Electronic Retailing Systems International adds Shaw's to its customer roster.

WILTON, Conn.--(BUSINESS WIRE)--Jan. 20, 1995--Electronic Retailing Systems International, Inc. (ERS) today announced that Shaw's Supermarkets Inc. has signed a letter of intent to install the ERS electronic shelf label system in one test store and four of its other stores, subject to meeting Shaw's contractual and operational requirements.

Shaw's is a major food retailer in New England, with 81 stores located throughout Massachusetts, Rhode Island and New Hampshire. Shaw's is a wholly owned subsidiary of J. Sainsbury Plc., a leading grocery retailer in the United Kingdom.

Bruce Failing, president and CEO of ERS said, "We are delighted to add Shaw's to our roster of 11 leading grocery retailers in North America. Shaw's has long been recognized in the industry as a leader in utilizing advanced retailing technologies in the United States. In the recent past, Shaw's has been in the forefront of installing such systems as point of sale scanning and computer assisted ordering on a chainwide basis. We are looking forward to the successful installation of the 5 Shaw's stores as a first step toward chainwide installation of the ERS system."

Bruce Failing went on to say, "ERS is delighted to add Shaw's to the ERS family of active customers, and is confident that the addition of Shaw's is another indication of the progress of the ERS system toward becoming the system of choice for retailers throughout North America.

Given the increasing interest in the ERS system, ERS believes it continues to be well-positioned to achieve its objectives and to capitalize on the opportunities created by the emerging market for electronic shelf labeling systems."

ERS believes it is a leading developer and supplier of electronic shelf label systems. The ERS system is designed to provide accurate pricing by linking a store's central computer both to its checkout scanner and to the ERS electronic liquid crystal display shelf labels at the shelf edge. The ERS system allows for pricing information to be automatically changed on the electronic shelf labels when prices in the point-of-sale scanners are changed. This system eliminates the need for paper price tags, which require labor-intensive servicing and do not provide the level of pricing accuracy achieved by electronic shelf label systems. The ERS system also includes patented software applications that enable the retailer to communicate additional product information to and from the aisle to secure additional merchandising, space management, and inventory management benefits.

ERS's common stock is traded on the NASDAQ National Market System under the symbol "ERSI".

CONTACT: Electronic Retailing Systems International, Inc.

Bruce F. Failing, Jr.

203/761-7900