Press and Analyst contacts: For Immediate Release

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Ron Margulis
RAM Communications
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S&H GREENPOINTS HELPS RETAILERS DELIVER ENHANCED VALUE TO SHOPPERS THROUGH TECHNOLOGY-BASED LOYALTY SOLUTION

Customer loyalty program uses proprietary technology to boost the bottom line of retailers and offer customized rewards to customers in their stores.

SAN DIEGO-February 3, 2002 - S&H greenpoints, the Salem, Mass.-based leader in rewards marketing, is deploying proprietary technology to help retailers to enhance the customer engagement process. By using this system, supermarket retailers can identify key shopper information, allowing them to offer real-time, in-store promotions via greenpoints, S&H's branded rewards currency.

The S&H greenpoints program is currently offered to the customers of SHOP 'n SAVE, Lowes Foods, Foodtown and Carter's Food Centers, with additional retailers to be announced by mid-year of 2002. These retailers, operating about 300 stores, are using S&H's powerful data engine to deliver a total loyalty marketing solution.

"Our retail partners are finding greater success with our system than other loyalty programs because it uses technology that is transparent to the customer and adds value to the shopping experience," explained Ray O'Brien, Senior Vice President and Chief Customer Officer of S&H greenpoints, speaking here at the company's booth at the Food Marketing Institute's annual Marketechnics conference.

"The S&H program works both with existing customers and to attract new customers into the stores and then keep them all coming back to spend a greater portion of their money. The technology used to accomplish this feat is designed to yield optimal results for the retailer by targeting promotions appropriate to the shopping level of the customer."

The digital reinvention of America's beloved Green Stamps as S&H greenpoints offers customers a way to earn rewards for their everyday purchases. Shoppers receive 10 greenpoints for every dollar they spend (excluding beer, wine, services and taxes). They can also earn bonus greenpoints on selected items throughout the store.
Additionally, greenpoints can be earned at the S&H shopping portal at greenpoints.com, which features more than 100 premiere merchants, including Eddie Bauer, the Disney Store, and The Sharper Image. Other partners include Hertz, Earthlink and Sprint. There's also an S&H greenpoints Visa card that members can use to earn greenpoints anywhere Visa is accepted.

S&H's "InfoPilot" technology enables customization of the rewards shoppers receive based on the number of times they visit the stores, dollars spent or the categories of products they shop for. Checkout lanes are equipped with a dedicated printer that instantly outputs offers and account statements which are personalized for each shopper. The InfoPilot network-based system allows all information to reside in a central real-time database, allowing the customer to go to any checkout lane in any store and receive personalized information.

"The S&H greenpoints InfoPilot system is both easy to use and sophisticated. It is able to interface with virtually all Point-of-Sale systems, making it an ideal solution. S&H maintains the database and provides promotion delivery, technical support and reports," said Ron Neese, Sr. Vice President & CTO.

"The system delivers specially-tailored promotions based on individual customer demographics, purchase history and shopper loyalty level, enabling retailers to offer true customer-specific marketing. It offers hundreds of promotion types, including multi-tier electronic discounts at POS, online point accumulation, reward and redemption, promotions over time, multiple purchase requirements and offers based on spending levels. It is also scalable, so it can deliver a particular promotion to a few individuals, one or two stores, or throughout an entire chain."

The technology features of the S&H greenpoints InfoPilot program include the following:

• Each checkout is equipped with a dedicated printer that provides instant output in the form of coupons, promotions and recipes, rewards, account statements, sweepstakes and notes from the manager.
  
• The program is a complete solution, offering everything needed from data capture and analysis, to promotion delivery.
  
• The system can provide a suite of easily accessible standard and custom reports on customer shopping habits.
  

"We continue to add functions to the program so our retail partners can add value to the shopping experience of their customers. By being proactive in our R&D process, we can give these retailers the continual competitive advantage they need to thrive in the marketplace," said Neese.

About S&H greenpoints
S&H greenpoints is the digital reinvention of S&H Green Stamps and The Sperry & Hutchinson Company, Inc., which has been in the rewards business for more than 100 years. In early 1999, S&H was reacquired by a group of investors led by a member of the founding Sperry (Beinecke) family to launch the company into the digital economy with www.greenpoints.com and S&H greenpoints, a branded digital rewards currency. The greenpoints program operates on the proprietary S&H InfoPilot technology. (S&H, greenpoints, and Green Stamps are registered service marks of The Sperry & Hutchinson Company, Inc.)

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