Companies worldwide to benefit from U.S.-based supply chain solutions provider.

ATLANTA--(BUSINESS WIRE)--March 5, 1997--E3 Associates Ltd. today announced that it has opened its eighth and ninth international offices -- in Melbourne, Australia and Madrid, Spain -- to bring its unique supply chain solution directly to companies throughout the world.

The supply chain industry, already a $300 million business, is expected to grow to a $2 billion industry in the next five years, according to the Inventory Management institute.

E3's solutions focus on the critical issue of inventory management and have enabled companies such as The Sports Authority to reduce inventory nearly 25 percent while increasing the number of items its buyers handle by 141 percent. Similarly, Ace Hardware was able to reduce its inventory by $50 million after installing the E3 inventory management system.

E3's software systems allow customers to "mine" data related to products so they can forecast and more accurately predict sales. This is critical to the long-term success of companies since inventory can represent almost 70 percent of the assets of a distribution-type business. In addition, E3 teaches the "Smarter Buying" concepts which show companies how to save money by buying more efficiently and profitably.

"Every CEO we talk to understands why it's so important to effectively manage inventory throughout the supply chain," said Anders Herlitz, chairman of E3. "This is a global issue. One of our most recent contracts is with the largest food company in Chile, D & S. It is expanding rapidly and needed to gain greater efficiencies in its replenishment process for inventory. Balancing inventory with service, improving productivity, gaining management control, vendor partnering...these are issues that affect companies worldwide."

E3 Associates, headquartered in Atlanta, now has offices in nine countries -- Australia, England (European headquarters), France, Germany, Italy, Norway, Spain, Sweden, and the U.S. -- and provides its software in nine languages: English, Flemish, French, German, Italian, Norwegian, Portuguese, Spanish, and Swedish.

In addition to its consulting and education services, E3 has four major software products -- a distribution center replenishment program (E3TRIM(TM)), a vendor-managed inventory program (E3CRISP(R)), a retail store replenishment program (E3SLIM(R)), and Executive Scoreboard(TM), an enhanced executive information system that works with E3TRIM to give to top managers additional graphical and analytical tools to access inventory data and management information.

The company, whose founder Anders Herlitz was named 1996 High Tech Entrepreneur of the Year for the Southeast/Georgia region by Ernst & Young, built its international presence based on a history of providing measurable, profitable solutions for U.S.-based companies.

E3 serves more than 20 retail and wholesale industries, and is especially strong in the drug, food and hardgoods industries: 12 of the top 20 drug wholesalers and six of the top 10 drug retailers; 10 percent of the top foodservice distributors; and eight of the top 16 hardware wholesalers in the U.S. use E3. E3 is also a leader in vendor-managed inventory (VMI) solutions.

E3 provides inventory management systems and services to more than 650 wholesalers, retail chains and manufacturers worldwide, including Rubbermaid, Eckerd Drug and Victoria's Secret Stores. These companies use the E3 system to reduce inventory levels, boost buyer productivity, increase service -- and improve profitability. E3 is the largest company focusing exclusively on inventory management solutions in the world. The company was founded in 1980, employs 130 people, and reported 1996 revenues of $21 million.

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CONTACT: E3 Associates Ltd.

Nancy Joyce, 770/424-0100

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Duffey Communications Inc.

Peggy Moody/Mike Neumeier, 404/266-2600

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