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Press Releases Tuesday, January 20, 2004   
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Catalyst Supply Chain Modules Help Saks, Inc. Streamline Operations at its World-Class Retail Distribution Center

New CatalystConnect™ Supplier Link expected to reduce Saks’s labor costs by $500,000 per year

Milwaukee, WI -- Catalyst International, Inc. (OTC: CLYS.OB), a global provider of supply chain execution (SCE) solutions, and Saks Inc. have successfully deployed three Catalyst supply chain modules that have enabled the leading retailer to drastically cut labor costs and optimize yard operations.

Saks has deployed CatalystConnect, Supplier Link, CatalystCommand, Yard Management and CatalystCompass Alerts at its world-class regional distribution center in Alabama, which serves retail stores along the eastern seaboard. The facility had already been using Catalyst’s warehouse management and supplier quality applications to support flow-through distribution in which approximately 95 percent of cartons move directly from receiving to shipping untouched by human hands.

“Supplier Link has allowed us to significantly reduce labor costs for carton handling. Once we implement this at all six of our distribution centers, we estimate our savings will exceed more than half a million dollars a year,” said Ronnie Johnson, Vice President of Logistics for Saks. “Plus, with Yard Management and Alerts, we are able to optimize yard operations visibility and utilize each of our docks to their fullest capability. As a result, we now process most inbound shipments in less than three hours.”

With CatalystConnect Supplier Link, Saks gives their small suppliers who do not have electronic data interchange (EDI) a no-cost way to generate ASNs, UCC labels and necessary packing slips via the Internet. By improving ASN-compliance on their shipments, Saks greatly reduces labor expenses for handling these non-compliant products or “exceptions,” which are three times more costly than a properly documented carton. Additional benefits from this module include standardized labeling and shipment documentation, streamlined receiving, and generating “goodwill” among suppliers by eliminating penalty chargebacks.

CatalystCommand Yard Management enables Saks to optimize yard, dock and warehouse performance by providing greater visibility into assets and inventory in parked trailers. It also gives advance notice of the content of incoming trailers, which facilitates more efficient scheduling to dock doors as well as the flow of product through the distribution center and directly onto outbound trailers. In addition, this module enables Saks to use RF printers in the yard to create labels and closely monitor high priority inbound shipments.

The CatalystCompass Alerts module further enhances the communication capabilities of both Yard Management and Supplier Link. The yard management alerts improve throughput in the yard and at the docks by providing advance notification of available doors, unload times that exceed limits and other relevant information. Supplier alerts enhance collaboration between Saks and its suppliers. For example, it will notify both when a vendor sends an ASN or tries to process an order that is not entered into the system.

“Saks has been a great customer and key partner for Catalyst, and we’re especially pleased that the company continues to achieve significant bottom-line benefits from our SCE solutions,” said Jim Treleaven, Catalyst President and CEO. “Through its innovative efforts, Saks shows that it shares our vision of -- and commitment to -- building the adaptive supply chain of the future.”

Saks plans to implement all the Catalyst SCE solutions deployed at its Alabama facility in another US-based facility in February.

About Saks
Saks Incorporated operates Saks Department Store Group (SDSG) with 241 department stores under the names of Parisian, Proffitt`s, McRae`s, Younkers, Herberger`s, Carson Pirie Scott, Bergner`s, and Boston Store and 11 Club Libby Lu specialty stores. The Company also operates Saks Fifth Avenue Enterprises (SFAE), which consists of 60 Saks Fifth Avenue stores and 53 Saks Off 5th stores.

About Catalyst
Catalyst International, Inc. (OTC: CLYS.OB) delivers software and solutions that enable companies to optimize the performance of their enterprise supply chains. Catalyst is the only resource that combines 24 years of industry leadership in warehouse and logistics software development with an in-depth understanding of ERP systems. Catalyst has provided successful SCE solutions for customers around the world, including Boeing, Brown Forman, Office Max, Osram Sylvania, Panasonic, Rayovac, Reebok, Subaru, and The Home Depot. It is headquartered in Milwaukee, WI and has offices or representatives in the UK, Italy, France, Mexico and South America. For more information, call toll-free 800-236-4600 or visit www.catalystinternational.com.

Contact: Ruta Hunter
Phone: 414-430-1440
email: rhunter@catalystinternational.com

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