Ace Hardware Upgrades the Connect3 Promotions Planning System to Streamline Targeted Advertising Strategy for Local Markets.

Business Editors/High-Tech Writers

National Retail Federation's 91st Annual Convention and EXPO

Booth No. 1535

NEW YORK--(BUSINESS WIRE)--Jan. 16, 2002

Over 5,000 Participating Ace Stores Now Have Access to

Internet-Based Tool for Targeted Advertising and Promotions

Connect3 Systems, Inc., (NRF Booth No. 1535) the leading provider of versioned promotion solutions, announced today at the National Retail Federation's 91st Annual Convention and EXPO, they have completed the installation and integration of the new Connect3 iPlanner Module with the existing Connect3 system at Ace Hardware. Ace Hardware, a retailer-owned cooperative located in Oak Brook, IL, is now able to distribute upcoming promotions to their participating member retailers over the internet and allow them to make revisions to their local ads using a simple, browser-based interface.

Colleen Donahugh, Print Production Manager for Ace Hardware, says iPlanner has become a critical tool for Ace retailers to use in their advertising efforts and is a competitive advantage that none of the other hardware cooperatives offer their member retailers. "Prior to implementing the Connect3 iPlanner module, we had to coordinate local changes from over 5,000 Ace retailers member using manual and time-consuming methods in building their weekly advertising circulars. Now, with iPlanner, we've made a big leap forward in productivity by putting a browser-based tool in the hands of Ace retailers who can now increase their local market competitiveness by meeting the needs of their targeted consumers."

According to Dale Byrne, President & CEO of Connect3, "Ace Hardware is a long-time customer who saw the need to extend Connect3's workflow out to their retailers' local PC's. By adding iPlanner capabilities to their existing intranet, Connect3's versioning capabilities can now reach every Ace member, allowing them to better apply their local market knowledge and create a more regionally compelling product circular." Byrne went on to say, "Since Connect3 has a number of customers in this market segment already, we feel this is the tip of the iceberg in terms of this type of capability. We look forward to continuing our partnership with Ace to enhance this technology as part of the ongoing iPlanner development program."

About Ace Hardware

Ace Hardware Corporation is a cooperative of more than 5,000 independent retail stores in 68 countries with annual retail sales of $13 billion. Ace is committed to providing low upfront costs on merchandise purchased by Ace retailers from 16 strategically located Ace Hardware retail support centers in North America or through Ace's drop ship and bulletin programs. Retailers are supported by over 60,000 brand name and Ace Brand items, a comprehensive advertising program, sophisticated retail support systems, and headquarters and field staff personnel. More information on Ace can be found at www.acehardware.com.

About Connect3 Systems

Connect3 Systems, Inc. is the leading provider of versioned promotion solutions that allow retailers and catalogers across all industry segments to compress the promotions cycle, reuse existing digital media, and version their item message to increase accuracy, efficiency, and profitability. The Connect3 VELOCITY Performance Series is a collaborative environment where buyers, merchandising managers, copywriters and graphic artists create and manage digital assets and content, plan, build and version promotional events, and publish the completed flyer, catalog, or web content.

Connect3 customers include Best Buy, The Home Depot, Ace Hardware, The Sports Authority, Stop & Shop Supermarkets, and other leading merchants. Resellers and Technology Partners include IBM Global Services, Nurun (a division of Quebecor, Inc.), Quark, Xinet, and others. Connect3 is located in Cerritos, Calif. and can be reached by email at [e-mail] or by telephone at 562/741-0380.