IBM Self Checkout Systems 600 and 800 Series models offer flexibility with cash and cashless configuration options

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1 IBM Canada Ltd. Announcement A , dated September 18, 2007 IBM Self Checkout Systems 600 and 800 Series models offer flexibility with cash and cashless configuration options Description...2 Product positioning... 4 At a glance New IBM Self Checkout systems models include: IBM Self Checkout Systems 600 and 800 Series running Microsoft WEPOS, the market leading retail-optimized operating system on the lane. Cashless hardware configurations, providing retailers with more options and flexibility. IBM Self Checkout Systems Back-Office System Server (BOSS), Model BW3, running Microsoft 2003 Server Customers have the flexibility to deploy both cash handling and cashless models in the same store. An IBM Checkout Systems BOSS, Model BW3, running Microsoft Windows 2003 Server is required for each store. Overview IBM Retail Store Solutions continues to leverage the leadership of IBM in retail point of sale. The launch of the new IBM Self Checkout Systems 600 and 800 Series models extends that leadership into the self service realm. These innovations include industry-leading self checkout software and hardware models that are designed and built in a wider array of retail store formats. Retailers look to IBM as the industry leader for providing choice of service to their consumers through self checkout solutions. Statement of Direction withdrawal Effective September 18, 2007, IBM is withdrawing the Statement of Direction for the IBM Self Checkout system announced on June 26, The statement being withdrawn is as follows: Compact, secure, single-bag model will be available, providing retailers with a smaller footprint system for greater flexibility This announcement fulfills the hardware requirements of Hardware Announcement A , dated June 26, Key prerequisites Refer to the Description section. In addition, refer to Software Announcement A , dated September 18, Planned availability date IBM Canada Ltd. Announcement A IBM is a registered trademark of International Business Machines Corporation 1

2 October 19, 2007 Description IBM Self Checkout systems offer proven end-to-end self checkout solutions, based on retail-hardened ergonomic design and a best-of-breed software platform, backed by comprehensive support and consulting services. New cashless self checkout systems models increase options to optimize the front-end checkout experience, while saving retailers money. The rise of electronic payment is evident around the world. IBM is offering IBM Self Checkout Systems 600 and 800 Series models that will be available in cashless configurations, while still taking advantage of the existing modular hardware design and various bagging or belt options. Retailers now have more choices on how to configure the front-end of their stores with cash, cashless, or an appropriate mix of both solutions, depending on their end-user demographics and payment preferences. The IBM Self Checkout modular design meets the needs of the market from the perspective of both the users (shoppers) and the retail customers of IBM. The modular design addresses the following usability needs in the following ways: Greater ease of use; logical intuitive workflow All devices reachable from one location Tendering devices located between display and belt/bagging area All payment devices located in same area above the counter Currency sensor and reminder messages when bills are left behind Signature capture and coupon box easier to see and reach Bagging Increased bagging area From the retailer's perspective, the new modular design addresses: System PC, security controller, and UPS on pull-out tray Less cash handling Easier loading coins poured directly into the hopper Smaller retail friendly cash/notes cassettes Increased coin capacity Six bin coin hoppers Four times greater capacity than current solution Three levels of security Key access to the main panels ATM-level security Note and coin dispensers enclosed completely by steel enclosure IBM Canada Ltd. Announcement A IBM is a registered trademark of International Business Machines Corporation 2

