SAN FRANCISCO – Sept. 1, 2005 – ZoomSystems announced today it is accelerating deployment of the company's new automated retail stores in airports, hotels, malls and even grocery stores in a move that will revolutionize traditional vending. Zoom is ushering in a new era of automated retailing by implementing networks of 40 square foot robotic stores that are placed in heavily trafficked locations and are open 24 hours a day. For the first time ever leading brands can place products like digital music players, headphones, computer accessories and even cosmetics directly in the path of consumers, creating a new experience and generating revenue opportunities where none existed before.

"Zoom Shops are not your parents' vending machine" said Gower Smith, CEO and co-founder of ZoomSystems. "Unlike vending, we have developed the technology and intelligence to offer consumer's the hottest products from $10 to $200 from the best brands. It's like shopping online, but consumers have the instant gratification of getting their product immediately."

Zoom plans to build a network of 3,000 robotic stores at high traffic locations over the next 24 months and expects its network to grow to 10,000 stores in the next five years. Zoom Shops are centrally networked, have a touch screen consumer interface and deliver product via a robotic arm.

Revolutionizing Vending, Changing Retail Forever
Zoom Shops will offer the same direct access to consumers that inspired vending, but do so with "state of the art" robotic stores Zoom Shops feature a touch screen that delivers an experience similar to online shopping. Customers can view product information before they purchase. Rather than having your product dropped into a bin, Zoom Shops retrieve product via a robotic arm and carefully delivers it directly to the consumer. Patented optical technology ensures the product has been delivered before the customer's credit or debit card is charged for the purchase.

Zoom Shop product assortments are customized to each channel and offer up to 120 items in a secure, well lit environment. Zoom Shops in airports offer digital music players, headphones, pre-paid mobile phones, digital cameras and computer accessories. Zoom Shops in hotels offer personal electronics and computer accessories as well as the same merchandise you would expect to find in a traditional hotel store such as medicines and personal care products.

Additionally, Zoom creates customized concepts for location partners. For example, Zoom Shops in grocery stores, offer home office products such as ink cartridges and computer accessories.

"Just as ATM's extended banking services to locations far beyond the teller window, Zoom is extending the retail experience to thousands of locations where transactions weren't possible before. The possibilities for brand and location partners are limitless," Smith said.

Zoom Flies into Airport Expansion
Based on its initial success at San Francisco and Atlanta airports, two of the world's largest international airports, ZoomSystems recently signed new long-term agreements that will greatly expand the presence of its robotic stores in both.

"We're very pleased to be among the first locations in the world to offer Zoom Shops to busy travelers in our new International Terminal," said John L. Martin, Airport Director at San Francisco International Airport.

Zoom is in discussions with other major airports around the country and expects to be in other metropolitan markets before the end of the year.

Zoom Shops Offer Hotel Guests 24x7 Experience
Zoom has also deployed Zoom Shops in many leading hotels. The four diamond, 667 room Argent Hotel in San Francisco installed its first Zoom Shop after closing an unprofitable gift shop. Data from the Argent Zoom Shop shows almost half of sales occur during hours when the previous gift shop would have been closed, generating new revenue for the hotel and providing better service for its guests. Zoom Shops in hotels also offer most of the same personal care, medicine, travel, electronics and other goods that were previously sold in the gift shop.

"The Zoom Shop allows us to offer the best products at any time that our guests need them," said Brian Hughes, General Manager of the Argent. "As hotel gift shops become less and less viable in today's high labor cost environment, the opportunity presented with the Zoom Shop was quite simply an opportunity to not say "no" to our guests when asked if we have a venue to purchase essential and convenience based products. The Zoom Shop was the logical replacement for a store that wasn't delivering revenue for the hotel."

Branded Zoom Shops Offer New Marketing, Retail Channel
Just as Zoom Shops can be customized to locations, they can also be customized to brands. For example a cosmetics company could customize a Zoom Shop so that it carried the look and feel of the brand and offers the best of its product line. Because the stores are located in high traffic consumer areas, these customized stores serve as impactful advertising and marketing opportunities as well.

"These customized Zoom Shops offer leading brands tremendous new opportunities to showcase their best products as well as new opportunities to sell these products at retail, while carrying their brand message to consumers in locations they would otherwise find difficult to access" said Rick Cusick, former merchandising executive at LVMH Moet Hennessey Louis Vuitton, who recently joined Zoom as EVP of Merchandising.

Deep Retail Experience on Zoom Exec Team
Zoom executive management team, board of directors and advisors all have extensive retail backgrounds at leading brands that include Target, LVMH Moet Hennessey Louis Vuitton, Bank of America, Mattel and Compaq. Zoom executives and founders now own 40 percent of equity in Zoom after participating in a $12 million Series B financing, which closed in June 2005.

Other Zoom directors and advisors also participated in the Series B financing including U.S. Venture Partners' Phil Schlein, the former CEO of Macy's California and former board member at Apple Computer for eight years and Bruce Quinnell, ZoomSystems Chairman of the Board. Quinnell is former Vice Chairman, President and COO of leading retailer Borders Group and currently is also chairman of Hot Topic, one of the nation's most successful mall retailers.

About ZoomSystems
ZoomSystems is pioneering a new retail channel; automated retail that places popular brands and high demand products directly in the path of consumers. These "state-of-the-art" robotic stores utilize 40 square feet carry only the world's most popular products and are located in high consumer traffic areas, a retailing strategy that stands in a clear contrast to confusing, crowded and cluttered mega-stores. Zoom's robotic stores use technology to provide consumers simplicity, speed and easy access to products from high profile brands offering consumers a revolutionary new retail experience. Led by a dynamic team of experienced retail executives, Zoom plans over the next two years to implement thousands of these robotic stores in high traffic locations such as airports, hotels, malls and grocery stores. http://www.zoomsystems.com

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