Electronic Retailing Systems International announces action on patents related to electronic shelf label technology.

WILTON, Conn.--(BUSINESS WIRE)--Sept. 26, 1995--Electronic Retailing Systems International Inc. (ERS) today announced that the company has been notified by the U.S. Patent and Trademark office that it has been granted a patent directed to value-added capabilities of electronic shelf label technology, and received notice of allowance of a second patent application in a related area. To date, ERS has been granted six United States patents related to electronic shelf label technology and has a number of other patents pending in the U.S. and in other countries.

The granted patent, number 5,448,226, which issued on September 5, 1995, is directed to shelf talker management in conjunction with an electronic shelf label system. This includes utilizing the electronic shelf label network to automatically determine the existence or absence of promotional shelf talkers and performing audits comparing scheduled promotions to those actually implemented. The second allowed patent application, which is expected to issue shortly, relates to the switching of information on electronic shelf labels in a particular sub-area or section of a store through the use of a hand-held terminal or other means, to display alternate information such as inventory on hand, order quantities, or planogram data.

Bruce F. Failing, Jr., ERS's president and CEO, stated, "These patents will help protect ERS's position as a leading provider of electronic shelf label systems and value-added applications. Through the use of ERS's electronic applications, retailers have the opportunity to realize significant operational efficiencies and gain a real strategic business advantage that just wouldn't be possible with either traditional paper-based labels or electronic shelf label systems from other vendors." Failing went on to say "Since our founding five years ago, we have believed strongly that value-added applications for strategic price management, inventory control and merchandising would be a key requirement for success in the emerging market for electronic shelf label systems."

ERS's ShelfNet(TM) system is intended to provide retailers with a comprehensive in-store information management utility. It uses a reliable spread spectrum wireless communications network with specially-designed powered rails at the shelf edge. The rails are designed to provide secure attachment for the electronic labels, as well as to deliver on-line power and communications for rapid price changes and continuous monitoring of the system. The ShelfNet(TM) system automatically changes price information at the shelf when prices in the store's point-of-sale scanners are changed, eliminating inaccuracy that can occur when prices shown on paper shelf labels do not match prices that have been updated in the scanners.

Electronic shelf labels also eliminate the difficult and time-consuming task of printing and changing paper shelf tags each time prices are adjusted. In addition to pricing, ERS's patented software applications can enable the retailer to communicate other information to and from store personnel working in the aisle for more effective merchandising, ordering, and shelf-set management.

ERS, headquartered in Wilton, is a leading developer and supplier of electronic shelf label systems in the emerging market for those systems. ERS assists retailers in delivering accurate pricing information to consumers and provides the opportunity for its customers to achieve a competitive advantage through labor savings and enhanced merchandising effectiveness. The company's common stock is traded on the NASDAQ National Market System under the symbol "ERSI".

CONTACT: Electronic Retailing Systems International Inc.

Margaret Austin, 203/761-7921