Fujitsu Transaction Solutions Inc.

Payless taps Fujitsu as preferred supplier, strategic lifecycle partner

New agreement extends GlobalSTORE contract; adds POS hardware, managed services and iPAD mobile apps

New York, NY, January 12, 2004 — Payless ShoeSource, Inc. (NYSE: PSS) and Fujitsu Transaction Solutions Inc. have extended terms of a GlobalSTORE point-of-sale software agreement announced in April of 2003. The extended agreement makes Fujitsu the preferred supplier of POS hardware, software, services and mobile applications.

Provided the pilot scheduled for this spring is successful, Payless expects to roll out Fujitsu's TeamPoS 2000 point-of-sale terminals and GlobalSTORE to almost 500 stores by the end of 2004. The retailer will also pilot Fujitsu's iPAD handheld computers designed specifically for mobile retail applications in twenty stores. Fujitsu will provide managed services including deployment and ongoing maintenance of the new systems, as well as maintenance of legacy systems in stores that are not yet scheduled for upgrades. Fujitsu also will stage, integrate and install third party equipment for wireless in-store networks that will drive the iPAD applications.

"We value our strategic partnership with Fujitsu," said Dave VonFeldt, director of information systems development for Payless. "We believe the total solution Fujitsu provides will help us reduce our costs for information systems that support critical store operations functions, while increasing customer satisfaction and retention."

Customer-engaging applications

Fujitsu's iPAD computers will run GlobalSTORE integrated with "Shoe Finder" and other applications that store associates currently perform at POS or in the back office. Payless' objective is to provide associates with customer-engaging applications that can be performed anywhere in the store using 802.11 wireless technology.

The Shoe Finder application will provide associates entrée to the back office server to access data such as lot location information, lot size quantities, and shoe style and availability at nearby stores.

"The focus of this agreement is all about in-store productivity, predicated on our ability to drive down total cost of ownership across all components of the contract," said Keith McNamara, Fujitsu senior vice president, general merchandise and software operations.

Payless ShoeSource is the largest family footwear retailer in the Western Hemisphere. The company operates more than 5,000 stores offering quality footwear and accessories at affordable prices. In addition, customers can buy shoes over the Internet through Payless.com(SM) at www.payless.com.

GlobalSTORE is Fujitsu's Microsoft Windows-based integrated retail software platform. Its retail-specific, modular architecture and rapid-development tools make GlobalSTORE easy to customize and maintain, to lower the retailer's total cost of ownership. It integrates seamlessly with customer relationship management, store systems, kiosks and in-store mobile computing. GlobalSTORE's Windows platform also supports multimedia and browser-based applications to dramatically reduce training time for store associates.

Fujitsu's iPAD features a bright, color touch-screen that works both inside the store and in bright sunlight, ideal for parking-lot sales or outdoor inventory control. It houses a powerful Intel processor and can support any 802.11b wireless LAN infrastructure. The iPAD runs Microsoft's Windows CE .NET operating system to support both XML and Voice Over IP (VoIP). These features are housed in a slim, ruggedized shell that can withstand five-foot drops to concrete.

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About Fujitsu Transaction Solutions Inc.

Fujitsu Transaction Solutions Inc. is a wholly owned subsidiary of Fujitsu Limited (TSE: 6702) and the IT "lifecycle solutions" provider for consumer transaction environments. The company collaborates with customers to relentlessly reduce their costs and improve their profitability. Fujitsu's offerings include multi-vendor infrastructure management services, point-of-sale hardware and software, mobile devices and self service systems including U-Scan. The company has some 1,500 employees in the U.S., Canada and the Caribbean. Example customers include Canadian Tire, ChevronTexaco, Hannaford Bros., H.EB., Loblaws, Nordstrom, Payless ShoeSource, Regal Cinema, Ross Dress for Less, Staples, Stop & Shop and The TJX Companies, among others. The company also has a 50/50 joint venture with Retalix Ltd. (NASDAQ: RTLX) in StoreNext Retail Technologies LLC, the No. 1 supplier of retail technology to independent grocers and regional chains.
For more information, please see: us.fujitsu.com/retailing

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