Park City Group Initiates Supply Chain Profit Link Opportunity Evaluation with Prominent Northeast Supermarket Retailer

SCPL Category Management Toolset Evaluation Commenced in

200+ Store Supermarket in Four Product Categories Involving 15 Suppliers

PARK CITY, Utah – June 12, 2008Park City Group, Inc. (OTCBB: PCYG), developer and marketer of patented computer software and consulting services designed to enable its retail customers to increase sales while reducing inventory and labor costs, announced that a 200+ store supermarket retailer recently began an opportunity evaluation of Supply Chain Profit Link (SCPL) in four product categories.  The average supermarket has approximately 180 categories, 50-100 of which are excellent candidates to benefit from the SCPL platform. Park City Group is gathering inventory and sales data provided by the prominent northeast supermarket retailer and will perform deep level analysis to demonstrate, via detailed analytics and item-level visibility, the proper action steps necessary to enable the chain to capture millions of dollars of increased sales and profits.

Park City Group’s SCPL category management tool for perishable and non-perishable products delivers collaborative resources and data-sharing capabilities previously unavailable to retailers and suppliers.  SCPL allows retailers and suppliers to view corporate, division, region, store, department, category and item-level product movement down to hourly increments allowing for unprecedented tracking and correction of store- and shelf-level issues.

The four product categories included in the evaluation are commercial bakery, produce, ice cream and ground meat.  Park City Group and the retailer jointly determined the category objectives and process for implementing SCPL during the 60-day no charge opportunity evaluation period.  Historically, Park City Group has successfully identified millions of dollars in lost opportunity sales through shrink (or waste) analysis, out-of-stock identification, promotion analysis, and shelf space optimization.

Based upon data observations, Park City Group’s Business Analytics Group will conduct bi-weekly collaborative category reviews and create category-specific presentations for the supermarket’s Category Managers, Merchants, Operators and Suppliers which include performance and trends analytics to provide solutions to the problems surfaced in the data.

Not only is the SCPL platform a powerful tool to convert retailers’ data into effective operational actions, it also facilitates and solidifies supplier relationships by providing unparalleled third-party visibility for product movement.  SCPL provides a unique value proposition for the supermarket and its vendor. Armed with previously unavailable data, suppliers often provide funding for the program in order to share in the valuable data analysis.  The retailer benefits by increased sales and reduced inventory and labor costs.  The suppliers’ benefits can include increased sales as well as promotional effectiveness.

Randall K. Fields, Chairman and CEO, said that, “Our success rate in converting SCPL opportunity evaluations into paid engagements is outstanding.  We are highly confident that by the conclusion of the evaluation we will once again successfully demonstrate important and dramatic financial benefits for this supermarket chain to utilize SCPL.  We can then look forward to their paid subscription for the SCPL category management toolset and the opportunity to build upon the solid analytic foundation made possible by SCPL.  We would also look to expand the utilization of SCPL and identify how our other solutions and products can benefit this chain.”

Last year, Park City Group began to focus its business model on sales of subscription-based products in order to minimize ‘lumpy’ licensed-based sales.  The benefits of subscription-based products to Park City Group include (1) a shorter, less resource intensive sales cycle, (2) a steady and recurring revenue stream, and (3) allows retailers the ability to share costs with the supplier.

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