Versatile Mobile Systems Secures Contract With John Lewis Backed E-Grocer.

Business Wire

LONDON--(BUSINESS WIRE)--April 26, 2001

UK Supermarket Chain on Rapid Path to World Class Home Delivery

Service

Versatile Mobile Systems (Canada) Inc. (CDNX: VMS.), a leading mobile commerce solutions provider, has entered into an agreement with LM Solutions (LMS) to provide software and integration services for their announced home grocery delivery business initiative.

LMS is being launched in partnership with Waitrose - the food retail division of the John Lewis Partnership - to capture a significant share of the British grocery market, worth approximately 95 billion pounds each year. According to the Institute of Grocery Distribution, the online grocery business in the United Kingdom is expected to grow to approximately 25 per cent of the total UK grocery market within the next decade.

The initial contract includes an enterprise license for Versatile's "Delivery Director" mobile commerce solution, as well as enterprise server software. Versatile will provide a mobile wide area communications infrastructure that will give LM Solutions the ability to track deliveries wirelessly over the GSM network, thereby giving them a unique home delivery system with exceptional customer service. The initial contract is valued in excess of Canadian $1 million, with the first phase of the launch planned for later this year. Over the next three years, as the LMS network expands, Versatile will provide a full range of integration and support services, as well as mobile components, adding significant value to the initial contract.

The Delivery Director product includes feature-rich mobile software running on handheld computers manufactured by Symbol Technologies (NYSE: SBL), utilizing the Palm Operating System (OS). Versatile's Enterprise Communications Server, developed in Java, is a fault tolerant, clustered, load-balanced, OS independent solution, facilitating robust wireless communication. In addition, Versatile's software will be integrated with the DeliveryNet solution from Descartes Systems Group (TSE: DSG), a strategic partner of both Versatile Mobile Systems and LMS.

"LMS has been choosing 'best of class' suppliers to implement their solutions in every part of our business enterprise. We were pleased that Versatile Mobile Systems was immediately willing to become a part of our implementation team and work closely with our other partners. Versatile's expertise in mobile commerce and experience in the design of efficient tools for managing and tracking customer deliveries were the deciding factors in our selection of Delivery Director," said Roger Whiteside, joint Managing Director of LM Solutions and former Head of the Marks and Spencer Food Business. "Versatile's delivery solution, with its ability to track, log and ensure perfect deliveries to our customers, will help us set the standard for service, convenience and quality."

"We are pleased to be such an integral part of this great initiative by LM Solutions and the John Lewis Partnership," said John Hardy, Chairman and CEO of Versatile Mobile Systems.

About John Lewis Partnership

From its beginnings in London's Oxford Street in 1864, the John Lewis Partnership has grown to be one of the UK's best-known retail names. Its unique Trust structure was developed by John Lewis's son, Spedan Lewis, and finalised in permanent form in 1950. All 54,000 staff in the John Lewis Partnership retail group are known as "Partners" and through the Trust share in the profits as well sharing in power over its affairs through elected representatives. In March 2001 the Partnership Bonus (as a proportion of pay) was set at 10% - more than 5 weeks' pay. Over the last six years the amount of profits Bonus received by any Partner has amounted to the equivalent of one year's salary.

The preliminary estimate of annual results for the year ending 27 January 2001 issued on 8 March 2001 shows a pre-tax profit of Pounds150m on group sales of Pounds4.13 billion. The 25 department stores across the country range from Aberdeen to Southampton and from Bristol to Norwich. Internet company Buy.com was acquired in February and John Lewis opens its first department store in the West Midlands at Solihull in the autumn.

About Waitrose

Waitrose was founded by Wallace Waite, Arthur Rose and David Taylor in 1904. Beginning with a small West London grocery - and opening its first supermarket in 1955 - the food group currently comprises 136 Waitrose supermarkets in Central and Southern England (and one in Wales). Waitrose employs more than 27,000 people and aims to combine the convenience of a supermarket with the expertise and service of a specialist food shop.

About LM Solutions

LMS was founded by three ex-Goldman Sachs directors in January 2000: Jonathan Faiman, Jason Gissing, and Tim Steiner. The John Lewis Partnership has taken a 40% equity share in LMS and has granted them the exclusive rights to use the Waitrose brand. The company is expected to become a leading online European food retailer. LMS will operate a dedicated, scalable e-grocery service from regional distribution centers, targeting areas with high population density across the UK.

About Versatile Mobile Systems

Versatile Mobile Systems (VMS) provides mobile commerce solutions that enable multi-national organizations to manage wireless data, allowing integration of sales, marketing and logistics processes to drive revenue and improve operational efficiency.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

(C) 2001 Versatile Mobile Systems (Canada) Inc. All rights reserved.