Khimetrics Announces First Intelligent Advertising Marketing & Planning (AMP) Solution

Combines AMP With Optimization and Forecasting; Takes Guesswork Out of Promotion Planning and Speeds Process for Turning Out Customer-Relevant Ad Campaigns

Khimetrics, Inc., leader in customer demand solutions, announces Khimetrics Advertising Marketing & Planning™ (AMP), an intelligent promotion execution system combining optimization, forecasting and analytics within a single workflow framework. The layout and execution software assets were purchased from Flow Systems, a division of Mediagrif Interactive Technologies Inc. (TSX: MDF), and is being fully integrated with the Khimetrics Customer Demand Solution Suite™.

Retailers face ever-increasing demands to optimize merchandising efforts and secure more customers within a highly competitive environment. The weekly circular is often the cornerstone of a retailer's marketing strategy. Yet the complexity of creating promotions and the guesswork in selecting the right combination of items and offers due to limited analytics make it difficult to meet customer needs and achieve revenue, profit and price image targets. To address this challenge, retailers require innovative solutions that extend brand identity and reach more customers in more ways while reducing the time and cost it takes to publish new promotions.

"By emphasizing consistent workflow and interactive analytics as core strengths, Khimetrics is well positioned to extend the retail promotion planning model into efficient execution (and a strong RLPM strategic position) with its acquisition of Flow Systems technology." Source: Scott Langdoc, The AMR Alert on Khimetrics Goes AMP: Acquires Flow Systems Technology To Expand Retail Promotional Planning Footprint, May 17, 2005.

Khimetrics AMP enables marketing planners, merchandisers and advertising staff to collaborate and efficiently deliver more effective and profitable promotions. Unlike other AMP products that address only portions of the promotion process, retailers can plan, optimize, forecast and execute campaigns with a single workflow environment. In addition, merchandisers can leverage Khimetrics' advanced analytics for real-time "what if" analysis within the layout process to ensure they are executing what they set out to achieve. No other solution today provides an end-to-end automated system to address which products and offers should be in the ad, how may versions should run, where and in what format, and then translate that into the physical ad.

"We understood the pressing need that retailers have to increase promotion effectiveness and therefore, sought to complement our promotional modeling and optimization with execution -- the Flow Systems solution was superior to anything we saw, functionally and technically," said Brent Lippman, Khimetrics CEO. "The addition of AMP addresses this pressing need and enables customers to streamline advertising production across multiple channels and zones while optimizing promotion performance."

Comprehensive, Flexible & Scalable

With Khimetrics AMP, retailers can understand their shoppers' purchasing patterns and produce customer-relevant promotions to maximize return. The solution automates the planning, creation, approval, production and repurposing of advertising and other promotional material. As a result, retailers can be more nimble and have greater flexibility to react to changing market conditions. The Product Information Management (PIM) and workflow automation, along with decision support tools to optimize promotion performance are the foundation of the solution. The comprehensive features include:

--  Layout Management: Makes it easy to select and assemble, preview,
    revise and approve promotions
--  Workflow Management: Facilitates collaboration across the organization
--  Versioning: Streamlines management of concurrent promotions in
    multiple price zones and languages
--  Product Information Management (PIM): Centralizes digital assets and
    product information in a single scalable database and promotes reuse
--  Campaign Management™: Incorporates multiple channels and formats --
    print, catalogs, inserts, email, signage, kiosks and web
--  Optimization: Identifies best combination of items, offer types and
    promotional prices to meet objectives
--  "What-if" Analytics: Measures impact of promotion prior to execution
--  Forecasting: Calculates and displays an accurate item-level forecast
    based on the offer combined with promotional product mix and placement
    

Khimetrics Advertising Marketing & Planning is available today. In addition, Khimetrics Global Services provides business consulting and implementation services to ensure rapid adoption and quick return on investment.

Customer Demand Solutions

Khimetrics has established itself as a global leader in customer demand solutions across grocery, mass merchandise, drug, specialty and convenience retail segments, supporting any retail strategy ranging from Hi-Lo to EDLP. Khimetrics Customer Demand Solution Suite™ is the retail industry's first complete pricing, promotion and markdown optimization solution to manage sales and profits throughout the entire merchandise lifecycle. The company helps retailers create sustainable competitive advantage without sacrificing profitability while simultaneously improving Price Image™. Customers consistently generate a positive return on investment in less than twelve months. The company is ranked #24 on the 2004 Inc. 500 list of fastest growing private U.S. companies and named one of Fortune Magazine's 2005 "25 Breakout Companies."

About Mediagrif: Mediagrif Interactive Technologies Inc. (TSX: MDF) is a world-leading operator of e-business networks and provider of complete e-business solutions. Mediagrif's e-business networks allow buyers and sellers within specific industries to source, purchase or sell products and to exchange documents more efficiently using the Internet. Mediagrif operates 12 networks, including industry leaders The Broker Forum (www.brokerforum.com ) Power Source On-Line (www.powersourceonline.com ), Telecom Finders (www.telecomfinders.com ), Global Wine & Spirits (www.globalwinespirits.com ) and Polygon (www.polygon.net) in the jewelry industry. The company also owns MERX (www.merx.com), the exclusive provider of e-tendering services to the federal government of Canada, and is a leading provider of government bid aggregation services and e-procurement services in the U.S. Headquartered in Montreal, Mediagrif through its subsidiaries has various offices in Canada and the United States. For more information on Mediagrif please visit us at www.mediagrif.com or call 1(877)677-9088.

About Khimetrics: Khimetrics, Inc., based in Scottsdale, Ariz., is dedicated to helping its customers improve business performance through a better understanding of customer demand. The company's Customer Demand Solutions uniquely combine a single technology framework that addresses the entire product lifecycle -- price, promotion, markdown and clearance -- with retail-centered methodologies and domain expertise. Khimetrics top-tier customers include Albertsons, PETsMART, Lowe's, 7-Eleven, ShopKo Stores, Pamida and Big Y Foods. For more information call 480.609.2833 or visit www.Khimetrics.com.

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