VendorNet Receives 2005 Supplier of the Year Award for Outstanding Service from World’s Largest Music Gear Cataloger and Online Retailer Musician’s Friend

Delray Beach, FL., June 6, 2006 - VendorNet, a supply chain collaboration solutions provider, today announced that it has been honored with the 2005 Supplier of the Year Award - Service Category from Musician’s Friend, an online retailer and catalog company, and the direct-to-consumer division of Guitar Center, Inc. (Nasdaq: GTRC), the largest musical instrument retailer in the world. Musician’s Friend implemented VendorNet’s Stock PO Manager software to connect with their network of over 750 product vendors streamlining bi-directional communication and purchase order management with their smallest to largest vendors.

The Supplier of the Year Award is given to associate companies that have most significantly and positively impacted the growth and profitability of Musician’s Friend. All departments within the company evaluate Musician’s Friend supplier base and submit nominations for review. Included in the evaluation are product quality, service, responsiveness to problems or enhancements, and timely deliverables.

“VendorNet received the 2005 Supplier of the Year, Service Category Award because of its excellent service, and the commitment the company made to help our Inventory Planning staff train over 750 vendors within an 8-month timeframe,” stated Jackie Thiebe, Vice President, Supply Management at Musician’s Friend. “It was an aggressive goal requiring the preparation and training of over 100 vendors per month in order to have the majority of our supplier base using this technology prior to peak season.”

VendorNet Stock PO Manager is part of the VendorNet Commerce Suite of supply chain collaboration products that electronically integrate retailers and suppliers for real-time communication of critical order, fulfillment, shipping, and invoicing information, as well as vendor compliance and performance reporting. VendorNet automates labor-intensive order transaction activities via a web-based platform to standardize and synchronize the exchange of information.

As a result of VendorNet’s technology and service contribution, Musician’s Friend saw improvements in many areas. “As new suppliers were added to the VendorNet network each month, we saw an immediate reduction in invoice errors due to VendorNet’s automated invoice matching and payment features,” Thiebe explained. “By the end of 2005, purchase order invoice errors were reduced by 53 percent. In addition, VendorNet’s technology was instrumental in our success of achieving a 93 percent Initial Line Item Fill Rate metric for the year. The system also eliminated “lost” purchase orders and reduced the time to confirm and monitor purchase orders with vendors, as well as managed purchase order changes. We realized significant efficiency gains and savings in both our Inventory Planning and Accounting departments. VendorNet is a team player with superior customer service.”

Sharon Gardner, President of VendorNet commented, “We are honored to receive the 2005 Supplier of the Year Award, Service Category from Musician’s Friend. We strive to provide each and every customer with the highest level of service possible, and we place great value in our customer’s feedback. The service award from Musician’s Friend reinforces our commitment to delivering best-of-breed products and services, and our belief that our customers are our best endorsement.”

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. VendorNet's client base includes leading retail, catalog and e-commerce companies such as Plow & Hearth/1-800-Flowers, Neiman Marcus, Norm Thompson, Swiss Colony, FrontGate, Levenger, Gevalia/Kraft, Hammacher Schlemmer, RedEnvelope, Uline, and Orvis. For more information, visit www.vendornet.com


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