Wal-Mart, the world’s largest retailer, has contracted Swisslog, a leading provider of supply chain solutions, to design and implement a new distribution center (DC) concept for cold and frozen groceries. With the first DC near Houston, Texas, Wal-Mart introduces a new generation of DC with a higher level of automation within its Grocery Distribution Network. The DC increases the flexibility in receiving as well as shipping of goods and enhances Wal-Mart’s already high customer service. The Wal-Mart contract boosts Swisslog’s position as one of the leading providers of distribution solutions in the retail market and enforces its strength as a leading global provider of supply chain solutions.

“Swisslog has proven to be the right solution provider for Wal-Mart for our grocery distribution,” says Rollin Ford, Wal-Mart Sr. Vice President of Logistics. “We selected Swisslog for their previous experiences, their leadership, creativity, and fundamentally sound approach to being Wal-Mart’s integrator, and their aggressiveness in fielding the best global team to attack our unique Grocery Distribution challenges.”

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The global retail industry is one of Swisslog’s core customer segments, because success in retail today demands constant improvement of the distribution and supply chain cost structure as well as delivery times and customer service. “With Swisslog’s solutions we can help our customers to get there,” says Charles Teissonniere, President of the Swisslog Logistics Solutions division.

Swisslog’s North American sales in 2000 were around 20% of the group’s total sales, and substantial growth is planned over the coming years. “Swisslog is building up its position as a global supply chain partner for designing and implementing best practice solutions including best-of-breed software and innovative automation technology. The first contract with Wal-Mart and in the US retail industry is a very important step, clearly demonstrating Swisslog’s global expertise. This year, Swisslog is investing in its growth platform by building up competence world wide and developing new activities such as consulting, global industry segment marketing and outsourcing services. These investments are important for fast growth in the coming years,” says Juhani Anttila, CEO of Swisslog.

Swisslog Holding AG

Swisslog is a global provider of integrated supply chain solutions that cover the entire value creation process from procurement and production to delivery. Swisslog’s solutions optimize the intra- and inter-company flow of information and materials, significantly increasing its customers’ flexibility, reaction capability, productivity and quality of service while minimizing logistics costs and tied-up capital.

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Based in Buchs/Aarau, Switzerland, Swisslog currently employs 3,700 staff in 25 countries around the globe. During 2000, Swisslog increased its sales by 28% to CHF 925.0 million (EUR 592.9 million) and its EBITA by 44.6% to CHF 72.6 million (EUR 46.5 million). The Group’s parent company, Swisslog Holding AG, is listed on SWX Swiss Exchange (Security Number: 1 232 462, Telekurs: SLOG, Reuters: SLOGn.S).

Publication of Swisslog’s Half Year Results: 21 August 2001

Wal-Mart Stores, Inc.

With annual sales of $191 billion, Wal-Mart Stores, Inc. operates more than 2,600 discount stores, Supercenters and Neighborhood Markets, and more than 480 SAM’S CLUBS in the United States. Internationally, the company operates more than 1,080 units. Wal-Mart employs 962,000 associates in the United States and 282,000 in other countries. The company’s securities are listed on the New York and Pacific stock exchanges under the symbol WMT. Last year Wal-Mart associates raised and contributed more than $190 million to support communities and local non-profit organizations. FORTUNE magazine has named Wal-Mart the third “most admired” company in America and one of the 100 best companies to work for in the United States, and Americans named Wal-Mart the company they think of first in supporting local causes and issues, according to Cone, Inc. More information about Wal-Mart can be located on-line at http://www.walmartstores.com. Information about Wal-Mart’s Good.Works. community involvement is available online at http://www.walmartfoundation.org.