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Island Pacific Signs Deal with Rack Room Shoes

From: ASAP

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Island Pacific (Amex: IPI) announced the signing of a license agreement with Rack Room Shoes, one of the fastest-growing shoe retailers in the nation, for Island Pacific's Peer to Peer (P2P) Point of Sale (POS) middleware. The P2P POS solution will support Rack Room Shoe's gift card authorization service.

Rack Room Shoes has been an Island Pacific customer since 1998. "We have built a very strong relationship with Island Pacific over the years," said Jim Hardister, director of information systems, Rack Room Shoes. "As our POS needs have evolved, Island Pacific has been there for us. When we said we needed to speed up our gift card authorizations, they said, 'No problem'."

"Rack Room Shoes chose IP's solution over its existing gift card authorization service because of IP's superior performance, low cost and flexibility," said Harvey Braun, chairman and chief executive officer of Island Pacific. "Our P2P POS solution is deployable in a LAN, WAN, or Internet/VPN environment. And since it is totally distributed, there is no single point of failure making it a highly reliable solution as well."

Island Pacific's POS solutions are the result of over twelve years of product development with input from some of the top retailers in the world. Deployed on Microsoft Windows XP, .NET-centric with peer to peer technology, they are provided in a thick or thin environment. POS capabilities include remote stock lookup, remote special order, gift certificate and store credit authorization, and centralized customer and associate databases for the entire chain. Additionally, the software applications are designed to be easy for the retailer to tailor to their needs.

About Rack Room Shoes

Rack Room Shoes began as a small shoe store in Salisbury, N.C. in the 1920s and has evolved into one of the fastest-growing shoe retailers in the nation. With over 300 stores located in 24 states, Rack Room Shoes remains committed to a tradition of offering quality shoes at a fair price with a local touch. Rack Room Shoes sells the top brands at a significantly reduced percentage off manufacturers' retail prices as well as its own private brands, commissioned from the best manufacturers in the business. For more information, please visit www.rackroomshoes.com.

About Island Pacific

For more than 25 years, Island Pacific has developed a reputation for delivering high-quality, high-reliability software to the retail industry. Recently, the company has transformed itself into the low-cost, high-value provider of retail enterprise solutions by developing breakthrough technologies, and by partnering with leading consulting organizations to provide next-generation services. In addition, Island Pacific leverages its years of experience with emerging and established retailers to craft creative solutions tailored for each customer's needs. As a result, Island Pacific is the definitive resource for scalable, flexible and affordable solutions for retailers around the world.

With nearly 200 customers, Island Pacific and its solutions are represented in more than 30,000 stores worldwide, and manage more than 1.5 billion transactions annually. Founded in 1978, the company is headquartered in Irvine, California, and has offices in the United States and the United Kingdom. For more information, please visit www.islandpacific.com.

Certain statements contained in this news release regarding matters that are not historical facts are forward-looking statements. These statements relate to future events or the Company's future performance. These statements are only predictions. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed in the Company's (SVI) Form 10-K for the fiscal year ended March 31, 2003 and other risk factors identified from time to time in the Company's filings with the Securities and Exchange Commission. IPI undertakes no obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events.

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