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Key Food Stores to Speed up Check-Out With IBM Technology


NEW YORK, NY - 30 Aug 2007: IBM (NYSE: IBM) announced today it has teamed with Man-Dell Food Stores to deploy new IBM scan-and-bag and point-of-sale technology in five Key Food locations the company owns in the New York City area.

With margins thin and customer loyalty on the line, independent grocers like Man-Dell Food Stores are searching for innovative ways to save time and create efficiencies. Leveraging customer-assisted services, like self-checkout, enables grocers to meet consumers' expectations and apply resources to other areas of their business.

Man-Dell replaced NCR ScanMaster systems with new IBM SurePOS™ 700 Series systems running the IBM 4690 operating system, and later added the powerful new "scan-and-bag" self-checkout terminals from IBM.

"IBM Self Checkout offers customers a faster, more reliable, and more flexible shopping experience," said Scott Schubert, MIS Director of Man-Dell Food Stores. "We estimate that 28 percent of our shoppers now use self-checkout on a daily basis, which proves that busy shoppers want a speedy 'in and out' experience, without dealing with long lines."

IBM, in conjunction with Premier IBM Business Partner STCR, helped Man-Dell Food Stores deploy seven IBM SurePOS 700 systems and four IBM Scan-and-Bag Self Checkouts, making it the first New York area independent grocer to offer such self-checkout. The Queens-based store chose IBM and STCR to help enable a better customer checkout experience due to the high percentage of express to mid-size orders and limited front end space. In September of 2007, Man-Dell Food Stores plans to install additional self-service machines in four more locations.

"Consumers measure service by what they can do for themselves, not by what others do for them," said Brian Tuberman, president of STCR. "Self-service technology can be a competitive asset for an independent grocer because this technology provides the consumer with autonomy which, in turn, provides a greater level of satisfaction."

The IBM Scan-and-Bag Self Checkout model was designed specifically for flexibility, ensuring that retailers can tailor the use of the system for a variety of different locations and departments. The next generation Self Checkout system boasts enhancements of improved ergonomic design, improved features for more secure currency enclosures, hardware durability for enhanced reliability, and increased flexibility to help retailers optimize throughput. For more information about IBM Self Checkout, go to http://www-03.ibm.com/products/retail/products/selfco/models.html.

The IBM installation was part of a total in-store revamp process that cleared out the NCR systems for new IBM machines running the IBM 4690 operating system, along with the four scan-and-bag terminals.

In collaboration with STCR, Man-Dell Food Stores implemented an Application Client/Server Environment (ACE) system that allowed the client to enhance SurePOS 700 features, enabling cashiers to accelerate transaction time. ACE software combines checkout support, electronic marketing, data maintenance, account management and other accounting processes in a versatile package. For instance, clerks now have access to integrated electronic "flip charts" to assist in produce lookups, and electronic help screens to help with cashier training.

About Man-Dell Food Stores:

Man-Dell Food Stores opened in 1936 with a single store in Brooklyn. The company owns nine Key Food supermarkets in the city, with locations in Manhattan, Brooklyn, Queens and Nassau counties. It is also part of the 110-store Key Food Stores Co-Operative (one of the largest food retailers in the New York City area), enabling Man-Dell to compete with A&P and other major supermarket chains in the region by pooling its buying power with other independent grocers. The company offers the Key Food private label in its supermarkets. For more information about Key Food Stores, go to www.keyfoods.com.

About STCR Business Systems, Inc.:

STCR Business Systems, Inc., headquartered in Endwell, NY, has been specializing in retail control systems since 1967. The business started selling and supporting mechanical cash registers, switched over to selling electronic cash registers, and today, the primary focus is selling computerized point of sale/retail systems. STCR sells retail systems and offers support to independently owned specialty food stores and supermarkets. They support over 600 customers nationwide. When IBM introduced the IBM Business Partner program in 1986, STCR was one of the first businesses in the world to sign up. STCR has been an IBM Premier Business Partner for over 21 years -- since 1986. For more information about STCR, go to http://www.stcr.com.

About IBM Retail Store Solutions:

For more information about IBM's full line of Retail Store Solutions, go to http://www.ibm.com/products/retail.

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