Columbia, Maryland (September 10, 2002) — Implementation of a new radio frequency network by PEAK Technologies, Columbia, Maryland, has helped Hollister Incorporated, a major medical products manufacturer located in Libertyville, Illinois, cut total distribution costs by 6% and labor costs by 9% at a new distribution facility in Nashville, Tennessee. "The RF system has increased the efficiency of every aspect of the material handling process, by virtually eliminating manual data entry, time spent looking for product, improving replenishment productivity, etc.," said Craig Hourigan, Manager of Supply Chain Logistics for Hollister. "After only a few months of operation, we have seen a 40% reduction in shippable backlog due to the improved speed at which receiving, putaway and replenishment have been accomplished."

Hollister Incorporated is an independent, employee-owned company that develops, manufacturers, and markets healthcare products, primarily in ostomy care, continence care, breastfeeding, wound care, and hospital risk management. When Hollister originally migrated from plant-based distribution to a central distribution center, management wasn't happy with the level of productivity and also felt that improvements could be made in inventory and order fulfillment accuracy. "The biggest problem was the manual nature of the transactions," Hourigan said. "The entire system ran on paper which meant that a high proportion of our staff was dedicated to data entry."

"We decided to invest in an RF system to automate data collection and labor management," Hourigan continued. "We talked to several integrators but selected PEAK Technologies primarily because of their unique process. This process encompassed the development of a full systems requirements definition, mutual agreement on project goals and the development of an integrated solution designed to meet those goals with the least amount of risk. PEAK has a wide range of experience in implementing RF systems in all sizes of distribution centers and manufacturing plants, expertise in interfacing with SAP, and a strong European presence that we felt would be useful when we expand our implementation worldwide."

The process defined jointly by Hollister and PEAK begins when the shipping crew in the manufacturing department scans goods with a handheld terminal as they place them on a pallet and attach a bar-coded license plate. Pallets are loaded into a truck and a door-close transaction on the RF handheld is performed. At the distribution center, license plates are scanned and, when the pallets are put away, the location is also scanned to enter them as immediately available for sale. At intervals, the ERP system compares the inventory in pick faces located near the shipping dock to predetermined minimum and maximum levels. Replenishment orders are automatically created and sorted into an efficient pick path. When the driver picks up an item, they scan the license plate and the location, which updates inventory. The operator scans the product and pick face as the item is put away. Packers scan the product again as they load it into cartons for shipment.

"The success of this project can largely be attributed to the project management structure that Hollister and PEAK jointly put into place at the beginning of the project," Hourigan said. "Working closely together, we delivered the project on time and on budget and in our first two months of operation have already achieved our targeted cost savings. For example, we have eliminated two full time positions that were required in the past to manually enter incoming shipments and replenishment orders. The near elimination of errors and the fact that product now appears in inventory as soon as it goes on the shelf has helped to improve our fill rate to 97.8%, improved customer service and eliminated the need for double-handling."

About PEAK
PEAK Technologies, a Moore company (TSE, NYSE: MCL), is an international systems integrator of automatic identification and data collection (AIDC) equipment and systems. Our systems integration specialists and factory-trained service technicians are experts in wireless radio frequency network and ERP integration solutions, enterprise printing, bar code scanning, mobile computing, terminal and software technologies. PEAK's primary applications include solutions for warehousing, manufacturing, distribution and field-based operations. PEAK's market leadership and strong financial management provide you with stability and assurance that your solutions are delivered with long-term support. Headquartered in Columbia, Maryland (USA), PEAK Technologies has more than 850 employees with locations throughout the United States, Canada, Mexico and Europe. For more information, visit www.peaktech.com, email info@peaktech.com, or call PEAK at (888) 275-7325. Moore Corporation Limited is an international leader in the management and distribution of print and digital information. The Moore Internet address is www.moorewallace.com.

About Hollister
Hollister Incorporated is an independent, employee-owned company that develops, manufacturers, and markets healthcare products, primarily in ostomy care, continence care, breastfeeding, wound care, and hospital risk management. Hollister provides both one-piece and two-piece ostomy products, as well as a specialized system of pediatric products and a comprehensive range of accessories. The company offers a comprehensive system of products for both management and treatment of incontinence, including advanced intermittent catheters, male external catheters, leg bags, and accessories for both males and females. Hollister also distributes a highly acclaimed line of Ameda breast pumps and accessories providing nursing mothers with the most natural, effective, and comfortable breastfeeding products available. Hollister has developed an extensive range of dressings that promote moist wound healing. The company's patient identification systems, such as mother/father/baby bracelets, bands for long-term and short-term care and specialty bands provide clear, easy to understand information for improved patient care. For more information, visit www.hollister.com, or call 800-323-4060.

All products or company names listed are Registered Trademarks and Trademarks of their respective holders.

For more information, contact a Corporate Communications Specialist at 410.312.6046 or pr@PEAKtech.com. PEAK's corporate headquarters address is: 9200 Berger Road, Columbia, MD 21046.