3 Second key needed to enter note and coin dispensers Lockable note cassettes (not a standard feature) (called currency device locks) The self checkout core module contains: IBM SurePOS system unit IBM SurePoint 15-inch display Bill and coin acceptors and dispensers Coupon deposit box Customer-furnished equipment IBM SureMark printer (optional) Transaction awareness light Proximity sensor Signature capture device (optional) Customer-furnished equipment Integration with a retailer's existing devices is seamless. This enables: Consumers to interact with the same devices no matter which lane they choose Employees to encounter the same equipment throughout the entire store Retailers to maintain a consistent configuration of peripherals Customer-furnished equipment includes: Installed by IBM prior to shipment Scanner/scales PIN pads Installed by customer after shipment Electronic marketing Wireless bar code scanners Customer-furnished lane lights Mobile Terminal, Symbol MC70 hardware Bagging configurations IBM Self Checkout solutions provide the flexible options retailers need to match specific in-store requirements. IBM Self Checkout software IBM Checkout Environment for Consumer-Service (hereafter referred to as CHEC) Version 6 software supports the latest IBM Self Checkout Systems 600 and 800 Series models, available in cash handling and cashless configurations. The CHEC Client Application and BOSS Application are separately orderable from the hardware. It is the responsibility of the customer or integrator to do the installation of CHEC Back-Office Application and the CHEC Client Application software, as these software products are not shipped installed on the IBM Checkout Systems 600 and 800 series models or BOSS BW3 model. In addition, refer to Software Announcement A , dated September 18, 2007, for more details and the availability of language and currency support availability. IBM CHEC V6 offers greater control in how retailers build, run, and support the self checkout solution and improves reliability through streamlined POS integration. Retailers will now be able to significantly speed time to pilot and rollout for self checkout by taking advantage of IBM's open architecture, leveraging industry-leading middleware and toolsets. The new self checkout IBM Canada Ltd. Announcement A IBM is a registered trademark of International Business Machines Corporation 3

4 solution includes a Software Developer Toolkit to help retailers customize and differentiate their customer experience from the competition. This software allows retailers to configure the base software solution and customize according to their unique customer requirements through extensible Markup Language (XML) extensions to their environment. This software solution offers manageability, utilizing new systems management tools and functions of the IBM Remote Management Agent (RMA), which has been integrated into the solution. Now retailers can use IBM Director to centrally manage their systems, which helps them achieve greater system up-time for more throughput. The IBM Self Checkout systems solution is designed to use IBM Director for enterprise management. The customer or integrator must separately order IBM Director to fully utilize the Remote Management Agent functions. For more information on IBM Director, refer to Summary of new models IBM Self Checkout systems models (running Windows WEPOS on the lane) Machine type 4845 models with cash components Express Plus 2 bag w/security Model 612 Express Plus 3 bag w/security Model 613 Express Plus 6 position bag carousel Model 616 Full Lane (Belted) Model 810 Machine type 4845 cashless models (running Windows WEPOS on the lane) Cashless Express Plus 2 bag w/security Model 602 Cashless Express Plus 3 bag w/security Model 603 Cashless Express Plus 6 position carousel Model 606 Cashless Full Lane (Belted) Model 800 M/T 4845, Back-Office System Server (BOSS) Model BW3 (Running Windows 2003 Server) Back-Office System Server Includes: IBM SurePOS system unit Keyboard Mouse 17-inch CRT Built-in UPS Provides system management and update functions, including: Automated report generation Software distribution Security database management Quick lookup screen manager Mobile Terminal software for handheld devices, allowing remote monitoring and control of some lane functions, including age verification and error messaging. Product positioning IBM Self Checkout solutions are positioned to accommodate the needs of a wide variety of retail segments and store formats with a flexible product line that allows retailers to customize the offering to their unique front-end configuration and store volume needs. The modular solutions are intended for traditional lane-based retail environments, such as grocery stores, mass merchandisers, warehouse clubs, and home improvement centres. These solutions provide a wide variety of bagging options to meet the footprint, transaction sizes, product variety, and security these segments require. IBM Canada Ltd. Announcement A IBM is a registered trademark of International Business Machines Corporation 4

5 All solutions are designed to be intuitive, easy-to-use solutions, which help enable retailers to improve customer satisfaction, reduce costs through flexible labour management, and protect profitability by minimizing shrinkage. The self checkout solutions function with retail-proven software integrated to each customer's POS to ensure error-free operation and ease of use for shoppers and front-end staff. Trade-marks SurePOS, SurePoint, SureMark, and POWER are trade-marks of International Business Machines Corporation used under license by IBM Canada Ltd. Microsoft and Windows are trade-marks of Microsoft Corporation. Other company, product, and service names may be trade-marks or service marks of others. This announcement is provided for your information only. For additional information, contact your IBM representative, call 800-IBM-4YOU, or visit the IBM home page at: IBM Canada Ltd. Announcement A IBM is a registered trademark of International Business Machines Corporation 5