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Press Releases Thursday, January 16, 2003   
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Escalate To Power Neiman Marcus Direct`s Supply Chain Order Management

Direct to Consumer Order Management Application to Help Luxury Retailer Manage Vendor Relationships

Redwood Shores, CA - January 14, 2003 - Escalate, Inc., a leading provider of web-based supply chain and order management software for retailers, today announced that Neiman Marcus Direct has implemented Escalate Supplier(tm) 5.0 to execute Epicure shipments directly from vendor to customer.

Escalate Supplier offers a powerful, Web-based supply chain, order management and visibility solution designed to enable retailers to better manage and monitor drop ship and special orders. Neiman Marcus Direct has installed Escalate Supplier for a drop-ship product segment that spans each of the division`s brands - Neiman Marcus, Horchow, and Chef`s Catalog.

Terry Gradidge, VP Customer Service says, " With Supplier, both our vendors and associates will have access to the order status information at the same time. We believe this will significantly reduce phone calls to vendors while allowing us to provide our customers with the most up-to-date information. We anticipate improved Customer Service and productivity gains."

The Escalate Supplier product provides retailers with a complete, web-based solution for vendor collaboration, order execution, shipment tracking, inventory visibility, and reporting. The ability of Supplier to bring together all the information about orders, shipments and inventory in one place provides retailers with the ability to better manage vendor relationships and improve vendor performance.

Ms. Gradidge went on to say "We believe Escalate Supplier will give us the ability to more closely partner with our vendors to manage the process from order placement to delivery resulting in increased customer satisfaction."

"Neiman Marcus Direct is renowned for providing the highest levels of customer service within the retail industry," said Keng Lim, President and Chief Executive Officer of Escalate "We look forward to helping them work more closely with their vendors to streamline their supply chain order management processes and further enhance their customers` experience."

About Escalate
EscalateR is a leading provider of retail supply chain and order management software. Based on its unique web-based cross-enterprise order management application foundation, Escalate gives retailers an end-to-end solution for order management, fulfillment and merchandise flow management for both stores and direct to customer businesses. Using Escalate software, retailers improve order management efficiency, reduce supply chain costs and service failures, improve vendor compliance and performance, and expand assortments and vendor options without operational concerns. The Escalate applications are built on a highly scalable open platform and are J2EE-compatible. Escalate applications are available as software licenses or as a managed service. Over 200 companies use Escalate technology; customers include Williams SonomaR, Neiman MarcusR Direct, FTD.com, Fred MeyerR Jewelers, and LVMHR. Escalate is headquartered in Redwood Shores, Calif., with offices in New York and Chicago.

Product Note
In it`s latest release, Escalate 7, the functionality in Escalate Direct(tm), Escalate Order(tm) and Escalate Supplier(tm) has been reorganized. The five new application names are Direct to Customer Order Management, Vendor Management, Order Fulfillment, Logistics Management, and Returns and Reverse Logistics. Escalate Direct(tm) and Escalate Order(tm) make up Direct to Customer Order Management, while Supplier(tm) has been expanded into Vendor Management, Order Fulfillment and Logistics Management.
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