On October 1, 2008, Oracle announced that it has entered into an agreement to acquire Advanced Visual Technology Ltd. (AVT), a leading provider of 3D visual macro space planning software. The transaction is subject to customary closing conditions and is expected to close in the second half of 2008. Until the deal closes, each company will continue to operate independently.

As retail companies try to accommodate in-store services and localizations to provide a differentiated shopping experience, the optimization of retail floor space has become a top priority. AVT enables retailers to collaborate with their stores and supplier partners to design and plan retail floor space in real time with a current photo-realistic view of each store. AVT products help retailers improve store performance and compliance by aligning corporate goals with planning and execution across the chain, cluster, and store.

Oracle Retail combined with AVT will provide a comprehensive space planning and optimization solution that is expected to maximize profitability of one of the retail industry's most valuable assets—their retail store space. AVT complements Oracle Retail Space Optimization which provides optimal space, fixture, and item on-shelf allocation recommendations based on business rules, forecasted demand, and profit potential. In addition, AVT with Oracle Retail's Business Intelligence and Oracle Retail Workspace is expected to enable retailers to link the performance of their business plans to the visual depiction of the actual merchandising within their stores. Overall, the combined solution is expected to provide the best allocation of space across categories, aisles, departments, and the entire store to reduce stock out rates and excess inventory costs.

After the close of the transaction, Oracle partners are expected to benefit from working with a single vendor to address customer needs for space planning and optimization and from the opportunity to broaden their offerings and provide world-class solutions to retail customers. System Integrators are expected to benefit from new opportunities to provide customers with implementation and other services. Partners can take advantage of Oracle's worldwide resources and enablement through the Oracle PartnerNetwork program.

We look forward to providing our customers a comprehensive retail space planning, execution, and optimization solution for their businesses. To learn more about the proposed combination of Oracle and AVT, please visit oracle.com/avt.

We appreciate your continued support.

Sincerely,
 
Judson Althoff
 
Group Vice President, Oracle Worldwide Alliances and Channels

The above is for informational purposes only and may not be incorporated into a contract.