WWRE Selects Alexandria, Virginia, for Headquarters

ALEXANDRIA, VA. (Nov. 27, 2000) - The WorldWide Retail Exchange (WWRE), the leading global business-to-business (B2B) exchange over the Internet, today announced the addition of 11 new members, bringing total membership to 53 of the world's leading retail companies. The WWRE selected Alexandria, Virginia, as its corporate headquarters and plans to open its offices in January 2001.

The WWRE (www.worldwideretailexchange.org) is a Web-based B2B retail e-marketplace designed to facilitate and simplify trading between retailers and more than 100,000 suppliers, partners and distributors. Consisting of leading retailers from Africa, Asia, Europe and North America, the WWRE is open to all suppliers and retailers who wish to use it. Currently, the Exchange represents U.S. $722 billion or Euro 856 billion in combined sales.

About the Newest Members

Coop Schweiz (Switzerland) is a premiere food retailer in Switzerland. The co-op runs a network of more than 1,600 food stores, hypermarkets, mini-markets and gas stations through 14 regional cooperatives. The co-op also owns consumer electronics chains, perfume shops and furniture stores. It has 37,000 employees. Coop Schweiz had U.S. $7.9 billion (Euro 9.4 billion) in sales in 1999.

Coop Italia (Italy) is the marketing and purchasing division of the Coop Group, the premiere food retailer in Italy. Coop Italia manages a network of more than 1,320 outlets among hypermarkets, supermarkets, mini-markets and discount. It has more than 40,000 employees. In 1999, the company accounted for more than U.S. $7 billion (Euro 8.2 billion) in sales.

Galeries Lafayette SA (France, Parisborse: 12124) is the French leader in the department store industry and in the city-centers' retailing. The company manages the following well-known retail outlets: Galeries Lafayette, Nouvelles Galeries, Monoprix, Prisunic and BHV. The group operates 403 stores, 315 of which are operated directly and 88 are affiliates. The company also provides IT based services in the field of credit cards, "one-to-one" marketing and e-business through its LASER division. The group is primarily based in France. Retail clothing and consumer goods sales accounted for 85 percent of 1999 revenues. Total sales volume for 1999 was 39.7 billion French Francs (Euro 6.05 billion).

Giant Eagle (U.S.), founded in 1931, has grown to be the leading supermarket retailer in the region with 116 corporate and 86 independently owned and operated stores throughout Western Pennsylvania, Northeastern Ohio and North Central West Virginia. By offering a unique shopping experience, the Giant Eagle Advantage Card (Circle R), Giant Eagle Branded Products and ongoing community support, Giant Eagle strives to "make life simple" for the customers they serve. The privately held company had 1999 sales estimated at approximately U.S. $4.5 billion (Euro 5 billion).

H. E. Butt Grocery Company (U.S.) was established in 1905 in Kerrville, Texas. HEB is still owned and operated by the Butt family and has established itself as one of the leading regional food retailers in the United States. The now $8 billion company employs more than 50,000 employees in 278 stores and 115 communities in Texas, Louisiana and Mexico.

Laurus (The Netherlands) is one of the leading players in the Dutch supermarket industry. The company represents more than one quarter of the market with several thousand stores across the Netherlands, Belgium and Spain. Laurus had U.S. $5.5 billion (Euro 6.3 billion) in net sales last year.

Rewe (Germany) is one of the leading food retailers in Germany and Europe. The cooperative company has 173,000 employees and runs 11,680 stores in the home-market and in 11 different European countries (supermarkets, hypermarkets, discount stores and specialist stores). In 1999, Rewe had U.S. $29 billion (Euro 34.4 billion) in sales. In addition to its retail stores, the company owns and operates a wholesale business. In the service sector, Rewe is one of the top five of the European tourism companies.

ShopKo Stores, Inc. (U.S., NYSE: SKO) a Fortune 500 company headquartered in Green Bay, Wis., operates 390 retail stores in 22 states, primarily in the Midwest, Western Mountain and the Pacific Northwest regions. Retail operations include 164 specialty discount stores operating under the ShopKo name in mid-sized and larger cities, and 226 Pamida discount stores in smaller, rural communities. The company had U.S. $3.9 billion (Euro 4.6 billion) in sales for calendar year 1999.

Sobeys Inc. (Canada, TSE: SBY) is among Canada's leading food distributors in terms of sales, number of stores and geographic presence. Sobeys Inc. employs more than 32,000 associates and operates 1,371 stores in 10 provinces. The company also provides the country's only national foodservice operation‹SERCA Foodservice Inc. Sobeys Inc. is represented by many retail banners, including IGA, Sobeys, Price Chopper, Boni Choix, Foodland, Knechtel, Food Town, Needs, Green Gables and Lawtons Drugs. Headquarted in Stellarton, Nova Scotia, Sobeys Inc. has annual sales revenue of U.S. $7.2 billion (Euro 8.3 billion) in fiscal year ending 2000.

Tengelmann Group (Germany) is one of the world's leading food retailers. The group has 7,900 supermarkets, drugstores and general stores, mostly in Europe. Stores include Plus, Obi, KiK and A&P. The company also makes candy and chocolate. The privately held company has more than 200,000 employees. In fiscal year 1998/1999 (ending June 30, 1999), the Tengelmann Group had annual sales of U.S. $22 billion (Euro 26.4 billion).

