3Com Honors Winners of Fourth Annual Retail Network Innovation Awards; E-Commerce and Web Technologies Transform Business for Creative Retailers.

Business/Technology Editors

CHICAGO--(BUSINESS WIRE)--April 18, 2000

3Com Corporation (Nasdaq: COMS) today announced the winners of the fourth annual Retail Network Innovation Awards. This year's award recipients -- Garden.com, GreaterGood.com, The Home Depot, Inc. and Safeway PLC -- were honored at a dinner event in Chicago in conjunction with the Retail Systems 2000 conference here this week.

Judged by an independent panel of retail information technology professionals, the awards recognize the innovative use of networked technology to create competitive advantage and foster consumer benefit. The Retail Network Innovation Awards were established by 3Com Corporation and are co-sponsored by Telxon Corporation.

"Each of these pacesetting retailers is using networked e-commerce technologies to redefine how business is done," said David Katz, director of Global Market Development at 3Com. "Their achievements demonstrate the power of uniting the virtual and the physical worlds of retail. These Web-enabled companies are forging new ways to deliver a superior customer experience, maximize their sales channels and enhance their operations."

Web-Based E-Commerce: Garden.com (Austin, Texas)

Garden.com, a leading online destination for gardening products, information and services, is recognized for its groundbreaking virtual warehouse solution known as TRELLIS. The online retailer uses a browser-based application, a database server, the infrastructure of the Internet and a partnership with Federal Express to create a network of more than 70 suppliers capable of drop-shipping directly to Garden.com customers. Because live flowers and plants account for more than 50 percent of the retailer's inventory, Garden.com depends on TRELLIS for a distinct advantage in supplying the freshest, highest-quality product. The use of browser-based technology, low-cost workstations and a configurable application provides the flexibility to accommodate diverse suppliers ranging from volume growers to boutique manufacturers. TRELLIS also keeps customer satisfaction high with personalized order options, such as gift-wrapping, and real-time order status.

Multi-Channel E-Retailing Solution: GreaterGood.com (Seattle)

GreaterGood.com offers consumers a chance to do good every time they shop on the Web. The company builds, markets and manages online shopping villages for charitable, K-12 and collegiate partners' sites, where up to 15 percent of every purchase benefits the not-for-profit's mission. With nearly 100 brand-name retailers featured in GreaterGood.com's shopping villages, finding which retailer carries what a consumer is looking for, at what price, can be a challenge. GreaterGood.com enhances the Internet shopping experience with a unique affiliate-based product search engine that lets consumers easily search across more than 50 retailers at once. Consumers simply click on their search results to buy desired products and help the charitable cause of their choosing at the same time, without paying extra for their purchases. This Search Across Stores feature makes finding products quick and simple, and minimizes the clicks needed to complete a transaction. Unlike typical shopping search engines that use pre-determined categories, the GreaterGood.com search engine classifies products on the fly so that consumers may browse by any theme or category they define. Product information is always current because the engine dynamically searches across affiliated retailers' sites, as opposed to updating a database at periodic intervals.

In-Store Networked Solution: The Home Depot, Inc. (Atlanta)

Home-improvement leader The Home Depot is making an improvement of its own with Depot Direct, which changes the way appliances are delivered at retail. The Depot Direct system, now being deployed at stores nationwide, enables competitively priced appliances to be sent directly from a vendor's warehouse to a consumer's home within 48 hours of purchase. While assisting a customer, a store associate uses a touch-screen kiosk and a Web-based application to link to the vendor's warehouse to determine product availability in real-time. The associate then works with the customer to schedule a delivery slot, specify delivery and installation options (such as removing an old appliance) and offer an extended warranty. The application automatically places the order into the appliance vendor's computer system and confirms the delivery reservation through the Internet. Store associates, appliance vendors and delivery agents have real-time access to the order feed and view. By bringing e-commerce fulfillment to retail appliance sales, The Home Depot offers greater convenience and more selection to customers while reducing its own inventory expenses and handling costs.

Internet-Based Store Management: The Home Depot, Inc. (Atlanta)

Manual reporting of store performance information is a thing of the past at The Home Depot, thanks to the retail chain's Virtual District Office system. The reach and flexibility of Web-based technologies bring timely reporting to any location where a field manager plugs in a laptop computer -- office, store or home. Not only does the Virtual District Office eliminate hours of laborious data gathering and analysis, the system also provides graphical reports that alert field managers to opportunities or issues. Field managers have more time available to spend in stores, so more attention can be focused on essential areas such as store staffing, in-stock levels, customer satisfaction and merchandise presentation. The Virtual District Office is designed to serve the requirements of a distributed and growing user base, particularly field managers who find the system easy to use. Support costs are reduced through the use of standard Web technologies and application support that takes place from a central location.

E-Retailing: Safeway Stores PLC (UK)

Safeway, one of the leading grocery retailers in the UK, launched the first personalized remote shopping service in February 1999. The Safeway Easi-order service provides each customer with a specially adapted Palm(TM) handheld computer loaded with a personalized shopping list based on approximately five months' shopping. A customer then selects items from the list for that particular order by pressing an icon on the handheld's touch screen, or uses the unit's built-in barcode reader to scan items already on the pantry shelf. When ready to order, the customer simply attaches the handheld to a phone line to transmit the information over the Internet. Groceries are ready for pick up at Safeway at the requested time. Safeway greatly increases customer convenience by using a unique purchase history compiled from the shopper's loyalty card, and provides special offers and promotions tailored to each person. In addition, in-store staff have information to serve individual shopper preferences that can be detailed as "only very ripe tomatoes, please." Safeway's Easi-order has also increased customer loyalty and raised the average amount spent per order.

Independent Panel of Retail Executives Chooses Winners

Winning entries are selected by a panel of information technology executives with extensive experience in networked applications for the retail industry. This year's judges are:

Rick Dalzell, chief information officer, Amazon.com, Inc. (Seattle)

Dave Ellis, vice president of IS, The Home Depot, Inc. (Atlanta)

Kerry Fogarty, director of application development, Liz Claiborne Inc. (New York)

Mike Frank, vice president corporate services, quality and client services, Target Corporation (Minneapolis)

Elisabeth King, vice president retail business systems, Starbucks Coffee Company (Seattle)

Bob Meltzer, chief technology officer and senior vice president, Kinko's, Inc. (Ventura, Calif.)

Jerry Miller, senior vice president and chief information officer, Sears, Roebuck and Co. (Hoffman Estates, Ill.)

Jon Nordeen, corporate vice president of IS and chief information officer, Spiegel, Inc. (Downers Grove, Ill.)

Jeannine Ralston, director, MIS, The Limited, Inc. (Columbus, Ohio)

About 3Com Corporation

With more than 300 million customer connections worldwide, 3Com Corporation connects more people and organizations to information and each other in more innovative, simple and reliable ways than any other networking company. 3Com delivers web-enabled solutions to consumers, small- to medium-sized business locations and network service providers. For more information, visit 3Com's web site at www.3com.com/pressbox.

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