Albertsons Joins UCCnet; New Technology Solution Helps Facilitate Retailer's Growth Momentum.

Business Editors

LAWRENCEVILLE, N.J.--(BUSINESS WIRE)--March 17, 2003

UCCnet announced today that Albertsons, Inc., one of the world's largest food and drug retailers, will begin implementing the organization's item registration and data synchronization services for its more than 2,300 retail stores in 31 states nationwide. Albertsons is one of the first major U.S. food retailers to implement the UCCnet registration and synchronization services.

Albertsons will begin implementation in 2003 and will issue communications requesting that its suppliers join UCCnet and prepare to synchronize item information. The company plans to provide information in the near future to its partners on the benefits of UCCnet and directions on how to subscribe.

"Albertsons is dedicated to partnering with UCCnet and our suppliers in this industry-changing technology solution," said Larry Johnston, Albertsons CEO and Chairman of the Board. "UCCnet global registration and synchronization services will enable us with the integrated data to manage our supply chain effectively as we build our growth momentum in an increasingly competitive marketplace."

"We welcome Albertsons and look forward to the leadership that their executive team will provide," said Glenn DuBois, Executive Vice President and Chief Operating Officer, UCCnet. "We are pleased to be a partner of Albertsons and we expect to jointly take significant cost out of the retail supply chain for all participants in the UCCnet community."

Albertsons said the services would enable it to streamline the collection of item data from their suppliers by using UCCnet's GLOBALregistry(TM) as a single source to provide supplier and product information to all departments within the company.

An industry study conducted by A.T. Kearney estimated that $40 billion, or 3.5 percent, of total sales lost each year are due to supply chain information inefficiencies. Specifically, the study showed that 30 percent of items in retail catalogs have data errors, which cost between $60 and $80 each and consume 25 minutes of manual cleansing per SKU. Other findings revealed that 60 percent of all invoices generated errors and 43 percent of all invoices resulted in deductions. During the fall of 2002, A.T. Kearney conducted another study of three suppliers and three retailers that resulted in the conclusion that financial benefits could be realized in the neighborhood of 10 basis points or 0.1% of sales dropping to EBIT (Earnings Before Interest and Tax). The benefits were the result of business process changes adopted by the retailers and separately by the suppliers who have implemented these UCCnet industry utilities.

"Our Company is committed to driving technology solutions that enable us to not only meet, but to exceed the demands and challenges of today's competitive retail marketplace," said Bob Dunst, Albertsons Executive Vice President and Chief Technology Officer. "Our relationship with UCCnet will enable new supply chain efficiencies that will help us more effectively meet our customers' shopping needs."

To alleviate these costly errors, UCCnet enables registration and synchronization of item information, such as weight and dimensions, by providing a repository for standardized item, location and trading partner data. Suppliers load item, location and trading partner information into the UCCnet GLOBALregistry. UCCnet checks the data for compliance to industry standards and synchronizes it with demand side partners ensuring that all trading partners are using identical, updated, standards-compliant data.

UCCnet services will enable suppliers and their retail partners to reduce costly administrative errors in invoice pricing, purchase orders, product delivery and scanning accuracy. In addition, the company will be able to increase the speed of getting new products to market and facilitate changes to existing item information. Synchronized data in a standard format also provides a solid foundation for realizing the true cost savings value of more advanced e-commerce tools such as scan-based trading and CPFR.

About UCCnet

UCCnet is a not-for-profit, tax-exempt neutral organization that provides item registry and data synchronization based on industry-developed standards. UCCnet provides a foundation for electronic commerce and cost effective transaction of data among partners. Through its support of global EAN-UCC standards, UCCnet delivers an open platform for collaborative commerce services, including compliance verification, synchronization of product information, registry and lifecycle management of synchronized products, user locations and user trade capabilities.

As a subsidiary of the Uniform Code Council, Inc., the global standards organization, UCCnet leverages its position to enable the rapid, clear development of industry Internet standards and practices. In addition, UCCnet certifies technology solution providers and provides implementation methodology, allowing small, medium and large enterprises to implement item registry and data synchronization services into their business in a swift and efficient manner. For more information, visit www.UCCnet.org.

About Albertsons

Albertsons is one of the world's largest food and drug retailers, with annual revenues of approximately $38 billion. Based in Boise, Idaho, the Company employs more than 200,000 employees and operates approximately 2,300 retail stores in 31 states across the United States, under banners including Albertsons, Jewel-Osco, Acme, Albertsons-Osco, Albertsons-Sav-on, Sav-on Drugs, Osco Drug, Max Foods, Super Saver.