Associated Wholesale Grocers Replaces Scanners with Vocollect's Voice-Directed Distribution System.

Business Editors/High-Tech Writers

PITTSBURGH--(BUSINESS WIRE)--March 9, 2004

"Hands-free, Eyes-free(TM)" Operation Improves

Productivity and Accuracy; Provides Significant Cost Savings

Associated Wholesale Grocers (AWG), the second largest grocery cooperative in the nation, implemented Vocollect's voice-directed distribution system, an integrated software and hardware solution, in its 1,000,000 square-foot Kansas City, Kan. facility, replacing both paper pick lists and hand-held scanning terminals in its case-picking operations. The payback was rapid and significant - well under one year's time. Even more impressive to AWG was that despite the precision of scanners, accuracy results with voice are at least equivalent, and frequently better, with error rates dropping a remarkable 25 percent following the installation.

"AWG has always used technology to improve its operations and provide better service to our retail customers," said Rich Vastine, AWG's corporate director of industrial engineering. "We're very pleased with the results from Vocollect's voice solution. Previously, we went from paper to bar code scanners to increase accuracy rates, but lost productivity. Now, with voice, we get both benefits. A hands and eyes free operation is such a natural way for our associates to work. They're more alert now and working more efficiently - smarter, not harder. After just a few shifts using Vocollect's system, no one wanted to go back to scanners." These impressive results garnered attention from Tompkins Associates, which recently published a white paper highlighting the effectiveness of voice-directed systems over scanning. Visit www.tompkinsinc.com to view the white paper.

AWG's Executive Vice President and CFO, Robert Walker, says the proof is in the payback. "We'll save millions of dollars with the voice installation. Our initial calculations projected an 18-month payback, but it will be quicker than that. Our original figures were based solely on expected accuracy and productivity gains. We hadn't even considered the additional benefits and savings we're getting from reductions in training time, product and equipment damage, and workers' compensation claims. It certainly has been a tremendously successful investment for AWG."

Installed in February 2003, Vocollect's voice-directed distribution application software is configured specifically for AWG's warehouse operation and provides managers with real-time visibility into floor operations so they can react to changing conditions immediately. The system pairs Vocollect's leading, high-performance industrial speech recognition technology with its rugged, built-for-purpose, full-shift wearable Talkman(R) voice computer, running industry standard Microsoft(R) Windows(R) CE and 802.11b WLAN technologies. It readily integrated with AWG's existing technology infrastructure.

AWG's Kansas City warehouse includes dry goods, frozen and perishable items; runs three shifts, seven days a week; and has more than 200 Talkman mobile voice computers in use. The warehouse stocks 25,000 SKUs and ships 450 orders each day to 325 stores in the Midwest, including AWG's PriceMart, Cash Saver, Apple Market, Thriftway, Country Mart, Sun Fresh and PriceChopper store concepts.

AWG also plans to put voice to work for additional applications in its operation, according to Vastine. "Voice is a viable tool that works tremendously well in our environment. Once we implement the Vocollect system for picking in our other facilities, we'll deploy voice in all aspects of the warehouse. We really want to maximize our investment and the payback we're seeing with voice." AWG will then join other Vocollect customers already using voice to improve flow-through, cycle counting, put-away, replenishment, transfers, receiving and loading applications.

"Associated Wholesale Grocers is in the forefront of a trend to replace scanners with voice in the warehouse. It's a demonstrably faster and more accurate approach that drives far higher productivity than scanning alone can provide," said Jack LeVan, president and CEO of Vocollect. "They're among the first of many customers to realize the advantages of the Talkman system over scanning solutions, and it's been a pleasure to work with AWG to expand their use of voice, enhance its functionality in their business and continue to improve their bottom line results."

About Associated Wholesale Grocers

Founded in 1926, Associated Wholesale Grocers (AWG) is the second largest cooperative grocery wholesaler in the nation. The AWG cooperative supplies more than 1,259 member-stores with wholesale grocery sales, advertising and market support, store decorating and design, and selecting appropriate technology. The co-op's territory covers primarily Arkansas, Kansas, Missouri, Tennessee, and Oklahoma, but also eleven other Midwestern and southern states. The co-op offers its members the use of such banners as PriceMart, Cash Saver, Apple Market, Thriftway, Country Mart, Sun Fresh and PriceChopper. AWG also operates more than 30 of its own Falley's and Food 4 Less stores in Kansas and Missouri, as well as 43 Homeland stores throughout Oklahoma.

About Vocollect

With more than 50,000 users at hundreds of companies and locations throughout North America, Europe and Asia Pacific, Vocollect has pioneered and deployed more integrated voice-distribution warehouse systems than any other company. Together, its market-leading Talkman wearable computing terminal and integrated software suite, cut operating costs through eliminating errors and improving worker productivity shift after shift. The company collaborates with the premier global network of systems integrators and leading WMS providers to serve warehousing customers in the grocery wholesale and retail, general and mass merchandise, foodservice, convenience store, beverage, health and beauty, third-party logistics and medical/pharmaceutical industries. A fast-growing, privately held company of about 150 employees, Vocollect is headquartered in Pittsburgh, Pa., with support staff throughout North America, and European operations based in its offices in the U.K. For additional information, call Vocollect at 412-829-8145 or visit www.vocollect.com

Vocollect and Talkman are registered trademarks of Vocollect, Inc.