TradeStone Revenue Up 50 Percent Year-to-Date

Prediction to Production' Strategy Fuels Strong Growth of Merchandise Lifecycle Management Solutions for Retailers

Gloucester, Mass., October 21, 2008 -- TradeStone Software, the retail industry's leading provider of private label and global sourcing solutions, today announced the Company is capping off a successful third quarter that saw some of the largest retailers in the world Go-Live with TradeStone's Merchandise Lifecycle Management suite. The quarter also had TradeStone customers Macy's, Urban Outfitters, American Eagle Outfitters, Guitar Center and European hypermarket giant Auchan share their success and merchandise lifecycle management strategies at an interactive and educational user conference, TradeStone STARS 2008. Additionally, TradeStone experienced a significant increase in headcount and continued award recognition from the retail industry.

"This third quarter success is the culmination of a banner year that has seen us grow and maintain the largest active retail customer base in the world," said TradeStone Software CEO Sue Welch. "The innovation being seen at our customer Go-Live sites is a true testament to the flexibility and rapid adoption of TradeStone solutions across the retailers' organization and out to the supplier community. We are also pleased with the success of TradeStone STARS, where our customers discussed how they use TradeStone to battle margin erosion through the development of private label brands, eliminate markdowns by getting trend-right merchandise to stores, reduce operating costs through planning links and move the business process closer to the point of origin. As we move toward to end of the year, we are confident that our Best Practice processes and 'Prediction to Production' strategy will continue to bring our customers significant value and lead to an even more successful fourth quarter!"

TradeStone Implementations Fuel Fifty Percent Year-Over-Year Growth

The retail industry's ability to rapidly deploy TradeStone's Merchandise Lifecycle Management solutions fueled a 50 percent revenue growth for the third consecutive year as new customers signed on and current customers expanded their TradeStone footprint.

In the third quarter of 2008, TradeStone's Merchandise Lifecycle Management suite was successfully implemented at major retailers worldwide. Shoppers Drug Mart, one of Canada's largest drug store chains, deployed TradeStone's Super Purchase Order capability to give them more scalability and detail to their orders. Shoprite, the largest retailer in Africa, is now live with TradeStone Sourcing to increase their bottom line and introduced a supplier registration process that enhances their ability to manage suppliers and improve the payment accuracy. Apparel giant American Eagle Outfitters expanded the TradeStone footprint currently used to develop and source merchandise, manage orders and production, and collaborate with suppliers to add Factory Compliance capability and to give users greater flexibility and visibility into their tracking and critical path management. Macy's has gone live with TradeStone's Showroom, Sourcing, Product and Order Management modules to create line lists for collections, gain earlier visibility into each product category, enable their product portfolio development and provide more detailed information on their Purchase Orders. Pacific Sunwear added TradeStone Sourcing to source by color, create what-if cost scenarios and streamline their ordering process. In Phase II of their implementation, Quiksilver is using TradeStone to work more directly with their vendors and maintain better documentation of their goods. Additionally, implementations at Auchan, GPC, Lowe's, Urban Outfitters and Wilkinson are expected to Go-Live in Q4.

Headcount year-to-date increased 35 percent with key hires within the Executive team as well expansions in the Product, Development and Services areas.

TradeStone Industry Award Recognition

TradeStone was recently selected as a Finalist for the Retail Systems Awards 2008, being held in London at the end of October. The Retail System Awards are among the premier awards for the retail technology industry. TradeStone's innovative work at JD Williams led to the finalist position in the "Supply Chain Solution of the Year" category. The radical results realized at the leading UK catalog retailer include double digit growths in customer choices, increased sales and a significant reduction in returns.

About TradeStone Software, Inc.
TradeStone provides merchandise lifecycle management software that enables the world's most successful retailers to bring innovative and highly profitable private label products to market at record speeds. TradeStone's Merchandise Lifecycle Management suite, which consists of TradeStone PLM for Retail (TM), TradeStone Global Sourcing (TM), TradeStone Quality Management (TM), TradeStone Global Order Management (TM) and TradeStone Supplier Management (TM), deliver radical results - 200 to 400 basis points to the bottom line; sales increases of 3 - 6 percent; average consumer spend increases of seven percent; and sell through at margins of 78 percent. TradeStone marquee customers include American Eagle Outfitters, Boots, Circuit City, Deutsche Woolworth, Guitar Center, Kohl's, Macy's, Novi Footwear, NBrown Catalog Company, Pacific Sunwear, Regatta, Shoprite, The Children's Place and Urban Outfitters. TradeStone Software is headquartered in Gloucester, Mass., with offices in Atlanta, Bangalore, Hong Kong and London and can be found on the Web at

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