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Supermarket Retailer Giant Eagle Implements Eatec Solution to Reduce Shrink and Enhance Profitability

FOR IMMEDIATE RELEASE

Emeryville, CA, February 21, 2003 - Eatec Corporation today announced supermarket retailer Giant Eagle, Inc., implemented its enterprise back-office solution, EatecNetX, to enhance the management of its foodservice operations in 52 supermarkets. Eatec is planning to deploy the solution in an additional 52 stores in the spring of this year.

Giant Eagle Inc., ranked 22 on Forbes magazine's largest private corporations list and recently named Progressive Grocer's Retailer of the Year, is one of the nation's largest food retailers and food distributors with more than $4.4 billion in annual sales.

"We selected Eatec's enterprise solution based on its ease of use, ability to interface with our legacy systems via an XML gateway and its sales forecasting capabilities," said Giant Eagle Senior Vice President of Information Services, Bob Garrity. "Their leading enterprise technology, paired with their superior functionality, is of paramount importance in a supermarket environment."

EatecNetX interfaces with Giant Eagle's legacy systems, including point-of-sale (POS), corporate warehouse, in-store receiving and production scales, thereby eliminating redundant data entry. Upon importing POS sales data, EatecNetX depletes inventory and renders per department profit analysis reports. Purchase orders are created in EatecNetX and sent to the warehouse and to outside suppliers. Upon shipment from the warehouse, an electronic invoice is sent to EatecNetX, eliminating the need for manual receipt at the store level. As items are produced in the prepared foods and bakery departments, labels are printed by the production scales. The production scale interface lets Giant Eagle employees know exactly how many items are produced in these departments. EatecNetX also interfaces with handheld terminals enabling employees to record shrink while on the store floor.

With the EatecNetX solution, Giant Eagle is able to use historical sales data to forecast product movement by day part. Detailed production worksheets and purchase requirements can then be generated from the forecast. According to Garrity, "This functionality facilitates just-in-time production, minimizing overstocking and reducing shrink. In our original pilot environment, our trial results reduced shrink by 15 percent."

"Giant Eagle's use of EatecNetX is a testament to the powerful technology and professional services that Eatec is able to provide to the supermarket industry," said Peter Marguglio, president of Eatec.

EatecNetX will be demonstrated at Eatec's booth #2048 at Marketechnics 2003 at the Dallas Convention Center in Dallas, Texas from February 23-25, 2003.

About Giant Eagle
Founded in 1931, Giant Eagle, Inc. has grown to be the number one supermarket retailer in the region with 124 corporate and 89 independently owned and operated stores throughout western Pennsylvania, Ohio, north central West Virginia and Maryland. Further information can be found at GiantEagle.com.

Company Information
Eatec Corporation is a leading provider of enterprise back-office solutions and services for the hospitality and foodservice industries. EatecNetX, Eatec's web-centric software solution, helps organizations reduce costs and improve operational efficiencies, resulting in a quick return on investment. Eatec clients include supermarket foodservice, restaurant chains, hotels, resorts, casinos, stadiums and arenas, convention centers, universities, theme parks and airline caterers. For more information, visit our web site at www.eatec.com or contact Eatec at 510-594-9011 or by e-mail at news@eatec.com.

Contact:
Leslie Pullen, Marketing Manager
Eatec Corporation
Phone: 510-594-9011, ext. 207
Fax: 510-594-9091
E-mail: news@eatec.com

Rob Borella
Director, Corporate Communications and Sports Marketing Giant Eagle
Phone: 412-967-3637

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