Montreal, Canada, January 6, 2003 – STS, an NSB Company, is pleased to announce that JCPenney Inc. has signed an agreement to implement the next-generation Microsoft. NET-based Connected Retailer Store Solution, powered by Coalition(tm).

JCPenney has one of the largest POS-installed populations in North America, and has been faithfully served by their internally developed POS software for many years. However, recognizing that it was becoming more difficult to deliver new business initiatives on the current platform, they began reviewing their technology platforms and vendors to decide on a new strategy to take them forward.

Following an exhaustive evaluation, JCPenney selected STS`s Connected Retailer Store Solution. Connected Retailer Store will offer many benefits, including support for new peripherals (such as touchscreen) and new customer-service-oriented functionality (such as Enterprise Returns and Electronic Journaling). It will also provide a technology platform that will enable them to continue in-house development, while retaining the benefits of being on a shared product path with other Connected Retailer Store clients. The new STS solution is targeted to pilot in 2003.

STS CEO Nikki Beckett commented, “We are incredibly proud to be partnering with JCPenney to deliver our .NET Connected Retailer Store Solution. We view this as an endorsement of our Microsoft-centric approach and the significant investment we`ve made to adopt .NET as our preferred technology platform. We also see this as further validation of our Connected Retailer strategy: to provide retailers of all sizes a comprehensive portfolio of integrated point solutions that can be implemented either end-to-end or independently within an existing IT infrastructure.”

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About STS, an NSB Company

STS, an NSB Company, offers the Connected Retailer, a proven portfolio of software, services, and support that addresses the key areas of a retail enterprise: store, merchandising, sales analytics, planning, CRM, allocation and replenishment, and sourcing. Our North American headquarters is located in Montreal, Canada, with satellite offices in Atlanta, Columbus (Ohio), Dallas, Indianapolis, New York, San Diego, and Whippany (New Jersey). The NSB Group operates in Europe under the name NSB Retail Systems. Today, STS works closely with more than 350 retail customers across North America and Europe. For additional information regarding STS, an NSB Company, and our Connected Retailer portfolio, visit our website at www.nsbgroup.com .

2003 STS Systems Ltd. All rights reserved. Connected Retailer, STS, NSB, the STS logo, and certain other marks are trademarks or service marks of STS Systems Ltd. and/or another NSB Group company. Other marks are the trademarks or service marks of their respective owners.

For more information

Candice DeLuca, Public Relations, 400 Venture Drive, Lewis Center, Ohio 43035 (USA). Email: [email protected] Phone: (614) 840-1448. Fax: (514) 426-0824.

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Tracy Fairchild, Director of Communications, 2800 Trans-Canada Highway, Pointe-Claire, Quebec H9R 1B1 (Canada). Email: [email protected] Phone: (514) 426-0822. Fax: (514) 426-0824.

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