CRS Retail Systems and Apropos Retail Join Forces.

NEWBURGH, N.Y. & LYNNWOOD, Wash. -- Leading Retail Software Providers CRS and Apropos Create Expanded Capabilities, Broad Market Coverage and Differentiated Host-to-Post, 'All' Channel Application Suite

CRS Retail Systems, Inc., market-leading provider of retail software for point-of-sale (POS), store operations, and retail analytics, today announced that it has acquired Lynnwood, WA-based Apropos Retail, a premier provider of chain retail management systems for specialty store and general merchandise retailers.

"We are capitalizing on the fact that there are few well architected and affordable host-to-post retail system offerings available to growing specialty retailers. We are also adding a very talented group of executives and technologists to the CRS team. By bringing the two companies together, we offer retailers great options to configure high-ROI, integrated systems for their enterprise with a single vendor, while continuing to capitalize on CRS' well known best-of-breed, point-of-sale and related applications," said Kathy Frommer, chief executive officer of CRS Retail Systems.

"The core values of Apropos are very synergistic with CRS. Our two companies are extremely customer driven and share a commitment to helping retailers expand and improve their businesses," according to Kent McNall, Apropos co-founder and president and newly appointed CRS chief technology officer and executive vice president of merchandising. "By joining with CRS, we position our company for continued innovation, growth and the opportunity to leverage CRS' complementary software applications and strong industry position to take the combined company to the next level. We are very optimistic about the future, and look forward to delivering the next generation of retail management systems that will create a new standard for retail software."

Expanded Product Suite Offers Retailers Greater Flexibility

CRS markets its CRS RetailSuite(TM) (including POS and back-office modules, cross channel stock locator / order manager, sales audit, CRM, labor management, loss prevention and other applications) products to specialty retailers worldwide.

When adding Apropos' fully integrated suite of operational software systems for "all sales channel" retailers including merchandising, allocation, data warehousing, e-Commerce, and order fulfillment to CRS' core applications, the combined application suite is unparalleled in terms of functionality and value for today's retail market.

The combined company's customer base more than doubles, and today 140 leading specialty and general merchandise retailers rely on CRS. Among retail software providers, CRS and Apropos are both well regarded and highly rated by retailers. The Leaderboard 2003, an annual retailer survey published by RIS News, ranked both Apropos and CRS in the Top 15 software vendors to the retail industry, and in the Top 10 in the categories of customer satisfaction and return on investment. CRS applications and value-added services now address a complete range of needs across the retail technology and operations landscape.

CRS is pleased to welcome its newest team members from Apropos Retail, who will continue working from their facility in Lynnwood, Washington, which will serve as the development hub for CRS' host / corporate systems applications.

Shared Vision Also Solidifies Commitment to Microsoft Technology Infrastructure

Further underpinning the strategic merit of this transaction is the fact that both companies have product development strategies using the Microsoft Windows Server System based on Microsoft .NET technologies. The culmination of this transaction will have significant impact on the combined entity's important relationship with Microsoft and represents a strong commitment to delivering integrated retail systems that align with Microsoft's Smarter Retailing Initiative.

"When two of Microsoft's leading and progressive retail-focused business partners combine, it's a win for retailers. We look forward to further enhancing our relationship with CRS to deliver solutions built on Microsoft .NET that take advantage of our Smarter Retailing vision," stated Brian Scott, general manager of Microsoft's Retail & Hospitality Industry Solutions Group.

About CRS Retail Systems, Inc.

CRS Retail Systems provides retail management software, hardware, and services to help its customers drive sales, improve customer service, and reduce operating costs, all with more ease and flexibility. With more than 50,000 in-store systems installed in 32 countries and 10 languages, CRS is a trusted leader in the retail industry. CRS customers include leading retailers such as Aeropostale, American Eagle Outfitters, Ann Taylor, Barnes & Noble, bebe, Cache, Chico's, Coach, Dress Barn, Eileen Fisher, Factory Connection, Finish Line, Foot Locker, GNC, J. Crew, Pro Golf Discount, Skechers, St. John Knits, Stage Stores, Transworld Entertainment, Tuesday Morning, Inc., Woodcraft, Yankee Candle Company and Zumiez, among others.

CRS is privately held with more than 360 employees based in Newburgh, N.Y. and regional offices in Seattle, Washington and Salt Lake City, Utah. CRS' lead investor is Accel-KKR LLC, a technology focused private equity firm founded in 2000 by venture capital firm Accel Partners and private equity investment firm Kohlberg Kravis Roberts & Co. (KKR). With a history of debt-free and profitable operations, CRS and Accel-KKR look forward to capitalizing on new growth opportunities.

For more information, please visit www.crsretail.com, www.aproposretail.com or call 845-567-1234.