i2 Forges Strategic Relationship to Transform Kmart's Supply Chain Infrastructure

i2 Technologies, Inc. (NASDAQ: ITWO), the leading provider of marketplace solutions, today announced that Kmart Corporation (NYSE: KM) has licensed i2's intelligent e-business solutions to dramatically transform its supply chain execution, improve consumer satisfaction and enhance sales and marketing. The two companies also have formed a strategic relationship to focus on a next-generation retail solution that will span functions throughout the value chain.

Kmart turned to i2 to support the company's "Play to Win!" information technology initiative to transform the retail company's operational infrastructure. i2 is providing an end-to-end value chain solution that is designed to optimize Kmart's operations and helps Kmart make the transition to the new economy of e-business. With i2's help, Kmart will be able to improve its strategic, financial, demand and merchandise planning, design functions, sourcing, logistics, transportation, and reporting functions. The integrated i2 solutions will increase electronic collaboration within Kmart and between Kmart and its business partners.

"We have seen i2 help many of our suppliers become more competitive, so we were confident that i2 is the right technology partner to help us achieve our goals," said Randy Allen, Kmart executive vice president and Chief Information Officer. "Together with i2, we can provide more value to our customers while leading the way to create the next generation of retailing infrastructure."

As a result of this relationship with i2, Kmart plans to automate store processes so store personnel have more time to interact with and help customers. It also will improve Kmart's planning processes to make sure that the right merchandise is in the right stores and shoppers can find what they need. The implementation will link Kmart to the WorldWide Retail Exchange for more efficient procurement.

"Kmart is exhibiting tremendous vision in setting out on this aggressive initiative," said Terry Turner, i2 senior vice president, Consumer Goods and Retail. "In order to remain competitive, retailers must move into the new economy where e-business transforms and optimizes all processes. Kmart is leading the revolution."

In working with Kmart on this project, i2 is creating a retail template for its i2 TradeMatrix™ set of solutions, platform and content. It is intended to be a best-in-class solution with the comprehensive e-business strengths of i2 TradeMatrix customized to suit the workflow of retailers.

Implementation of the project is scheduled to begin in early 2001, with a series of 12 business releases rolled out over the next two years. The plan is designed for the long term, but will begin providing value quickly. Team members from both Kmart and i2 are working together on-site at Kmart's headquarters in Troy, Mich., to pilot the applications, implement them and train personnel on using the applications.

About Kmart

Kmart Corporation serves America with 2,164 Kmart, Big Kmart and Super Kmart retail outlets. In addition to serving all 50 states, Kmart operations extend to Puerto Rico, Guam and the U.S. Virgin Islands. More information about Kmart is available on the World Wide Web at http://www.bluelight.com/ in the "About Kmart" section.

About i2

i2 is creating real value for its global e-business customers through its TradeMatrix™ solutions, content and marketplace platform. TradeMatrix allows businesses to create both private and public marketplaces, while improving the efficiencies of all participants. i2 provides a wide variety of collaborative e-business services for both the early stages and the next generation of e-business adoption, with each service supported by decision optimization, transaction management and content management solutions. Founded in 1988, i2's mission is to deliver $50 billion in value to its customers by 2005. i2 is headquartered in Dallas, has more than 5,000 employees and maintains offices worldwide. Visit i2 at http://www.i2.com/ .

i2 and the i2 logo design are registered trademarks of i2 Technologies, Inc. TradeMatrix is a trademark of i2 Technologies, Inc.

i2 Cautionary Language

This press release may contain forward-looking statements that involve risks and uncertainties, including the customer's ability to implement i2 solutions successfully or to achieve benefits attributable to i2 products. For a discussion of factors which could impact i2's financial results and cause actual results to differ materially from those in forward-looking statements, please refer to i2's recent filings with the SEC, particularly the Form 10-K filed March 22, 2000 and form 10-Q filed May 15, 2000.

SOURCE: i2 Technologies, Inc.

Contact: Susan Dennis of Kmart Corporation, 248-463-1021,
sdennis1@Kmart.com; Beth Elkin of i2 Technologies, Inc., 469-357-4225,
beth_elkin@i2.com; or Tracee Larson of Edelman Public Relations, 214-443-7579,
tracee_larson@edelman.com, for i2 Technologies, Inc.

Website: http://www.bluelight.com/

Website: http://www.i2.com/