Excelligence Learning Corporation Builds Intelligence Into Managing Dropship Orders With VendorNet

Monterey, CA., December 9, 2002 - Excelligence Learning Corporation (NASDAQSC: LRNS), a retailer of school supplies, today announced it is the first specialty retailer in the industry to automate supplier communications through Internet-based supply chain technology. Powered by web-based supply chain collaboration technology from VendorNet, this solution augments the price advantage Excelligence offers with faster delivery and improved customer service by completely automating order processing, tracking, and invoicing between Excelligence and its dropship suppliers.

"One of our goals is to offer our customers superior products at the best prices possible. That makes efficiency a must for all of our business processes," said Kelly Crampton, vice president and general manager of Discount School Supply at Excelligence. "We knew as soon as we reviewed VendorNet's solution that it would bring significant cost savings and improved efficiency on multiple levels. It eliminates cumbersome manual processes for both us and our suppliers, minimizes our inventory requirements, provides real-time visibility to order status and vendor performance, improves customer satisfaction, and allows us to more easily extend our dropship product selection."

VendorNet Dropship Manager is part of VendorNet's suite of supply chain collaboration products that electronically integrates retailers and suppliers for real-time communication of critical order and invoicing information. VendorNet automates labor-intensive order transaction activities via a web-based platform to standardize and synchronize the exchange of information between retailers and suppliers.

Excelligence chose a phased implementation process to bring its suppliers online with VendorNet. The first two phases are complete with all suppliers expected to be VendorNet enabled by February 1, 2003. In addition to implementing VendorNet Dropship Manager, Excelligence plans to leverage VendorNet Stock PO Manager to realize additional cost savings and operational efficiencies for bulk inventory shipments to its distribution centers.

"Based upon the success we are already achieving with VendorNet Dropship Manager and the ease of implementation, it's a natural progression to move forward with like improvements to our in-house stock operations," stated Crampton. "Both products will allow us to easily expand our supplier networks to offer our customers a better and more diverse product selection."

"Excelligence is focused on efficiency, scalability and intelligence, core principals delivered by VendorNet Commerce Suite," added Sharon Gardner, president at VendorNet. "We developed this system to bring real-time intelligence to retailer/supplier communications that have traditionally been encumbered by manual processes. With VendorNet, Excelligence can closely align itself with its suppliers to reduce costs, expand sales opportunities, and improve customer service, ultimately benefiting Excelligence, its suppliers, and its customers."


About Excelligence Learning Corporation
Excelligence Learning Corporation is a developer, manufacturer and retailer of educational products to child care programs, preschools, schools, and consumers, focusing on children from infancy to 12 years of age. With proprietary product offerings, a multi-channel distribution strategy and extensive management expertise, the Company helps to further children's education and to reinforce the connection between learning at school and at home. The Company is composed of two business segments, the Early Childhood Division and the Elementary School Division. Excelligence Learning Corporation is headquartered in Monterey, California. www.excelligencelearning.com


About VendorNet
Vendornet delivers web-based supply chain management solutions to multi-channel retailers enabling real-time collaboration with suppliers. Its flagship product, VendorNet Commerce Suite establishes a powerful foundation for solutions that dramatically improve supply chain processes, reduce costs, and strengthen retailer/supplier relationships. Its open and flexible platform enables retailers to electronically link to suppliers regardless of their level of sophistication. VendorNets' client base includes leading retail, catalog and e-commerce companies such as Levenger, Cornerstone Consolidated Services Group, Hammacher Schlemmer, Sensational Beginnings, TigerDirect, CompactAppliance.com, and The Wine Enthusiast Company. For more information, visit www.vendornet.com


Contact:

Excelligence Learning Corporation
Pauline O'Keefe
781-329-2269
pokeeffe@excelligencemail.com


VendorNet
Sharon Gardner
561.392.6280
sgardner@vendornet.com