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Technology Stocks : Peapod (PPOD) -- Ignore unavailable to you. Want to Upgrade?

To: R. Bond who wrote (654)	1/25/1999 11:45:00 AM
From: Regis McConnell	Read Replies (1) \| Respond to of 1170

Our new Chicago warehouse is now open for biz, things look to be progressing rapidly... The 'CDC' model will be able to deliver many goods/products as it proves itself to be efficient & cost effective for local deliveries. Monday, January 25, 1999 8:27AM SKOKIE, Ill., Jan. 25 /PRNewswire/ via NewsEdge Corporation - Peapod, Inc. (Nasdaq: PPOD), the nation's leading Internet grocer, today announced that it has opened and initiated service from its dedicated consumer direct center ("CDC") in suburban Chicago. Peapod is consolidating fulfillment operations from twelve separate locations throughout the metropolitan area into the single 70,000 square foot CDC. Upon completion of the consolidation, the CDC will service approximately $30 million in current annual Internet grocery volume, more Internet grocery orders than any facility in the world, and be capable of substantially greater volume to accommodate Peapod's anticipated growth. The Chicago CDC is the first large-scale implementation of Peapod's new centralized operating model. The new model was designed to enhance the Company's control over service quality and remove costs from the order fulfillment process, thereby enabling it to reduce consumer fees and consequently grow consumer demand. The Chicago CDC will house an "efficient assortment" of over 12,000 dry grocery, frozen and dairy products, along with perishable products including produce, meat and prepared foods. Products will be replenished on a just-in-time basis to optimize space utilization, minimize stock-outs and ensure freshness. Jewel/Osco will provide product and replenishment services in the CDC in substantially the same fashion as done with its traditional retail locations, although more customized to meet the product assortment, frequency and volume demands of the CDC. The CDC incorporates leading edge technology including the Company's hand-held scanning device which automates several key processes, and a new transportation routing system which ensures efficient use of truck capacity and delivery personnel. Peapod customers shop on Peapod.com, the Company's highly functional Internet website. The website is broadly accessible, simplifies the shopping process, and offers consumers a choice among three service fee plans starting as low as $5 per order. This reduced fee is approximately half of what Peapod has historically charged for its service, and reflects the increased efficiencies and enhanced product margins which the centralized distribution model will allow Peapod to realize. Consumers will pay competitive retail prices for products. Andrew B. Parkinson, Chairman, President and Chief Executive Officer, commented, "We are excited to open the Chicago CDC, which offers substantial improvement in service quality and cost efficiency. This milestone represents the most significant accomplishment to date in the execution of Peapod's new fulfillment model -- the completion of the model's evolution from concept into an operating reality. We intend to demonstrate the economic success of this business in 1999, and subsequently to launch an aggressive campaign to replicate our business model nationwide." Peapod, Inc. (www.peapod.com) is the leading Internet supermarket, providing consumers with broad product choices and local delivery services. The Company currently provides such services in eight metropolitan markets in the United States and serves over 98,000 members. Peapod is also a leading provider of targeted media and research services to consumer goods companies, offering its unique medium for targeting promotions and advertising at the point of purchase and conducting cost-effective research. SOURCE Peapod, Inc. CONTACT: John C. Walden, Chief Operating Officer of Peapod, Inc., 847-583-9400; Andrea Kaimowitz, Cheryl Olson, Press - Lee Foley or Evan Goetz of Morgen-Walke Associates, 212-850-5600, for Peapod, Inc. Web site: peapod.com (PPOD)