Gloucester, Mass., February 7, 2006 — TradeStone Software, the leader in global sourcing and order management solutions, today announced that the sourcing arm of European retail giant KarstadtQuelle has selected TradeStone to provide an important part of the technology backbone for its global sourcing operation. The TradeStone Unified Buying Engine will serve as the platform for KarstadtQuelle's sourcing operation, and will be augmented by the addition of TradeStone's modular applications for Product, Sourcing, Logistics, Finance, Unified Order Management and Product Lifecycle Management.

Initially KarstadtQuelle International Services AG, the international buying agent of KarstadtQuelle Group, will use TradeStone's Finance Module to streamline its financial operations. This is important because KarstadtQuelle International Services AG offers its sourcing services to other independent retailers and must comply with those retailers' unique billing and documentation requirements, as well as internal invoicing and vendor payment for goods bought on its own behalf. For example, the Finance Module will enumerate all the elements (line items) of an original order and, in turn, trigger the generation of other documents such the packing list, ASN (advance ship notice), the bill of lading, the commercial invoice and the service invoice. These documents—and the detailed information regarding carriers, shippers, country of origin, export country, import country and final destination—are essential for meeting global trading security standards and clearing customs without delay. This synchronization in the supply chain is a unique performance enhancement that speeds product to market.

"Sourcing globally is complex for any company, regardless of whether that company is located in the Americas, Europe, Asia or Africa," said Sue Welch, CEO of TradeStone Software. "A retail giant like KarstadtQuelle not only needs to carefully manage the international sourcing process, but also meet the financial demands of special regulations which require meticulous accounting and tracking. Only by integrating all the pieces can this be possible."

The implementation of TradeStone's Unified Buying Engine and Finance Module is KarstadtQuelle's first step towards migrating their entire sourcing operation to the TradeStone Suite, the first order management application to marry product planning and refinement, sourcing, and lifecycle management with logistics and finance.

"We want to offer our customers the best merchandise from around the world, with consistent quality and good prices," stated Carsten Wolff, Managing Director of KarstadtQuelle International Services AG. "Investing in the TradeStone Suite is part of our continued drive to improve our sourcing capabilities and services."

About KarstadtQuelle International Services AG
As international buying Agent operating 25 local offices in Asia, Turkey and Eastern Europe, KarstadtQuelle International Services AG offers professional buying services for sourcing consumer products from more than 60 countries. The services are offered to customers from the KarstadtQuelle Group as well as external customers, including Mail-Order Business, Department Stores, Wholesales and Specialty Stores. KarstadtQuelle International Services AG is a wholly owned subsidiary of KarstadtQuelle AG. KarstadtQuelle AG, based in Essen/Germany, is Europe's leading department store and mail order group. The KarstadtQuelle Group achieved sales of € 15.7 bill. in the 2005 financial year.

About TradeStone Software, Inc.
TradeStone Software enables retailers and manufacturers to plan, design, collaborate on and purchase goods from across the world as easily as from across the street. TradeStone's Unified Buying Engine uses Web services technology to layer across an organization's existing infrastructure while its modular software fills in buying process gaps to provide a single view, access and interaction across the entire procurement process. The first and only complete solution for global sourcing, product lifecycle management, and unified order management, TradeStone's intuitive "No Training" technology helps people throughout the supply chain to collaborate globally, enabling users to focus on speeding innovative products to market. Marquee customers include American Eagle Outfitters, The Children's Place, Deutsche Woolworth, Ocean State Job Lot, Pacific Alliance and Federated Department Stores. TradeStone Software is based in Gloucester, Mass. and can be found on the Web at http://www.TradeStoneSoftware.com.

Contact:

Tania Stockbridge
TradeStone Software
978-281-3723
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