Compliance Networks to Provide Continued Vendor Compliance Support to Combined Entity the Elder-Beerman Stores/The Bon Ton

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Compliance Networks, providers of retail supply chain management solutions, announced today that the combined entity of The Elder-Beerman Stores Corp. and The Bon-Ton Department Stores Inc. has signed a software maintenance contract with Compliance Networks to continue an existing relationship that started in 2000. As a result of Elder-Beerman's effective utilization of rCMS for the past three years, the company now plans to continue utilizing the system as a combined organization.

Compliance Networks, providers of retail supply chain management solutions, announced today that the combined entity of The Elder-Beerman Stores Corp. and The Bon-Ton Department Stores Inc. has signed a software maintenance contract with Compliance Networks to continue an existing relationship that started in 2000.

Elder-Beerman, a regional department store chain, was developing its own in-house vendor compliance system when the company was introduced to Compliance Networks' Compliance Management Solution (rCMS) in 2000. Elder-Beerman quickly recognized the value of a flexible compliance application that would evolve along with the compliance industry and help it circumvent the time and resource drain associated with the development of an in-house system. As a result of Elder-Beerman's effective utilization of rCMS for the past three years, the company now plans to continue utilizing the system as a combined organization.

"A corporate merger like this brings out one of the unique aspects of our maintenance agreement with clients," said Greg Holder, president of Compliance Networks. "We continue the same level of support during and after the merger that we had under the original agreement, and make sure it's a seamless transition for our clients. Having been in retail for many years and understanding the shortfalls of most software agreements, we've made our maintenance agreements different from most. Compliance Networks does everything from applying the upgrades to ensuring that jobs run as scheduled and that data is loaded. The only thing we do not do is manage the users running the application, and we would probably do that, too, if asked."

Compliance Networks will host the rCMS application and hardware in a full application service provider (ASP) environment, which is a major change for Bon-Ton/Elder-Beerman. "We are excited about Compliance Networks hosting the rCMS application," said James Rawlins, senior vice president of distribution for Elder-Beerman. "That is one less responsibility for our IT department to worry about, especially right now in the midst of this merger."

"During the past three years of working with Elder-Beerman," said Chris Stanley, account executive for Compliance Networks, "we have developed a deep understanding of their operations and the synergies within their organization that will ensure a painless transition. In the close relationships we develop with all our clients, we shoulder the full burden of responsibility for upgrades or changes within the client's organization."

About Elder-Beerman and Bon-Ton Department Stores

The Elder-Beerman Stores Corp. sells fashion apparel and shoes for men, women and children, along with intimate apparel, accessories, cosmetics and fragrances for women. The company also offers linens, cookware, china, gifts and furniture. On Oct. 24, 2003, Elder-Beerman was acquired by The Bon-Ton Stores Inc., a regional department store chain now operating 142 stores in 16 states under the names of Bon-Ton and Elder-Beerman.

Bon-Ton's acquisition of Elder-Beerman nearly doubled the company's size and markets with compatible secondary market stores and vendor structures, and with no overlapping markets. Its stores offer quality branded opening, moderate and better-priced merchandise in apparel, cosmetics, shoes, accessories and distinctive home fashions, as well as exclusive private-label merchandise.

Bon-Ton carves out and maintains a niche in smaller, targeted markets where it is a primary department store, attracting customers seeking fashionable merchandise at competitive prices. It combines an upscale presentation and high level of service with the convenience of local shopping.

About Compliance Networks

Compliance Networks (CN), based in Houston, TX, offers innovative supply chain solutions designed for retailers. CN's solutions are built upon the concept of "Visibility, Accountability and Predictability". CN is one of the first companies in the supply chain sector to offer a self-funding solution that is set up on a contingency basis and requires no capital investment by the client. This revolutionary approach to process improvement allows leading edge retailers to reap unprecedented savings in their ongoing supply chain operations while forgoing virtually all the risks associated with traditional software companies. Compliance Networks finds and delivers the hard dollar savings that lie hidden between daily retail operations and current merchandising and logistics controls. The retailer benefits from a low-risk, low-effort solution that can achieve significant results in as little as 120 days. For more information, visit CN's Web site at http://www.compliancenetworks.com .

For more information, contact:

Pat Beaird

501-801-0014 ext. 120

[email protected]

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