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WHERENET ADDS TCHIBO; INTERNATIONAL RETAILER USES WIRELESS LOCATION AND MOBILE COMMUNICATION SYSTEM TO CUT COSTS AND INCREASE EFFICIENCY AT EUROPE’S LARGEST LOGISTICS HUB

From Trailers to Fork Lifts to Pallets, WhereNet Provides Constant Visibility of Critical Assets at Tchibo Distribution Center in Germany; System Helps Eliminate Shipment Errors and Expedite Processing of More Than 6000 Pallets of Consumer Goods Every Day

SANTA CLARA, Calif.—March 30, 2004— WhereNet Corp., the leader of wireless solutions for tracking and managing enterprise assets, announced today that Tchibo, a large international retailer, has deployed the standards-based WhereNet ® real-time locating system (RTLS) and wireless local area network (LAN) for mobile communications to help process more than 6000 pallets of consumer goods every day. The WhereNet system is installed at BLG Logistics’ 120,000-meter facility in Bremen, Germany – the largest and most modern logistics hub in Europe. As the exclusive user of this state-of-the-art facility, Tchibo relies on the WhereNet system to expedite the throughput of more than 100 daily outbound trailers and ensure the accuracy of every shipment as the system verifies that the right pallet is delivered to the right dock door at the right time. The projected cost savings realized by preventing incorrect shipments from entering the delivery chain will enable Tchibo/BLG Logistics to achieve a complete return on its WhereNet investment in less than one year. Tchibo also realizes additional benefits from WhereNet’s technology, including better customer service, more efficient use of labor, and increased yard throughput.

“Because of our ‘a new experience every week’ commitment where we offer unique promotions and new product bundles every week, we inherently operate a highly dynamic and time-sensitive logistics environment,” said Kay Middendorf, managing director at Tchibo Logistik GmbH. “We considered traditional RFID technology, but ultimately chose WhereNet as it is the only technology on the market today that can provide a complete solution for our daily logistics challenges. When every second counts and one mis-routed shipment can have significant cost implications across our supply chain, we have no margin for error. WhereNet’s 100% accurate, real-time data capture capability gives us a proven system for verifying that every pallet is loaded onto the right truck to ensure on time shipment departures.”

“With our high-performance palletizing robots capable of forming pallets at minute intervals from loose cargo on the inbound side, we needed an equally efficient technology to manage the outbound side to maintain a high-velocity distribution environment,” said Dipl. Ing. René Kaschel, Manager Technic & IT, BLG Logistics. “WhereNet enables us to automate the final few steps of our complex logistics processes, ensuring that every one of our 100 or more daily outbound trailers has the correct load and departs on schedule every day. Our Bremen facility is a technology showcase that will help drive additional business for us across Europe as more and more customers like Tchibo embrace a just-in-time logistics model.”

Whether tracking the whereabouts of an inbound trailer of loose cargo that just arrived from Asia, ensuring that a fork lift operator retrieves the correct pallet from the right conveyor, or allowing an employee to send a text message alert from his mobile terminal, Tchibo is leveraging the complete functionality of the WhereNet wireless infrastructure, which combines both location and WiFi-certified mobile communication capabilities in a single integrated system. With an array of 12 WhereNet wireless locating access points and 86 WherePort devices mounted indoors and outdoors at its distribution center, BLG Logistics has complete coverage of its entire 120,000-meter facility.

Deployed in less than 90 days, the WhereNet system provides the technology backbone of Tchibo’s high-capacity, complex logistics operation. In conjunction with robotic palletizing equipment and a sophisticated conveyor system, WhereNet helps automate the movement of all incoming and outgoing freight, thus enabling precise work planning, dock door scheduling, and optimization of every shipment. Specifically, the WhereNet wireless location and communication system enables Tchibo to:

• Direct inbound trucks to the correct dock ensuring maximum unload performance and minimizing the chance of mishandling of the shipment
• Improve pallet to truck load time
• Ensure that the right pallet is loaded into the right truck
• Enhance process security by reducing forklift traffic through the elimination of incorrect loads

"Our deployment with Tchibo not only signifies our growing presence across Europe, but also a significant milestone as it marks the first time that our technology has been used for pallet-level tracking in a distribution environment,” said Matt Armanino, senior vice president, WhereNet. “Just as we have demonstrated in the marine terminal industry, we can track, locate and manage untagged assets by associating them with other WhereNet-enabled devices, time-stamped events, and enterprise information systems. This is a natural evolution of our technology that brings a finer level of granularity to real-time enterprise inventory and in the process, drives greater cost savings and operational efficiencies for high-velocity distribution centers.”

About Tchibo

• Established in 1949, the name Tchibo has stood for freshness and quality in the coffee market for over 50 years. The original mail order coffee company has grown into a multinational enterprise, active in many more sectors than just traditional coffee retailing. Over the years, Tchibo has consistently expanded its range and number of sales channels. Its strong brands guarantee variety and quality worldwide. Tchibo is offering its customers a unique retailing trio of roasted coffee sales, consumer goods and coffee bars. Today, Tchibo’s international multi-channel business model serves more than 53,000 point of sales every week. Under the slogan “a new experience every week,” Tchibo presents its customers fresh coffee products and a weekly changing assortment of non-food merchandise under the company’s own brand, TCM. Tchibo is transformed into a specialist shop, if only briefly. Customers have to act fast, because the offer is limited. This stimulates a “need”, a phenomenon proven that most purchases are in fact spontaneous. For more information, visit the Tchibo Web site at www.tchibo.com.

About WhereNet Corp.
A Zebra Technologies company, WhereNet is the first company to deliver a single wireless location and communication infrastructure that reliably and cost-effectively manages valuable mobile resources and delivers a complete return on investment within 6-12 months. Based on patented, standards-compliant technology resulting from a collective 100+ years of development, the WhereNet active RFID, real-time locating system solutions enable companies such as APL, BMW, Ford Motor Company, and NYK Logistics and facilities like Tobyhanna Army Depot to reduce inventory, lower operating costs, and improve operations. The company has received the Henry Ford Technology Award; was recognized for strong ROI by Computerworld; was ranked among the top 10 in the InfoWorld 100; and has been recognized as a wireless innovator by Forrester Research, Global Logistics & Supply Chain Strategies, Plant Engineering, and Supply & Demand Chain Executive magazines. WhereNet is headquartered in Santa Clara, California, and has offices throughout the United States and Europe. For more information, visit the WhereNet Web site at www.wherenet.com, or call 408-845-8500 (in the U.S.) or +32 3 286 84 50 (in Europe).

WhereNet is a registered trademark and WhereTag is a trademark of WhereNet Corp. All other brands, products, or service names are or may be trademarks or service marks of their respective owners.