Price Chopper Supermarkets Selects Industri-Matematik VIVALDI Store Replenishment Software

Initiative Directed at Increasing Sales and Customer Loyalty By Improving On-Shelf Product Availability

MT. LAUREL, N.J.--Oct. 8, 2001--Industri-Matematik International Corp. (NASDAQ:IMIC) today announced that Price Chopper Supermarkets, a major grocery chain in the Northeast United States, has selected its VIVALDI(TM) software to manage store replenishment for over 100 supermarkets. Price Chopper will use VIVALDI Store Replenishment(TM) software to reduce out-of-stock product levels on store shelves to improve customer service and increase sales.

With the VIVALDI Store Replenishment application (VSR), Price Chopper stores will leverage a combination of retail sales forecasts, point-of-sale information, and store inventory levels to generate replenishment orders that are matched with product available from warehouses. VSR will enable Price Chopper to maintain an accurate, perpetual inventory of products flowing to store locations based on customer demand, reducing overall inventory levels and improving gross margins.

"Industri-Matematik has demonstrated both the industry knowledge and technical expertise to meet the replenishment needs of grocery chains like Price Chopper," said Tom Nowak, Chief Information Officer at Price Chopper. "VIVALDI Store Replenishment will help us more accurately forecast consumer demand and communicate this demand to the warehouse as well as achieve better visibility into how inventory is used and when it needs to be replenished. These capabilities mean we can reduce back-room inventory levels and increase inventory turns by ordering what is required to meet anticipated consumer demand rather than what is needed to just fill the store shelf."

According to Steve D`Angelo, President of Industri-Matematik`s Americas operations, "Price Chopper has a strong history of implementing innovative technical solutions to address strategic business problems. It has a visionary approach in linking consumer demand and replenishment processes to better serve customers while also reducing inventory levels. The retail industry as a whole has been focusing more and more on accurate store level replenishment so we are very excited about the market potential of VSR. Price Chopper is a forward-thinking organization so we expect much success in this relationship."

VIVALDI Store Replenishment software will be integrated with other Price Chopper business applications both at the store level and headquarters. In stores, the software will connect with point-of-sale (POS) systems to capture real-time sales information. Additionally, it will integrate with back-door receiving systems (including warehousing) to manage changes to stock status based on inbound receipt of goods to the store. At headquarters, VSR will be integrated with Price Chopper`s central warehouse management system and order delivery systems.

Industri-Matematik VIVALDI retail solutions enable grocery, specialty hard goods and direct merchant retailers to implement new logistics practices to gain competitive advantage while achieving an outstanding return on investment.

VIVALDI retail solutions target distribution-intensive supply chain operations and compliment merchandising and store operations applications. The products support multi-channel strategies, helping "bricks and mortar" retailers achieve world-class fulfillment and customer service in both traditional and e-business operations. Industri-Matematik applications also deliver the back-end distribution capabilities Internet-based retailers need for fast, reliable logistics and warehouse processes.

    About Industri-Matematik

Industri-Matematik International Corp. provides high-performance supply chain and customer service software. Its VIVALDI(TM) software delivers customer relationship management, fulfillment, replenishment and supply chain event management capabilities for retail, wholesale/distribution, logistics service provider and manufacturing operations. VIVALDI helps companies achieve a Zero Inventory/100 Percent Visibility business model by replacing inventory with information to improve collaboration within a trading community and speed the movement of goods across a supply chain. Industri-Matematik`s customers include market-leading companies such as AstraZeneca, Ahlsell, British Airways, Campbell Soup, Canadian Tire, Carlton & United Breweries, Hakon Group (Ahold), FedEx Corp., Kellogg`s, Schenker-BTL Starbucks, Sun Microsystems, Telia, TNT Express, Tele1 and Warner/Elektra/Atlantic as well as Internet businesses including CoShopper.com and Electronic Business Partners (EBP).

"VIVALDI"and "VIVALDI Store Replenishment" are trademarks of Industri-Matematik International Corp. Other product and company names may be the trademarks of their respective owners.

The statements contained in this release that are not historical facts may contain forward-looking information with respect to the plans, projections or future performance of Industri-Matematik and further versions of its software products, the achievements of which involve certain risks and uncertainties, including, but not limited to, product demand and market acceptance risks, the effect of economic conditions particularly in its target markets, the impact of competitive products and pricing, product development, commercialization and technological difficulties and other uncertainties detailed in Industri-Matematik`s filings with the Securities and Exchange Commission, particularly its Annual Report on Form 10-K filed in July 2001.

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CONTACT:
Industri-Matematik
Richard Cardozo
856-793-4487
rica@im.se

or

Industri-Matematik Public Relations
Porter Novelli Convergence Group
Albie Jarvis
617-450-4300
albie.jarvis@pnicg.com

or

Industri-Matematik Investor Relations
Lippert/Heilshorn & Associates
John Heilshorn
212-838-3777
john@lhai.com