Toys R Us (U.S., NYSE: TOY), among the world's leading resources for kids, families and fun, currently operates 1,564 stores. They include 707 toy stores in the United States and 477 international toy stores, including franchise stores; 200 Kids R Us children's clothing stores; 140 Babies R Us stores and 40 Imaginarium stores. The company also sells merchandise through its Internet sites and mail-order catalogs. Toys R Us had U.S. $11.8 billion (Euro 14.1 billion) in 2000 sales revenue.

A Brief History of the Exchange

The WWRE was founded in March 2000 with a goal of using the Internet to improve efficiencies in the supply chain. This would ultimately benefit consumers by reducing costs.

The seventeen international founders envisioned the WWRE as a collective, open to everyone and generating benefits for members, suppliers and consumers, not the Exchange itself. To that end, the members decided that the WWRE would be run as an independent, private company with no plans of going public.

Also central to the plan was the selection of an independent technology provider. By partnering with a technology provider, rather than making it a member, the WWRE allowed itself the freedom to partner with any company or companies that could provide the most up-to-date technology available.

In July, the WWRE selected as its partner the e-business alliance of IBM, i2 Technologies Inc., and Ariba Inc. The multi-year, multi-million dollar contract was awarded based on the group's B2B capabilities. The technology alliance also promised to have the WWRE up and running by the end of the summer. In addition, the WWRE selected Arthur Andersen to provide finance, tax and accounting services.

With interest in the WWRE growing, members hosted a set of informational sessions for suppliers in London and New York in July. The Supplier Summits explained the principles behind the WWRE and discussed its impact on the traditional retail supply chain. The summits attracted hundreds of suppliers from around the world.

In August, the WWRE announced the selection of its chief executive officer (CEO). Former textiles executive Colin Dyer joined the WWRE from Courtaulds plc, where he served as the company's CEO. Dyer was chosen to lead the Exchange based on his experience in international retail and his understanding of where retail and the Internet were converging.

Also in August, the WWRE announced that it was operational, having successfully completed its first online auctions. Five auctions‹three hosted by individual retailers and two hosted jointly by several retailers‹attracted bids from around the world in a successful demonstration of the WWRE's technology and founding principles.

In November, the WWRE appointed former Target Corporation executive Robert Heaton to the role of chief financial officer. The WWRE also named former Harrods CEO Don Norman chief information officer.

What's Ahead

In the coming months, the WWRE plans to further develop its infrastructure. Recently, the company selected Alexandria, Virginia, as the location for its corporate headquarters and has begun to hire staff. To date, executives and leaders from member companies have staffed the WWRE.

The WWRE intends to continue recruiting more members and suppliers through sustained marketing and communications activities around the world.

The WWRE plans to increase its technology offerings to suppliers and retailers. The company plans to make more software tools, such as supply chain and e-procurement, available to its members. It plans to implement transaction process, product development, catalog development and browsing tools.

The WWRE also plans to integrate its capabilities with member companies' back-office software. Ultimately, the WWRE will allow participants to progress on their own B2B strategies, tailoring and enhancing the Exchange software to best meet their own needs.

About the WWRE Members

In addition to the new retailers, WWRE membership includes the following:

• Albertson's (U.S., NYSE: ABS)
• Auchan (France)
• Best Buy (U.S., NYSE: BBY)
• The Boots Company (U.K., LSE: BOOT.L)
• C & A Europe (Belgium)
• Casino (France, Parisbourse: 12558)
• Cora (France, PSE: 06176)
• CVS/pharmacy (U.S., NYSE: CVS)
• Dansk Supermarked (Denmark)
• Dairy Farm International (Hong Kong, SES: DAIR.SI/Reuters, DAIRYNEW SP/Bloomberg)
• Delhaize Group (Belgium, BSE: DEL)
• Dixons Group plc (U.K., LSE: DXNS)
• Edeka (Germany)
• El Corte Ingles (Spain)
• Gap Inc. (U.S., NYSE: GPS)
• JCPenney (U.S., NYSE: JCP)
• John Lewis (U.K., JLH)
• Jusco (Japan, TSE: 8267)
• Kesko (Finland, HEX: KES)
• Kingfisher (U.K., LSE: KGF)
• Kmart Corporation (U.S., NYSE: KM)
• Longs Drugs (U.S., NYSE: LDG)
• Makro Asia (Bangkok)
• Marks & Spencer (U.K., LSE: MKS)
• Meijer, Inc. (U.S.)
• The Otto Versand (Germany)
• Publix Super Markets (U.S.)
• RadioShack Corporation (U.S., NYSE: RSH)
• Rite Aid Corporation (U.S., NYSE, PSE: RAD)
• Royal Ahold (The Netherlands, NYSE: AHO)
• Safeway Inc. (U.S., NYSE: SWY)
• Safeway plc (U.K., LSE: SFW.L)
• Schlecker (Germany)
• Seibu Department Stores Ltd. (Japan)
• SUPERVALU INC. (U.S., NYSE: SVU)
• Target Corporation (U.S., NYSE: TGT)
• Tesco (U.K., LSE: TSC.OL)
• Walgreen Co. (U.S., NYSE: WAG)
• Wegmans Food Markets, Inc. (U.S.)
• Winn-Dixie Stores, Inc. (U.S., NYSE: WIN)
• Woolworths (Australia, ASX: WOW)
• Wooltru Ltd. (South Africa, JSE: WLO)
  

   

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