HomePoint Announces Acquisition of PROFITsystems, Inc.

Furniture World Magazine

HomePoint, a leading provider of e-business solutions to the home furnishings industry, today announced that it has acquired PROFITsystems, Inc. PROFITsystems is one of the home furnishings industry's top providers of retail management software systems, serving approximately 700 retailers with over 2000 storefronts. HomePoint and PROFITsystems plan to rapidly rollout the first fully integrated e-business solution for the home furnishings industry by integrating HomePoint's business-to-business e-commerce platform (the HomePoint Advantage Network) into PROFITsystems' software. This industry-friendly solution will enable retailers using PROFITsystems software to seamlessly communicate with manufacturers in real-time as to product availability and order status and even to place orders online. For the first time, furniture retailers will be able to truly leverage the power of the Internet in their businesses. After the initial integration, the combined companies will develop additional IT solutions and value-added services that will benefit both furniture retailers and manufacturers, and, by extension, consumers. "For the past 25 years, PROFITsystems has been a leader in designing and implemented technologies to provide home furnishings retailers with greater cost-savings and profitability," said Rick Stark, CEO of PROFITsystems. "HomePoint's experience and solid business-to-business e-commerce platform will help us take our customers to the next level, while improving communications between all home furnishings industry players. We see B2B e-commerce as a huge area of opportunity and are excited about the future of these combined companies." "PROFITsystems has a long history in this industry, from its deep roots on the retail side to its pioneering development in the 1970's of point-of-sale and other software solutions," said William Herlong, acting president and CEO of HomePoint. "PROFITsystems built its broad customer base through a strong, consistent focus on the business and technology needs of home furnishings retailers. HomePoint and PROFITsystems share this dedication to developing outstanding tools for the industry. Joining with PROFITsystems will enable us to build on our existing B2B platform and provide a more fully integrated solution that benefits retailers, manufacturers and ultimately consumers. We are looking forward to being on the same team with Rick Stark and his colleagues. They are a top-notch group. Together we will be the leading technology solutions provider to the home furnishings industry." About HomePoint: HomePoint Corporation (www.homepoint.com), a privately-held company headquartered in Greenville, SC, is the leading provider of e-business solutions to the home furnishings industry. The company's unique business-to-business strategy enhances the efficiency and productivity of the home furnishings marketplace through a sophisticated extranet platform that connects manufacturers and retailers. In January 2000, the company completed a $55 million second round of equity financing led by THLi (TH Lee.Putnam Internet Partners), Catterton Partners, GE Equity, Granite Associates, Piedmont Venture Partners and New Millennium Partners bringing the total amount raised to $72 million. About PROFITsystems, Inc.: PROFITsystems, Inc. (www.profitsystems.net), is also privately-held and grew out of a family-owned furniture business started in 1897 in Colorado by the current CEO's great-grandfather. The business automated in 1962 with an IBM 407 punch-card system. In 1975, they upgraded to an IBM System 32 and Version 1.0 of the Generation 1 of PROFITsystem, which the company wrote. In 1978, the company moved to another computer and had over forty prospective buyers for its old system and software. In 1980, the family sold the furniture operation and focused on automating furniture dealers and helping them increase their profits with its unique software package. Today, more furniture companies in North America run their businesses on PROFITsystems software than on any other furniture software. The company expects to release Version 9.0 of Profit Windows in the third Quarter. It will be the industry's first fully-functioning Windows-based retail management system. Contact: melissa.introne@homepoint.com