PRESS RELEASE For further information please contact: Jovene Chua – Marketing Communications, ASEAN Phone: +65 6398 3984 Email: [email protected] Web: www.dematic.asia Date Tuesday, 7 February 2012

Dairy Farm’s Distribution Process Upgrade Is Supplied By Dematic’s Innovative Solution Using Vocollect Voice

Outstanding results from proof-of-concept sealed the decision for live adoption in , followed by other Asian markets by the end of the year.

Dematic, Pacific’s leading integrator of voice-directed order fulfilment in logistics and distribution applications, together with Vocollect, a business unit of Intermec, Inc. (NYSE:IN) and the world leader in voice-enabled solutions for mobile workers, today announced the successful completion of Dairy Farm Singapore's pilot trial for Vocollect Voice, conducted as part of it's regional logistics improvement strategy to modernise its business. This initiative produced impressive proof-of-concept results, and Dairy Farm has developed an implementation roadmap for Vocollect Voice across the region, starting with Singapore in early 2012.

“Dematic has been implementing voice solutions globally and in Asia Pacific for over a decade, helping to deliver some tremendous results for our customers in a range of sectors including , wholesale & FMCG where accuracy, productivity and speed are essential. With the hands-free, eyes-free operation and real time wireless connectivity, we have seen some outstanding productivity and accuracy improvements at Dairy Farm. This is an ideal technology for Dairy Farm’s picking operations, and it is no surprise that the voice picking technology has been selected for wider deployment across their organisation,” said Michael Bradshaw, Director, Integrated Systems, Dematic South East Asia.

"Vocollect engages our customers right at the beginning by developing a deep understanding of their unique challenges, and this is no exception for Dairy Farm," said Vance Lau, Vice President and Managing Director, Vocollect Asia Pacific. "By assisting them with this pilot trial, both Vocollect and our technology partner, Dematic, are able to sync our understanding towards their business motivations and drivers, thereby providing our extensive warehouse and industry experiences to tailor a solution for their immediate as well as future needs."

The Dairy Farm Group, which operates over 5,250 , hypermarkets, health and beauty stores, convenience stores, home furnishings stores and restaurants under well- known local brands in the Asia Pacific region, has total annual sales exceeding US$9 billion for 2010. Dairy Farm run significant warehousing and distribution operations, and is currently looking at process and technology innovation to improve the productivity and accuracy of their operations.

Dematic S.E.A. Pte Ltd 10 Eunos Road 8, #09-01A Singapore Post Centre Company No.: 200517085E Singapore 408600 Phone +65 6398 3980

www.dematic.asia

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PRESS RELEASE

Date Tuesday, 7 February 2012

"We wish to modernise our logistic operations and standardise our operations across the region, and have determined that a combined WMS and picking operations upgrade was necessary to achieve long-term cost savings. Dematic and Vocollect were selected for their joint track record of voice picking implementations. Their excellent support and technical expertise has made this pilot trial a tremendous success,” said Eric Van Der Merwe, Senior Manager, Group Supply Chain Systems, The Dairy Farm Co. Ltd.

"The picking process will begin its overhaul this year with Vocollect Voice, and this chosen technology is the blueprint for progressive implementation and standardisation across the different countries and retail banners," he added.

Proven Results One of the retail formats in Singapore was selected for this pilot trial, due to the need for frequent replenishment of small but high value products like cosmetics and health supplements, which are particularly sensitive to human error, damages or loss.

The pilot trial ran for 3 months and the format experienced a multitude of benefits during the period, including: • Productivity and accuracy improvements in the order of 30% and 35% respectively. • High levels of user acceptance and adoption across a workforce with diverse ethnic backgrounds and a wide range of English proficiency levels. • Fast and easy training. • Real time management of information to support KPI monitoring, with reporting tools to provide greater visibility. • Improved worker motivation with the introduction of new technology and tools to enable staff to work more effectively.

With the pilot trial over, the decision has been made for full implementation of voice picking for the specific format in Singapore. Eric expects the technology will deliver a fast return on investment for this retail banner and other banners in the Dairy Farm group as they are converted from paper-based to voice-directed picking.

Moving forward, this model of implementation will be adopted in other countries so that the benefits of voice can be experienced. Plans are currently in progress to progress the rollout to other countries.

Pilot Trial Fast Facts - Dairy Farm's voice-directed distribution pilot was set up by Dematic for Dairy Farm, using Vocollect Voice. - The solution consisted of Vocollect Talkman T5 Mobile Computing Devices and Vocollect SR Series Headsets. - System integration with the Infor Warehouse Management System (WMS) - Over 15 staff trained to use voice for order picking. - Macro and individual performance results consolidated from operational data, store order audits, and operator feedback.

Further information: Dematic S.E.A. Pte Ltd, 10 Eunos Road 8, #09-01A Singapore Post Centre, Singapore 408600. Tel: +65 6398 3980. Fax: +65 6398 3999. www.dematic.asia

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Date Tuesday, 7 February 2012

About Dairy Farm Dairy Farm is a leading pan-Asian retailer. At 30th June 2011, the Group and its associates operated some 5,250 outlets; employed over 81,000 people and had total annual sales in 2010 exceeding US$9 billion.

The Group operates supermarkets, hypermarkets, health and beauty stores, convenience stores and home furnishings stores under well-known local brands, including: • Supermarkets – in , Taiwan and , ThreeSixty and Oliver’s The Delicatessen in Hong Kong, Jasons MarketPlace in Singapore, Hong Kong and Taiwan, Cold Storage in Singapore and , Giant in Malaysia, and , Shop N Save in Singapore, Hero in Indonesia, and Foodworld in India; • Hypermarkets – Giant in Malaysia, Indonesia, Singapore and Brunei; • Health and beauty stores – Mannings in Hong Kong, and , Guardian in Malaysia, Singapore, Indonesia and Brunei, and Health and Glow in India; • Convenience stores – 7-Eleven in Hong Kong, Singapore, Southern China and Macau, and Starmart in Indonesia; and • Home furnishings stores – IKEA in Hong Kong and Taiwan.

The Group has a 50% interest in Maxim’s, Hong Kong’s leading restaurant chain.

Dairy Farm International Holdings Limited is incorporated in Bermuda and has a premium listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore. The Group’s businesses are managed from Hong Kong by Dairy Farm Management Services Limited through its regional offices. Dairy Farm is a member of the Group.

About Dematic Dematic is a global leader providing an impressive range of intelligent logistics and materials handling solutions. With a global knowledge network of more than 4,000 highly skilled logistics professionals, Dematic is able to provide its customers a unique perspective in world class materials handling solution design. Our commitment to product and solution R&D combined with manufacturing plants in the US, Europe, China and Australia ensures Dematic has the range and capability to provide reliable, flexible, cost effective solutions globally. Our tremendous track record of success has led to the development and implementation of more than 5,000 world class integrated systems for a customer base including some of the world’s biggest companies. Dematic generates a global business volume of around $1 billion Euros.

For more information, please visit www.dematic.asia.

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