Headwater Technology Solutions Inc. Upgrades 3PL Warehouse Solution

Incorporates new foundation layer that uses multiple forms of radio frequency for productivity gains

Markham, Ontario — January 30, 2006 — Supply chain execution firm Headwater Technology Solutions Inc. announced today that Version 2.6 of its WarehouseLogic warehouse management system incorporates several new features to provide greater control, expedited operations and more efficient warehouse management, along with enhancements to existing features.

WarehouseLogic is the central element of Headwater's SmartEnterprise third-party logistics (3PL) management suite, which was launched in Spring 2003. The software added a graphical user interface control and an expanded suite of management capabilities to the previous WarehouseLogic 3PL solution.

Headwater said its WarehouseLogic product suite enables 3PL clients to have work flow processes by shipper and customer within each client profile. Release 2.6 incorporates a new foundation layer that leverages multiple forms of radio frequency, supporting not only conventional radio frequency terminal and barcode technology but also radio frequency identification (RFID) and voice. The new framework is based on the service-oriented architecture.

The new release also puts in place a new approach for deploying concurrent RF technology within a single facility. RF, RFID and voice can be applied where it is best suited to meet specific client needs or to achieve the best productivity gains.

WarehouseLogic is the core of the SmartEnterprise 3PL solution, and Headwater strives constantly to maintain it as the state-of-the-art public warehouse system, said Joe E. Couto, Headwater's senior vice president. Headwater's ongoing development program is structured on four pillars of support for our customers: improved sales and revenue, cost reduction, improved customer service and increased productivity. Each of these enhanced features represents yet another tool that 3PL providers can use deliver higher quality service, maximize the return on their physical and labor resources, and ultimately, achieve a more effective and more profitable enterprise.

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