RETALIX LTD.

Our robust solutions provide system resiliency and data redundancy
The retail food industry is characterized by a very high volume of customer transactions that retailers and distributors are required to process quickly
and efficiently. We believe that retailers and distributors view their POS systems as mission-critical to their operations, as these systems must be
continuously functioning to process customer transactions. The malfunction or failure of a retailer’s or distributor’s POS systems for even a few minutes
could result in substantial loss of sales, as well as significant customer dissatisfaction. Moreover, the data generated in these transactions are equally
mission-critical, and the loss of such data could significantly impair a retailer’s or distributor’s internal reporting and accounting systems. As a result,
retailers and distributors require highly robust and resilient POS solutions that will allow them to continue to operate despite system failures, as well as to
avoid the risk of being unable to process customer transactions and the risk of data loss. We have developed a software architecture designed to support the
high volume, multiple format environments of the largest food retailers and distributors and major fuel retailers, capable of supporting very high volumes
of stores and checkout lanes without risk of significant malfunction or failure. Equally important, our software architecture protects critical data through its
duplication at the server level. In case of system failures, each POS terminal can continue to operate despite the interruption of communications with the
back-office or headquarters, storing all transactions locally, to be transferred to the server level when communications are restored. We believe the
adoption of our in-store solutions in such large supermarket chains as Albertsons, Sainsbury’s and Tesco is a strong testament to the robustness and
resilience of our in-store solutions.
Our next generation ‘thin client’ architecture reduces the cost and physical footprint of IT systems
In response to retailers’ increasing demand for software solutions that are easier to use and cheaper to maintain, we have developed our Retalix
InSync Solution Portfolio based on a “thin client” architecture, using state of the art service architecture and software technologies (J2EE and
Microsoft .Net). Our “thin client” solutions allow our applications to run on remote servers with the users accessing the applications through a standard
browser. These solutions reduce the need for expensive, bulky hardware and software installations at each store location, lower an enterprise’s IT
maintenance costs and facilitate enterprise-wide integration. In addition, “thin client” architecture makes it easier and more cost-effective to upgrade
software as and when required. In addition, we are developing a next-generation version of our existing StoreLine in-store solution, called StoreLine.net,
which is based on a “thin client” architecture using the Microsoft .Net platform. This capability to provide for a “thin POS” and a “thin back office”
solution allows a choice of additional flexibility and cost savings, as part of our product suite.
Our enterprise solutions can be easily integrated with existing IT infrastructures
The modular nature of our architecture and our tools for building open interfaces to external systems, including software protocol standards such as
XML and web services, streamlines the introduction of our enterprise and in-store solutions into existing IT environments. Retailers and distributors can
purchase systems that fit their current needs and budgets, and then add additional modules as their business needs evolve over time. Our open architecture
means that our solutions are hardware neutral, capable of working with systems from most major hardware vendors, including IBM, NCR, Fujitsu, Epson,
Dell and Wincor-Nixdorf. This modular and open architecture decreases the software integration risks associated with migrating from a retailer’s existing
systems to our enterprise and in-store solutions, thereby ensuring quicker time to market. This feature also allows the retailer and distributor to make
separate purchasing decisions for the hardware, thus realizing great savings in hardware costs by buying the hardware as a standard market commodity.
Our enterprise solutions can be easily customized, localized and personalized
Large and mid-size retailers and distributors require that software products be tailored to fit their operational needs. In many cases, such a
requirement demands huge implementation efforts. Our products, especially our new Retalix InSync Solution Portfolio, were designed and built to
facilitate customer customization with reduced efforts. In addition, multinational retailers and distributors may operate in several locales or countries, and
require specific customization per locale, and in some cases personalization capabilities. We offer to meet these needs as part of our customization
capabilities. The ability to customize a complex system with significantly reduced effort and cost provides us with a significant advantage over our
competitors.
Our Growth Strategy
The principal elements of our strategy to achieve our growth objectives are as follows:
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