Press Release

Zappos.com Implements Kiva Mobile Fulfillment System in Four Months

Rapid deployment shatters time-to-value benchmarks for automated distribution center
systems installation

Woburn, MA - June 24, 2008 -Kiva Systems, a developer of breakthrough picking, sortation and shipping systems for distribution center automation, today announced that leading online retailer Zappos.com has implemented the Kiva Mobile Fulfillment System (KMFS) in just four months. Zappos has deployed a fleet of Kiva’s mobile robotic drive units and inventory storage pods at its Shepherdsville, Ky. facility to support their rapid order growth and expansion into new categories such as apparel, sportswear and accessories.

“Virtually all the previous automation system deployments I’ve overseen took a year or more to design, build and test,” said Craig Adkins, VP of fulfillment operations, Zappos.com. “We were amazed that Kiva transformed our new warehouse from bare concrete to fully operational readiness—with trained supervisors and associates—just four months after we signed the purchase order. We’re already working on designs to cube out the building with Kiva’s MFS on multi-level mezzanines.”

With an emphasis on e-commerce orders requiring split-case picking, the Zappos.com distribution center needs to manage a huge range of unique products, while shipping orders as quickly as possible. The Kiva MFS effectively empowers inventory to manage itself, and transforms the DC from a serial-process operation to a massively parallel processing order fulfillment engine. As a result, the Kiva MFS enables breakthrough improvements over generally accepted material handling benchmarks, including order picking speed, order accuracy, volume scalability and flexibility in reconfiguring operations or responding to market changes.

“Zappos understands that, in e-commerce, the distribution center is the store, and the order fulfillment operation needs to deliver nearly instant gratification to consumers,” said Mick Mountz, founder and CEO of Kiva Systems. “As a rapidly growing e-commerce pioneer focused on delivering ‘wow!’ customer experiences, Zappos appreciates the wider strategic impact of a flexible, scalable fulfillment operation. The Kiva Mobile Fulfillment System will go a long way toward helping Zappos.com maintain their high standards for customer service while continuing to grow order volume and product selection.”

About Kiva Systems

Kiva Systems, Inc. offers game-changing automation technology for distribution centers that helps companies simplify operations and reduce costs, while increasing strategic flexibility. Using hundreds of autonomous mobile robots and sophisticated control software, the Kiva Mobile Fulfillment System enables extremely fast cycle times with reduced labor requirements, from receiving to picking to shipping—all without conveyor. The result is a building that is quick and low-cost to set up, inexpensive to operate and easy to change. For more information on Kiva Systems and its solutions, please visit www.kivasystems.com.

About Zappos.com

Established in 1999, Zappos.com has quickly become one of the leaders in online shoe and handbag sales by striving to provide shoppers with the best possible service and selection. Zappos.com currently stocks more than 3 million shoes, handbags, clothing items and accessories from over 1,000 brands. Zappos.com has appeared in Inc. Magazine’s annual list of the 500 fastest-growing private companies in the U.S. for four years in a row (2004, 2005, 2006, 2007), with gross merchandise sales of over $800 million in 2007. Zappos.com was also included in Time Magazine’s “25 Sites You Can’t Live Without.” Zappos.com’s Customer Loyalty Team is available 24/7, 365 days a year. For more information about Zappos.com, please visit www.zappos.com

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