Magstar TOTAL Retail - Liquidation World Press Release

Magstar Inc. is pleased to announce that Liquidation World Inc., headquartered in Calgary, Alberta, Canada, is implementing Magstar’s fully integrated TOTAL RETAIL® enterprise management software to help Liquidation World to manage operations at its central offices, distribution centers and retail locations in Canada and the USA.

Liquidation World (www.liquidationworld.com) plays a fundamental role in addressing the ever-present imperfections of the manufacturer-retailer relationship. The company offers services that include the retail liquidation of consumer merchandise through more than 100 outlets across North America, as well as store-closure sales management.

Liquidation World solves asset recovery problems for the financial services industry, insurance companies, manufacturers and other organizations. The company opened its first retail outlet in 1986 and is now the largest liquidator in Canada, with more than 1,800 employees in outlets and offices across Canada and the United States.

Liquidation World evaluated several software vendors and chose Magstar’s TOTAL RETAIL® enterprise suite for its head office, in-store back office and point of sale (POS) requirements. The chainwide rollout of the TOTAL RETAIL® system is scheduled to be completed in early 2006.

Liquidation World’s President and Chief Executive Officer, Jonathan Hill commented that “We selected Magstar after concluding that its software is the best out-of-the-box fit for some of the unique challenges and opportunities that are associated with managing merchandise in an opportunistic purchasing environment.

TOTAL RETAIL® allows us to focus our efforts on the management of a broad array of category, sub category, class and sub class levels that will significantly enhance our insight into the historical performance of inventory and thus improve the way in which we allocate merchandise in the future. In addition, the system has particularly robust search features which will also be helpful to us in reviewing past purchasing, no matter how obscure, to determine the viability of similar items as they arise.

As well, our thorough review of references and past projects provided us with comfort that the project would proceed on time and on budget. Our experience with Magstar to this point is consistent with their reputation in this respect.”

Paul Becker, Director of Marketing at Magstar, said: "We are very pleased to be selected by Liquidation World Associates. Delivering relevant and timely data to decision makers is essential for effective management. Liquidation World will benefit with TOTAL RETAIL® integrating the activities between its central office, distribution centers and its retail locations. Functional integration of the enterprise enables effective inventory management so that you can consistently provide the right products at the right place at the right time: key to meeting consumer needs and expectations, and consequently developing brand image and customer loyalty. The standardized store systems will facilitate store support and help each Liquidation World store deal with the daily details and to make timely and informed decisions.”

About Magstar Inc.

Founded in 1985, Magstar develops and provides fully integrated, enterprise-wide retail management software and professional services to a variety of small to medium sized chain operations in the US, Canada and the Caribbean Basin.

For the fifth consecutive year, retailers selected Magstar as a top retail software vendor in the 2004 RIS News Leaderboard vendor performance survey, leading in Retail Concentration, Overall Performance, Strategic Value, Total Cost of Operation, Ease of Installation, Ease of Administration and Maintenance.

TOTAL RETAIL® integrates business processes across all operational departments and divisions: Finance, Buyers, Stores, and Operations, including warehouse/distribution, call centers and the Internet. As one application updates its information, related areas and functions are dynamically refreshed to provide consistent and up-to-date centralized information on demand.

Professional services include business consulting, work process and gap analysis, custom software development, system hardware, installation, training, and 7X24 support with remote facilities management.