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RETALIX LTD.

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create and sustain customer interest;<br />

focus on household spending over time;<br />

optimize value through customer segmentation;<br />

simplify campaign management;<br />

manage supplier funding;<br />

develop built-in cost controls; and<br />

develop personalized marketing programs.<br />

Warehouse Management Solutions<br />

With our acquisition in January 2004 of OMI International, a provider of supply chain execution and warehouse management systems for the retail<br />

food industry, we are able to offer a comprehensive set of warehouse management solutions designed for complex, multi-facility warehouses and<br />

distribution centers. We are progressing in developing the Retalix InSync Solution Portfolio, which will be the next generation of these products, adding<br />

new technology and integrating them with other offerings in the Retalix product suite. Our suite of supply chain management applications includes:<br />

TRICEPS Warehouse Management<br />

TRICEPS Warehouse Management is a warehouse management system that utilizes sophisticated wireless radio frequency, or RF, and voice<br />

activated technology to automate location and task management. Through the use of distribution control features and labor management tools, TRICEPS<br />

enables retailers to manage complex warehouse facility operations efficiently, increase warehouse service levels and reduce operating expenses. TRICEPS<br />

functionality includes optimal storage management, order fulfillment, product replenishment notification, labor forecasting, task management and<br />

advanced real-time inventory control.<br />

BICEPS Purchasing Management<br />

BICEPS Purchasing Management is an automated procurement system that handles “just-in-time” turn, promotion, forward buy and<br />

invoice/purchase order reconciliations. BICEPS enables retailers’ purchasing departments to identify and purchase products according to item and category<br />

criteria, and thereby to identify opportunities to improve inventory quality and profit margins. In addition, BICEPS allows retailers to view and manage<br />

transactions, costing, movement and forecasting data and to make immediate decisions for margin improvement. BICEPS functionality includes online<br />

continuous replenishment, inventory tracking and evaluation, recommended ordering, multiple product sourcing, forecasting and online accounts payable<br />

reconciliation.<br />

PROMPT Invoice Matching<br />

PROMPT Invoice Matching is a fully automated invoice reconciliation system that integrates a retailer’s accounts payable function with purchasing<br />

and receiving, allowing confirmation of invoices in advance of payments to suppliers. Through the use of electronic data interchange, or EDI, technology<br />

and electronic funds transfer, or EFT, technology, PROMPT enables the immediate reconciliation of invoices and allows the value of any missing items to<br />

be deducted from a vendor’s invoice. In this way, PROMPT allows retailers to manage invoice reconciliation electronically, thus saving the time and effort<br />

required to reconcile invoices manually and improving gross margins.<br />

MDS Yard and Dock Management<br />

Through the use of RF identification tags, MDS Yard and Dock Management allows retailers to monitor all yard arrivals and departures and track<br />

each trailer or container by location, movement, status and availability. This visibility into the movement of goods through their yards allows retailers to<br />

manage yard resources more efficiently, eliminate trailer wait time, improve resource and product scheduling and direct incoming goods to optimal storage<br />

locations.<br />

ABS Billing and Order Management<br />

ABS Billing and Order Management is an automated product ordering solution that enables retailers to process and fulfill customer orders. ABS<br />

provides retailers with the flexibility to determine the most efficient way to source products through the support of multiple shipping options.<br />

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