Covansys Implements New UPC System for Cabela's Improving Business Efficiencies.

Business Editors/High-Tech Writers

FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--Jan. 7, 2003

World's Foremost Outfitter(R) of Hunting, Fishing and Outdoor Gear

Standardizes Bar Code System, Complies with CSI and Sunrise Date

Regulations

Covansys Corporation (Nasdaq: CVNS), a global consulting and technology services company, announced today the successful implementation of a Universal Product Code (UPC) system for Cabela's. The new system, which was designed to replace Cabela's internal proprietary bar code system, increases efficiencies throughout the production and sales cycle and enables Cabela's to meet the Container Security Initiative (CSI) mandates and the Sunrise Date UPC recommendations.

For this project, Cabela's utilized Covansys' unique, blended onsite/offshore outsourcing model that allows for seamless operations 24 hours a day, 7 days a week.

"Cabela's now has the ability to track products from the issuance of a purchase order through the receiving and fulfillment process, to the point of sale, to the payment of the invoice. This has significantly increased efficiency within our distribution centers, retail stores and vendor interactions, as many of them already use UPC bar codes. We partnered with Covansys for this project because of its proven reputation, technical expertise, and offshore outsourcing capabilities--and they didn't disappoint," said Larry Popps, M.I.S. director of Cabela's.

CSI regulations were recently implemented to improve U.S. security by tightening and expanding cargo-reporting requirements, and by establishing standards for the security and integrity of containers and cargo throughout the transportation supply chain. Companies, such as Cabela's, that convert their proprietary barcode systems to meet the new CSI regulations and Sunrise Date recommendations will be much better equipped to expand global trade opportunities.

"We believe that Cabela's is already reaping value-added benefits from their new UPC system," said Martin C. Clague, Covansys president and CEO. "In addition to increased efficiencies resulting from converting to UPC standards, Cabela's is well-positioned to meet the new business challenges and opportunities posed by two converging events in supply chain management: The Container Security Initiative and The Sunrise Date."

A secure and effective supply chain relies on Global Trade Item Numbers (GTINs) as a critical tracking and auditing tool. Barcodes, such as the UPC codes used by American companies, are one type of GTIN. On January 1, 2005, The Sunrise Date, the Uniform Code Council (UCC), the governing body that issues barcodes, will no longer support the current 12-digit UPC barcode. Databases and processes that rely on the 12-digit standard will need to be altered to manage the new standards. Companies unable to meet the new standards will face costs associated with relabeling goods, finding new suppliers, or being shut out of markets.

The CSI and The Sunrise Date are expected to force fundamental changes in both immediate and long-term supply chain practices. Supply chain planning now demands a broad knowledge of government security regulations, overseas procurement, flexible cargo routing, and effective integration of systems reporting product status at every management level.

Covansys recently launched their Secure Supply Chain Solution to help retail and distribution companies develop customized solutions to address the sweeping changes resulting from the CSI regulations and The Sunrise Date. Covansys has been executing similar conversion projects for the past 18 years for leading retailers such as Lands' End and The Kroger Company.

Covansys also possesses a decade-long track record of success in managing outsourcing for more than four-dozen top companies, including SIRVA, Guardian Insurance, Henry Ford Health Systems, and UNUMProvident Corporation. Covansys currently has three offshore development centers in India.

About Covansys Corporation

Headquartered in Michigan, Covansys Corporation (Nasdaq: CVNS) is a global consulting and technology services company specializing in industry-specific solutions, strategic outsourcing and integration services. Our clients gain competitive advantage by leveraging our unique on-site, offsite, offshore delivery capability to achieve rapid deployment, world-class quality and reduced costs. Since its founding in1985, Covansys has successfully delivered an array of innovative and cost-effective business and technical solutions to leaders in the private and public sector. Our 4,800 employees offer a professional heritage spanning Old World legacy systems and the New Economy's leading-edge technologies. Covansys has 30 locations worldwide, including six development centers. Covansys offers one of the largest offshore capabilities among U.S.-based technology services providers, and two of the company's three wholly owned development centers in India are SEI CMM(R) and PCMM(R) Level 5 certified. Covansys was named one of the top 500 solution providers in North America in 2002 by VARBusiness magazine. Visit our web site: www.covansys.com.