Leading Eastern European Drug Store Chain Replenishes with SAF Software

Implementation of Two Systems to Automate Inventory Replenishment
–
SAF systems tap significant sales and profit potentials
– Lean
processes and cost reductions in 250 stores and in the central
warehouse
– Long-term cooperation in the expansion in Eastern Europe

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companies/Signing contract

Tägerwilen (euro adhoc) - Tägerwilen/Switzerland, January 7, 2008.
The SAF AG, which is listed in the Prime Standard of the Frankfurt
Stock Exchange (ISIN CH0024848738), and is one of the worldwide
leading suppliers of automated forecasting and ordering systems for
retailers, has signed a license agreement with one of the leading
drug store chains in Eastern Europe for the use of its order and
inventory optimization software in the client´s stores and also in
its warehouse. With this software installation, the drug store chain
in Poland will convert from manual to automated replenishment. The
SAF forecasting and ordering systems are able to forecast with great
accuracy the future demand. In doing so, it considers seasonal
influences, holidays, advertising promotions, school vacations and
other effects which might influence the sales. The system will
optimize the replenishment process, reduce costs and increase profit
both in the ca. 250 Polish stores of the drug store chain and in the
central warehouse. With the signing of this agreement, SAF continues
the expansion of its direct business in Eastern Europe.

In total, the drug store chain operates more than 500 stores in
Poland, Hungary and the Czech Republic. The company is owned by one
of the largest and most rapidly growing retail companies in the
health & beauty market in Europe. Initially, its expansion in Eastern
Europe will be supported by SAF technology. Currently, the company
replenishes in Poland on the basis of different software systems
which coordinate the inventory replenishment of the central
warehouse. The bulk of store replenishment is performed manually.

High Automation, Significant Reduction of Out of Stocks and Less
Inventory

At the beginning of 2008, SAF will implement both of its core
products, SAF SuperWarehouse and SAF SuperStore, in the central
warehouse and in the stores. "The automation of the inventory
replenishment optimizes replenishment and also the data flow between
the central warehouse and the stores," reports Dr. Andreas von
Beringe, CEO of SAF. "The use of SAF software represents a clear
competitive advantage. It significantly cuts warehouse inventory,
reduces the out of stock rate and increases product turnover." In
addition, the drug store chain will benefit from an increase in
service level and gain space for a larger assortment. On top of that,
SAF experts support replenishment both in strategic and also tactical
decision-making during routine business. The signed agreement will
already contribute to SAF sales from direct business in 2008.
Further, it is planned to support the drug store chain in the future
during its strong expansion in Eastern Europe in order to further
strengthen its competitive position through the utilization of
innovative systems.

*********

About SAF AG SAF Simulation, Analysis and Forecasting AG specializes
in the development of automated ordering and forecasting software for
retailers and industrial manufacturers. SAF deploys the demand chain
management approach, which controls replenishment planning based on
consumer demand patterns. SAF software assists users to realize
substantial cost savings and optimizes general logistics conditions
through its simulation capabilities. As a result, significant
competitive advantages are achieved along the entire value chain:
lower inventories, improved product availability, and last, but not
least, a higher level of customer satisfaction.

SAF AG was established in 1996 by Dr. Andreas von Beringe and Prof.
Dr. Gerhard Arminger. SAF shares are listed at the official market
(Prime Standard) at the Frankfurt Stock Exchange (FWB). Today, the
company employs approx. 95 people. Consolidated sales revenues for
fiscal year 2006, were approx. 13.6 million EUR with consolidated
profit of 4.6 million EUR according to IFRS statements. SAF´s
products are distributed in many European countries as well as in the
United States. The company is headquartered in Tägerwilen,
Switzerland. SAF also has a subsidiary in the United States: SAF
Simulation, Analysis and Forecasting U.S.A., Inc., Grapevine, Texas
and in Slovakia, Bratislava: SAF Simulation, Analysis and Forecasting
Slovakia s.r.o. with the focus on Nearshore-Development.

Forward Looking Statements and Estimates This information contains
forward looking statements based on assumptions and estimates of
SAF's Management Board. Although we assume the expectations in these
forward looking statements are realistic, we cannot guarantee they
will prove to be correct. The assumptions may harbor risks and
uncertainties that may cause the actual figures to differ
considerably from the forward looking statements. Factors that may
cause such discrepancies include, among other things, risks that are
mentioned in the annual report 2006. SAF does not plan to update the
forward looking statements, nor does it assume the obligation to do
so.

end of announcement euro adhoc
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ots Originaltext: SAF AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Astrid Strömer

+41 (0)71 666 79 48

astrid.stroemer@saf-ag.com

Branche: Software
ISIN: CH0024848738
WKN: A0JD78
Index: Prime All Share, Technologie All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade