilities for profit enhancement. To accelerate the savings, Connected Payments Processor Partners will transfer current processing merchants to Connected Payments without early conversion penalties or fees to the grocer.

"The sophisticated technology in the Connected Payments engine puts the full menu of new payment types within easy reach, while lowering the cost of traditional payment processing," said Jonathon Elwood, president of MTXEPS. "Even grocers whose processors can only support limited payment options can now supplement them with other services while keeping consistent reporting - exactly as they want to see it - across the board."

All traditional WinEPS features such as redundant payments, automated dial backup, off-line management, automatic tender resolution and other options are also supported with Connected Payments. However, Connected Payments adds new powerful capabilities, enabling merchants to report, balance, and reconcile processor invoices faster and more accurately than before. Connected Payments users also can customize system reports or create new ones using standard Microsoft reporting tools. Multiple stores can be grouped, ungrouped or consolidated for statistics, reporting and analysis without the growing cost burden and liabilities of an in-house payments switch.

"So for example," said Elwood, "tracking credit-to-debit conversion success rates or researching and resolving customer or processor issues now becomes remarkably easy. Many regional chains are facing six-figure annual expenses just for PCI compliance audits and remediation -- Connected Payments off-loads all these technology compliance costs while providing much greater capability than internal switches."

Connected Payments also supports automated Bank Identification Number (BIN) management for credit-to-debit conversion as well as centralized signature capture storage and retrieval. Since Connected Payments supports standard broadband connections, the high infrastructure costs of leased lines or satellite communications also can be significantly reduced.

"Several major grocery wholesalers have created payment programs on behalf of their member stores," said Carlin. "Our intention is to help wholesalers make these programs even more attractive with Connected Payments' unique ability to remove cost, support and maintenance obstacles to success. In the coming weeks, we will be working with our wholesaler partners to put Connected Payments' capabilities and advantages at their service and to the service of their independent store members."

About MTXEPS

MTXEPS is a privately held company based in California, which markets its products directly and through reseller channels. The WinEPS software product has gained over 8,500 installations in its ten-year life and provides the highest level of features and stability available. MTXEPS payment solutions are tightly integrated with StoreNext's ISS45 and ScanMaster POS solutions, as well as PIN pads from Verifone, Hypercom and Ingenico.

Web site: www.MTXEPS.com.

About StoreNext

StoreNext Retail Technologies LLC is the No. 1 supplier of retail technology to independent grocers and regional chains. Based in Plano, Texas, StoreNext is a joint venture of Retalix Ltd. (NASDAQ: RTLX) and Fujitsu Transaction Solutions Inc. and markets Fujitsu POS hardware, Retalix's ISS45 and ScanMaster POS software, Retalix Store and RBO back office systems as well as Internet Connected Services for managing stores via Web-enabled applications. StoreNext is the IT company exclusively dedicated to meeting the needs of this wholesaler-served market with packaged solutions that were previously available, affordable or practical only for large chains.

Web site: www.storenext.com.

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