Miami, Fl. April 3, 2003 Although shipments to the overall Retail POS market were off 2%, certain segments such as Supercenters, Mass Merchants, and Casual Restaurants saw significant shipment growth in 2002 according to a new study released by IHL Consulting Group.

"Supercenters saw the greatest growth at 12%," says Greg Buzek, President of IHL Consulting Group. "Mass Merchants, driven by high replacements by Target, also had a good year with shipments up 2% against a tough comparison in 2001 where Kmart replaced nearly their entire base of terminals. Finally, American's seemingly unending appetite for eating out grew the Bar/Restaurant category as new outlets continue to be installed."

According to the study, heavy POS rollouts at Target, Wal-Mart's continued growth into the Supercenters and Casual/Family Restaurants saved a particularly tough year in most segments. Looking forward, however, the study also points out that the dynamics of the POS market actually look quite healthy going forward.

"While shipments declined, the installed base of terminals actually grew quite well," added Buzek. "Vendors that normally would focus heavily on their installed base for the bulk of their shipments were forced to seek out new business among retailers that typically use lower-end technology. As a result of these conversions and continued new store growth among Category Killers, Supercenters, and Restaurants the future is looking much more promising than the 2002 results would suggest. Although a tough year, it may end up being a blessing in disguise as we should see an increased replacement cycle of terminals for the next couple of years."

At the operating system level, Microsoft dominated the shipments with 69% of the market with Windows NT/2000/XP(50%) and Windows 9x/CE (19%). IBM's 4690 represented 17% of shipments overall but had a much higher share among Tier 1 retailers. Linux represented 4% of shipments.

IHL's Study, 2003 North American Retail POS Market Study reviews the shipments and installed base of POS terminals sold into retailers in North America. It includes market shipment, installed base, market value figures, a situation analysis for 10 retail market segments, overall trends affecting the POS market, and forecasts through 2006. This is the first of a series of studies in 2003 prepared by IHL Consulting Group in conjunction with The Association of Retail Technology Standards (ARTS).

For further information or to purchase this study, please visit the company website at www.ihlservices.com.

ABOUT ARTS

The Association for Retail Technology Standards (ARTS) of the National Retail Federation is a retailer-driven membership organization dedicated to creating an international, barrier-free technology environment for retailers. ARTS was established in 1993 to ensure that technology works to enhance a retailer's ability to develop store level business solutions and avoid situations that limit a retailers' ability to implement change while providing industry standards designed to provide greater value at lower costs. www.nrf-arts.org

ABOUT IHL CONSULTING GROUP

IHL Consulting Group is an independent business-consulting firm headquartered in Franklin, Tennessee that provides market analysis and business consulting services for information technology companies that focus on the retail industry. For more information, visit the company's web site at http://www.ihlservices.com.

CONTACT: IHL Consulting Group

JaCinda Carey, 615/591-2785 ihl@ihlservices.com