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 Press ReleaseZappos.com Selects Kiva Mobile Fulfillment System to Ramp Order Volume and Introduce New Product CategoriesLeading Internet retailer cites flexibility and performance as keys to decision Woburn, MA - February 25, 2008 – Kiva Systems (www.kivasystems.com), a developer of breakthrough mobile solutions for the distribution and order fulfillment industry, today announced that leading online retailer Zappos.com intends to install a Kiva Mobile Fulfillment System at one of the company’s distribution centers. Zappos plans to use Kiva’s ItemFetch split-case picking system and OrderFetch shipping sorter at its Shepherdsville, Ky. facility to store, move and sort a variety of products, including shoes, apparel and accessories. “Zappos needed a material handling solution that was incrementally scalable so it could grow smoothly as our sales do, rather than a traditional system that can only grow in large, expensive jumps,” said Craig Adkins, VP of fulfillment operations. “Conventional equipment is also very difficult to move if you need to alter the footprint or change facilities, and this can be extremely frustrating. Kiva solves several problems simultaneously with portable equipment that not only scales up and down on a dime, but is also flexible enough to easily accommodate new product characteristics.” Kiva’s innovative approach to order fulfillment utilizes a fleet of mobile robotic drive units that bring inventory directly to workers, allowing easy and efficient access to all inventory items at all times. For eCommerce fulfillment, which demands single-order accuracy and speed, Kiva boosts order productivity and maintains high picking standards. This approach is also applied to completed orders, ensuring that the right order is delivered to the right dock door at the right time. Elimination of operator walking and waiting time enables worker productivity that is two to three times higher than with other automated systems. Kiva believes that for Internet retailers, the distribution center is the store, and the Kiva Mobile Fulfillment System is a strategic advantage that transforms the distribution center into a truly optimized, competitive asset. The Kiva approach is ideal for eCommerce fulfillment, allowing orders to flow directly from the Internet to the factory floor. Since Kiva’s workflow eliminates the need for batch or wave processes, the faster order cycle time enables customers to place orders late at night and receive their merchandise the next morning. What’s more, because all the system components are mobile and modular, a Kiva-equipped distribution center has unprecedented flexibility when adding new products or expanding throughput—without disrupting ongoing operations. “Zappos has become so successful by making it easy for customers to find and purchase great products,” said Mick Mountz, founder and CEO of Kiva Systems. “Kiva has taken the same approach to material handling and designed a system that is easy to set up, easy to use and easy to grow. Kiva makes it possible for Zappos to scale up quickly while preserving its legendary customer service model.” About Kiva SystemsKiva Systems, Inc. uses game-changing automation technology for distribution centers that helps companies simplify operations and reduce costs, while increasing strategic flexibility. Using 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.comEstablished 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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