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OracleŽ Retail Warehouse Management System Underpins Tesco Global Supply Chain

NATIONAL RETAIL FEDERATION 95th ANNUAL CONVENTION AND EXPO, NEW YORK 16-JAN-2006 - Oracle today announced that Tesco, one of the world`s largest global grocery retailers, has successfully deployed Oracle(r) Retail Warehouse Management System within several of its fresh and ambient distribution centers across Europe and Southeast Asia. Forming part of the Tesco-In-A-Box strategy, Oracle Retail Warehouse Management System supports a standardization of supply chain practices across the international business and is responsible for a steep change in distribution center productivity and capability. Oracle Retail Warehouse Management System is now fully operational in Korea, Malaysia, Thailand, Hungary, Poland and Slovakia with further implementations planned over the next 18 months.

Tesco first deployed Oracle Retail Warehouse Management System at its new ambient distribution center in South Korea. With a requirement to distribute up to 2 million cases across 20,000 SKUs per week, the aims were to strip out costs from the supply chain, optimize transport through large range capabilities via one site, and create a "vanilla" implementation to become the basis for all further implementations internationally. A combination of strong base functionality and Tesco-specific development by Oracle Retail, has provided Tesco with a solution that is now a basis for common processes and operations across its international distribution centers.

"As businesses scale you cannot rely on direct-to-store deliveries," commented Tesco`s Program Manager, David Briggs. "Tesco created a set of centralized processes to automate, manage and integrate replenishment and distribution and worked with Oracle Retail to integrate these into the new warehouse management system. Where possible, Tesco tried to use a consistent execution team to simplify the change management process."

The first implementation of Oracle Retail Warehouse Management System in a fresh produce distribution center went live in Gyal, Hungary in September 2004. Fresh goods have unique handling characteristics so Tesco created all internal processes from scratch. Successful implementations and go-lives have taken place at fresh and ambient distribution centers in Poland, Korea, Thailand and Slovakia in 2005. Tesco has also opened additional centers in Malaysia.

"The Oracle Retail Warehouse Management System is a key enabler both financially and functionally for developments in Tesco international business," said Oracle Retail Vice President of EMEA, Tarik Taman. "The automation and centralization of many supply chain processes has achieved key operational and financial improvements, and is expected to continue to generate value with further deployments across Europe and Asia."

About Oracle Retail

Oracle Retail provides retailers with a single source for the best merchandising, supply chain, store systems, optimization and information technology solutions. Oracle Retail solutions provide multi-faceted and cross-channel information at all points of service, enabling retailers to make precise decisions and focus on what matters most -- the customer. For more information, visit www.oracle.com/retail.

About Oracle

Oracle (NASDAQ: ORCL) is the world`s largest enterprise software company. For more information about Oracle, visit our Web site at http://www.oracle.com/. Trademarks Oracle, JD Edwards, and PeopleSoft are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

Contacts:

Gretchen Mather
Oracle
+650.877.7273
gretchen.mather@oracle.com

Beth Axon
jd marketing
+44.20.8297.5388
betha@jdmarketing.co.uk

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