Connect3 Systems Names David Auerbach President and Chief Operating Officer.

Business Editors

CERRITOS, Calif.--(BUSINESS WIRE)--Jan. 9, 2003

Connect3 Systems, Inc., a leading provider of retail Advertising, Merchandising and Promotion solutions, announced today the appointment of David Auerbach to the position of President and Chief Operating Officer. Mr. Auerbach will assume the responsibilities for daily operations and strategic business development. In this role he will utilize his experience in the retail and technology industries, along with his sales and marketing expertise, to direct the company's continued growth.

Prior to joining Connect3, Mr. Auerbach spent 10 years as Executive Vice President and Chief Operating Officer for TCI Solutions, Inc. in Irvine, Calif. During his tenure the company experienced rapid growth through the development and implementation of a world class merchandising/pricing system for the grocery industry. He was responsible for leading the sales, marketing and product management teams and actively participated in the creation of the vision and strategy responsible for the company's success.

"Connect3 is positioned in the sweet spot of the retail advertising, merchandising and promotion, or AMP, solution space," said Mr. Auerbach. "They have a successful 10 year track record in targeted promotion planning and execution, a sophisticated and feature-rich next generation product and an incredibly strong customer base. Their traction with leading retailers is unsurpassed in the AMP space and there are tremendous growth opportunities for Connect3 in 2003. I look forward to working with the Connect3 team as we continue to deliver the proven results expected by industry leading retailers."

Prior to his work at TCI Solutions, Mr. Auerbach spent 7 years as senior Vice President of Sales and Marketing at Scantron Corporation and 17 years at Xerox Corporation in a variety of sales, marketing and executive management positions.

Dale Byrne, CEO of Connect3 Systems commented, "Over the past several years, Connect3 has worked with our customer-partners to develop the VELOCITY Performance Series AMP solutions. The January 2003 release of VELOCITY Version 1.2 increases Connect3's strategic position with a validated ROI and endorsements from industry leaders. The timely addition of Dave to our management team will ensure that we continue to build the infrastructure to support our continuing profitable growth." He went on to say, "Not only is Dave's background and experience ideal for this position, he is also an ideal fit for the Connect3 culture. He is a great addition to Connect3 and I look forward to working closely with him to dramatically increase the value we provide to our customers, partners and shareholders."

About Connect3 Systems

Connect3 Systems, Inc. is a leading provider of software solutions and services that assist retailers in the planning and execution of their Advertising, Merchandising and Promotion (AMP) processes. The Connect3 VELOCITY Performance Series presents a unified environment in which all participants in the retail enterprise can plan, negotiate, create, manage, execute, reconcile and analyze promotions. Connect3's software and Professional Services allow merchants across all industry segments to compress the promotions cycle, reuse existing content, and target their item message to increase accuracy, efficiency and profitability.

Customers include Best Buy, The Home Depot, Sports Authority, Ahold USA and other leading merchants. Resellers and Technology Partners include Retek, IBM, Nurun, AnswerThink, Quark, Xinet, American Color and others. For more information, visit www.connect3.com or call 562/741-0380.

Connect3 and Connect3-related marks are trademarks and/or registered trademarks of Connect3 Systems, Inc. and all applicable affiliated companies, Reg. U.S. Pat. & Tm. Off., and in many other countries. All other marks are the properties of their respective owners.