Jacuzzi®, Spa Division Leverages VendorNet Dropship Manager To Expand Sales Potential of its Retailers Nationwide

Delray Beach, FL., June 5, 2005

VendorNet™ a supply chain collaboration solutions provider, today announced that Jacuzzi®, Spa Division has implemented VendorNet Dropship Manager to manage its expanded network of suppliers.

Jacuzzi, Spa Division's recent launch marked the first phase of a two-phase project to offer outdoor living accessories. VendorNet provided the web-based technology solution to automate bi-directional order communication with a new network of dropship suppliers. It also enabled testing new products without the inherent inventory risks, and eliminated inventory-carrying costs.

Craig Smith, Director, Sales Support at Jacuzzi, Spa Division explained, "We were looking for a complementary business model that would allow us to grow our business and the business of our valued retailers, but adding new products presented a number of issues. Basically, we needed a technology solution that would overcome the complexity of managing all of our sales channels. We decided on an ASP model for order management using OrderMotion(TM), with an integrated VendorNet backend web portal to manage the dropship supplier network."

With the combined solution of OrderMotion and VendorNet, Jacuzzi, Spa Division has established an infrastructure that allowed it to launch the initiative, a catalog and e-commerce site offering practical and luxury accessories to make backyards and spas a therapeutic haven of relaxation. The infrastructure sets the foundation for the next phase of the launch, which will bring Jacuzzi, Spa Division's nationwide dealers more directly into the VendorNet network thus allowing them to participate in a unified consumer-direct strategy.

"The entire concept was a very appealing way to boost sales, communicate more efficiently with our customers, and begin to leverage the potential of our databases. The reality however, was that this may not have been a viable opportunity financially if it weren't for technology like VendorNet. It eliminated our warehouse space dilemma, minimized the amount of new product we needed to stock, and established an easy-to-use business process for managing the entire dropship operation from order processing and shipping, to all of our accounting functions. We were forging unfamiliar ground with these new channels, but VendorNet had the right product and assigned the right resources to ensure not only a successful launch, but also ongoing expansion," stated Smith.

"We are pleased we could provide a technology solution that allowed Jacuzzi, Spa Division to grow its business while minimizing its risks. We look forward to working with Jacuzzi, Spa Division on phase two which will bring its dealers online to fully implement its consumer-focused strategy," added Sharon Gardner, President at VendorNet.

About VendorNet

VendorNet delivers web-based supply chain management solutions to multi-channel retailers enabling real-time collaboration with third-party suppliers and all corporate fulfillment channels including stores. VendorNet Commerce Suite establishes a powerful foundation for solutions that dramatically improve supply chain processes, reduce costs, increase sales, and strengthen cross-channel inventory collaboration. VendorNet's clients include Neiman Marcus, David's Bridal, Guitar Center, Spiegel, The Swiss Colony, Home Decorators Collection, FrontGate, CompUSA, Nine West, and Orvis. For more information on VendorNet, visit www.vendornet.com

Contact:

VendorNet, Delray Beach
Louisa Rupp
954-767-8228
lrupp@vendornet.com