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Sheila Dahlgren
SVP Marketing & Corporate Communication
Scene7, Inc.
Office: 415-506-6002
Cell: 415-948-5207
sheila@scene7.com


September 28, 2004

Scene7’s eCatalog Solution Increases Conversions up to 2X for Major Retailers While Offering the Industry’s Lowest Cost Options

Restoration Hardware, Inc., Coldwater Creek, and Rhodes, Inc. driving Multi-channel revenues by using Scene7 full-service and “do-it-yourself” eCatalog options


Novato, CA — September 28, 2004 — Scene7®, provider of the leading rich media platform to grow revenues and enhance visual communications – while automating media production and delivery, today announced that its one-of-a-kind eCatalog Solution is providing significant business benefits for leading retailers such as Restoration Hardware, Inc., Coldwater Creek, and Rhodes, Inc.

Scene7's eCatalog Solution enables companies to easily and cost-effectively put their existing printed catalogs, circulars, ads and other marketing materials online to create an engaging, interactive, web shopping experience that extends cross-channel reach and gives customers more ways to buy.

Scene7 is the only provider to offer a range of deployment options including full-service and self-service hosted ASP and in-house license options. Depending on a company’s business needs, Scene7’s flexible deployment options offer the lowest cost of ownership in the industry.

Full-service. A 100% out-sourced service option, Scene7 will create, publish and host a company’s online catalog. Ideal for companies with limited internal resources and staff, Scene7's full-service option is a turnkey, hosted alternative.

Self-service. A self-service option where companies control the production and publishing of their online catalogs and all versions to Scene7’s hosted ASP Infinite Imaging Network. This unique do-it-yourself option has “productized” the online catalog publishing--allowing companies the flexibility to operate on their own without requiring internal IT capital or support. Companies upload, automatically sequence, and publish all of their printed materials and versions based on their schedules.

License Scene7 software. A license to Scene7’s eCatalog Solution allows companies to control the production, publishing and hosting of their own online catalogs in-house.

Restoration Hardware, Inc.: eCatalogs driving 2X conversion rates
Selecting Scene7’s fully hosted eCatalog service solution, Restoration Hardware outsourced the entire print catalog web publishing and hosting to Scene7’s Client Services division. Restoration Hardware simply delivers its printed catalog pages in PDF format to Scene7. Scene7 does the rest of the work. Typically, in less than a week’s time, Scene7 can publish Restoration Hardware’s entire printed catalog online and make it available to view at Restoration Hardware’s website.

“Scene7’s one-of-kind visualization capabilities and customer service have exceeded our expectations. Using Scene7’s eCatalog full-service offering has offloaded a tremendous amount of internal work – freeing up the web team to work on other initiatives. More importantly, Scene7’s dynamic imaging capabilities have contributed to our recent growth in conversion rates. We are eager to implement more of Scene7’s rich merchandising tools,” said Stephanie Garcia, VP of e-commerce, Restoration Hardware, Inc.

Coldwater Creek: Do-it-yourself eCatalogs
After evaluating other full-service eCatalog offerings, Coldwater Creek originally selected Scene7’s full service eCatalog solution for the creation, publishing and hosting of eCatalogs. The eCatalog solution has given its customers an additional channel to purchase Coldwater Creek products in a familiar, easy-to-use format. Recently, Coldwater Creek increased the number of eCatalogs they planned to publish and switched to Scene7’s self-service option to bring eCatalog publishing capabilities in-house. This has enabled Coldwater Creek full control of production, reducing overall time-to-market and ultimately lowering the total cost of ownership with no infrastructure investment.

Rhodes, Inc.: Zip-code based eCirculars
Rhodes, Inc., one of the largest multi-channel furniture retailers in the US, is utilizing Scene7’s eCatalog full service hosted solution to deliver regionally-based ads and online circulars to drive traffic to its retail stores – increasing multi-channel revenues and conversion rates. The addition of Scene7’s eCatalog solution has resulted in a 20% increase of online sales in the first month, exceeding Rhodes’ expectations far exceeding its prior results using another eCatalog service offering. Results have shown that Rhodes’ Online Circulars have been a top performer in driving multi-channel sales, and the conversion rates from these Online Circulars have so far doubled that of its direct email campaigns. Rhodes is also realizing cost reduction benefits by re-purposing existing print materials and extending the reach of its regional advertising and store promotions.

“We’re very pleased to be providing eCatalog solutions to these world class companies,” said Doug Mack, CEO of Scene7. “Our clients are industry-leaders who demand superior technology and services that will deliver multi-channel revenues and a rapid, positive return on investment. By offering our customers multiple eCatalog deployment options, we can meet their requirements both today and in the future.”

About Restoration Hardware, Inc.
Restoration Hardware, Inc. is a specialty retailer of home furnishings, functional and decorative hardware and related merchandise that reflects the Company's classic and authentic American point of view. Restoration Hardware, Inc. sells its merchandise offering through its retail stores, catalog (800-762-1005) and on-line at www.restorationhardware.com.

About Coldwater Creek
Coldwater Creek is a specialty retailer of women's apparel, accessories and gift items through a growing number of full-line retail stores located in major metropolitan areas, an e-commerce web site at www.coldwatercreek.com and direct-mail catalogs.

About Rhodes, Inc.
With 90 stores located throughout 13 states across America, the Rhodes family of stores is one of the largest furniture retailers in the country. By providing customers with the best selection, price, value and service, Rhodes has earned an outstanding reputation in the industry. For more information visit Rhodes on the Web at www.rhodesfurniture.com.

About Scene7
Scene7 provides the leading rich media platform to grow revenues and enhance visual communications via the web, email, displays and print, while automating media production and delivery. Scene7's integrated platform for production, management and delivery of rich media enables five key business solutions: Dynamic Imaging (dynamic zoom, sizing, art, color swatching, spin, templates), eCatalogs, Dynamic Customization, eVideos and Dynamic Asset Management. More than 225 leading companies, in industries ranging from retail to hi-tech, have selected Scene7 products, including Macy's, Scripps Networks, Home and Garden Television, Microsoft, Office Depot, Levi Strauss & Co., Kinko's, La-Z-Boy and QVC. Scene7 has been selected as a partner of key technology leaders including IBM, Microsoft, Coremetrics and Akamai. Scene7, a holding of QVC/Liberty Media, Moore Capital and Rhodes Partners, is based in Novato, California. For more information visit http://www.scene7.com.

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