Kewill Systems plc, a leading provider of business-to-business e-commerce supply chain management solutions, announces today that Tesco plc, one of the UK's largest retailers, has adopted Kewill's Internet-based supply chain trading solution, Kewill.Trade, to manage its supply chain.

Tesco is the U.K.'s leading supermarket Group, with 830 stores globally.

Currently, Tesco exchanges P.O.s and invoices electronically with its approximately 1,500 centralized suppliers that are EDI-enabled. Kewill.Trade will be used to bring online Tesco's more than 500 suppliers, who are not EDI-enabled. Under its current system, Tesco sends orders to its smaller or seasonal suppliers via their one-way EDI system. Suppliers then respond manually to these orders (i.e. advanced shipping notices, PODs and invoices) via fax, phone, email, or post. As a result, there is redundant data entry of information, causing errors, lack of visibility in the supply chain, inefficiencies, and clerical work. The size of the Tesco stores and networks make its supply chain management especially complex and efficiency particularly important.

The implementation of Kewill.Trade(TM) is expected to automate many manual processes, thereby improving efficiency, and providing additional control and visibility to Tesco's supply chain.

The system will be hosted by Kewill and Tesco's suppliers will log onto and register with Kewill.Net in order to begin interacting with Tesco electronically. With Kewill.Trade, Tesco has selected an implementation option designed to overcome the barriers of cost and complexity of electronic commerce which historically has excluded many small and medium-sized suppliers.

John Mooney, project manager of Tesco, commented today, ``It is our goal to achieve a single business-to-business process within our company, where EDI messages can be sent and received with all 2,000 of our suppliers. Our longer-term strategy of moving our supply chain into a fully interactive and easily accessible electronic medium is another key strategy for Tesco. We will not only be able bring efficiencies to the supply chain, both for ourselves and our suppliers, but will also allow Tesco to react quickly to consumer demand and bring exciting products to market more quickly.''

Bob Malley, president of Kewill E Commerce commented, ``We are delighted that Tesco has chosen to implement our products as part of a core initiative to bring their supply chain on-line. This agreement is a classic hub-and-spoke arrangement, envisaged at the time of Kewill.Net(TM)'s launch, with a major corporation actively encouraging the adoption of easily accessible, web-enabled IT solutions into its broad supplier base.''

About Tesco plc

Tesco has 646 stores and is the largest food retailer in the United Kingdom, with 15.5% of the food market. In addition Tesco operates 75 stores in the Republic of Ireland, 45 in Hungary, 31 in Poland, 8 in the Czech Republic, 8 in Slovakia, 1 store in France, 14 stores in Thailand, 2 in South Korea.

Tesco is seen as the most innovative food retailer in the market, and is committed to delivering a high standard of customer service. Tesco believes in listening to customers and offering an excellent range of high quality products at Great Value Prices.

About Kewill Systems plc

Kewill Systems plc, (www.kewill.com) the leading business-to-business provider of e-commerce supply chain management solutions, has been delivering software and services globally for 27 years. It employs over 650 people world-wide and has more than 71,000 customers. Its U.K. corporate headquarters are in Leatherhead, Surrey, U.K. and its U.S. headquarters in Marlborough, Massachusetts.

About Kewill.Net

Online visibility is critical to managing business relationships, executing business transactions, and promoting collaboration between customers, suppliers and carriers. Kewill's business portal, Kewill.Net gives trading communities access to a suite of applications and services enabling them to View, Transact, Trace and Control their goods as they move through the supply chain. All that is needed is a PC and web browser. Users have access to a range of applications including:

Kewill.View -- A suite of web-based applications that monitor and control the flow of merchandise through the supply chain by utilizing multiple message delivery mechanisms including email, fax, EDI and Web.

Kewill.Trade -- A suite of web-based applications providing procurement, fulfillment and visibility between buyers and suppliers by enabling them to electronically exchange business-critical information such as online quotations, purchase orders, order confirmations and invoices via Kewill.Net.

Kewill.Ship -- A suite of applications providing customers and suppliers with the functionality to rate, route, track and collect carton level detail (CLD).

Kewill.Receive -- Provides users with the ability to integrate CLD on delivery notification (from suppliers ) in order to automate the receiving process.

Kewill, Kewill.Net, Kewill.Trade, Kewill.Receive, Kewill.View and Kewill.Ship are trademarks of Kewill Systems plc.