9/24/03

Newgistics to Provide the SmartLabel(tm) Return Service for Frederick`s of Hollywood

Kurt Peters , Executive Editor

Lingerie Retailer Delivers Customer Convenience and Streamlines Returns Cycle with SmartLabel

AUSTIN, TX - September 24, 2003 - Newgistics, Inc., the leader in returns management solutions for direct retailers, today announced that Frederick`s of Hollywood Inc. has selected its SmartLabel(tm) service to enhance Frederick`s of Hollywood`s superior customer service and streamline the returns process. Frederick`s of Hollywood will implement the SmartLabel service for its catalog and online customers beginning this month.

"Catalog and online orders account for a very large percentage of our business, so it is very important that our returns program be both easy-to-use and efficient," said Mark Reidel, vice president of operations for Frederick`s of Hollywood. "After evaluating many return management solutions, we found Newgistics` SmartLabel solution to be the most customer-friendly and beneficial to our returns processing."

Newgistics` SmartLabel returns service allows customers to return merchandise purchased online or through the catalogs effortlessly. Customers simply detach the pre-paid, pre-addressed barcoded SmartLabel from their order summary, affix it to their package, and drop it off anywhere in the U.S. Postal Service (USPS) mail stream. SmartLabel`s dynamic barcode links the package to the customer`s invoice and provides package visibility early in the returns process. This enables customer service representatives to proactively address customers` exchange or credit needs, resulting in increased customer loyalty. The SmartLabel service includes SmartLabel OnDemand(tm), which gives customer service representatives the option to email or mail customers a replacement SmartLabel.

"The simplicity of the SmartLabel service enhances the positive shopping experience for Frederick`s of Hollywood customers and automates many of the operational tasks by providing early notification of return packages in transit and aggregating them into palletized deliveries," said Raymond B. Greer, president and CEO of Newgistics. "Adding SmartLabel demonstrates the heavy emphasis that Frederick`s places on quality customer service. In turn, Frederick`s will see an increase in customer satisfaction and loyalty."

Newgistics` SmartLabel service enables retailers to streamline the entire product returns cycle to help them gain operational efficiencies, drive customer loyalty and increase profitability. Typically, retailers see a 70% usage rate of the SmartLabel service within 120 days of launch.

About Frederick`s of Hollywood

Since 1946, Frederick`s of Hollywood has been the leading innovator in the lingerie industry, creating many of today`s top lingerie styles such as the push-up bra and thong panty. Customers can shop for Frederick`s of Hollywood merchandise at its 167 stores, via catalog and online at http://www.fredericks.com/.

About Newgistics

Newgistics, Inc. (www.newgistics.com) is the leader in returns management for the direct retail industry. By combining technology and logistics, Newgistics solves the two main issues facing direct retailers in managing returns: improving the customer`s return experience and driving direct retailer`s operating efficiencies. Our market-leading service, SmartLabel(tm), has managed millions of packages for leading direct retailers including J.Crew, Neiman Marcus, Eddie Bauer and Aerosoles among others. Together with the U.S. Postal Service and logistics leaders R.R. Donnelley Logistics and USF Processors, Newgistics has created the most extensive returns management network in the industry.

Topics:

Consumer behaviour, Customer experience management, Electronic commerce, Online shopping, Returning

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