RETALIX LTD.

Enterprise Headquarters Solutions: Suite of software tools that provides large supermarket and convenience store chains and major fuel retailers
with a comprehensive, modular solution which centralizes operation and management of their enterprise-wide and back-office activities such as product
and price planning and management, promotions, merchandising, inventory management, direct store delivery management, receiving and ordering, and
reporting and analysis. Our enterprise solutions also provide sophisticated customer management tools, enabling a wide variety of personalized and
targeted promotions and loyalty card-based marketing techniques. For the grocery retail market our main offerings are the in-store and headquarters
software acquired with TCI Solutions. For the fuel and convenience store markets our main product is our Microsoft .Net-based HQC (headquarters
solution for convenience store) product.
Supply Chain and Warehouse Management Solutions: Suite of supply chain execution and warehouse management software solutions that provides
retailers and distributors with a range of applications designed to help them manage complex, multi-facility warehouses and distribution centers. These
applications include warehouse management and optimization, automated procurement, merchandising, order management, invoice reconciliation and yard
and dock management. Our supply chain execution and warehouse management systems consist of TRICEPS (Transportation, Receiving, Inventory
Control and Productivity Systems) Warehouse Management, BICEPS (Buyers Inventory Control Effecting Profits and Services), Purchasing Management,
PROMPT Invoice Matching, MDS Yard and Dock Management, ABS (Advanced Billing System) Advanced Billing and Order Management, and
DemandAnalytX for optimized demand forecasting and order optimization. We added these solutions to our product suite in January 2004 through our
acquisition of OMI International. Our new Retalix InSync Solution Portfolio will consolidate these offerings into a single product portfolio.
Food Distribution Enterprise Resource Planning Solutions: An ERP suite of supply chain execution and warehouse management software solutions
that provides food and foodservice distributors with a complete solution to run their business. We added this software to our portfolio with the acquisition
of IDS in 2005, and it will be part of the Retalix InSync Solution Portfolio. This suite of products includes modules that provide master data management,
purchasing, ordering, billing, light warehouse management, rebates, accounting, electronic data interchange, or EDI, tradeshow management, and other
features. This suite also includes products that provide: a full featured warehouse management package for foodservice, convenience store or grocery
distribution; an advanced buying package for foodservice, convenience store and grocery distribution; PC based software to assist sales agents of
foodservice, convenience store and grocery distributors in their work while visiting customers; a web based ordering portal for retailers ordering from a
foodservice, convenience store or grocery distributor; and a handheld solution for distributors.
ASP and Supplier Solutions: Our StoreNext solutions, tailored to smaller chains and independent grocers, enable smaller establishments with limited
IT resources to enjoy the benefits of our headquarters and back office applications through an ASP model, which we host and is accessible over the web or
private data lines. We also offer collaborative solutions that provide retailers and their suppliers with the ability to exchange data and collaborate
electronically on key supply chain and merchandising decisions in order to achieve greater efficiencies throughout the supply chain. We anticipate that
revenues relating to these solutions will account for a growing portion of our overall revenues in future periods. Although the overall impact on us in the
near term will be modest, we believe that revenues from these solutions will be an important source of revenues to us in the longer term.
Our product suite is organized by the three principal parts of a food retailer’s operations: the retail store, the headquarters or enterprise, and the
warehouse and distribution center, as well as the distributors’ solutions. The following table briefly describes our main products and their respective
features and functions and target markets. A more detailed description is set forth below the table.
Product Description / Features Technology Platform Target Markets
In-Store Solutions
Retalix StoreLine • POS and front office solution
• Keyboard or touch
• Highly configurable
• Multi-language, currency and tax
• High availability and resilience
• Hardware neutral
• Supports multiple types of POS formats
– grocery, fuel, QSRs
• Client server, Windows operating
system
25
• Supermarkets and grocers – All
Tiers