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Nordstrom To Implement ProfitLogic's Markdown Optimization Solution

Boston, Mass. – January 31, 2005

ProfitLogic, the industry-leading provider of Retail Profit Optimization solutions that deliver the highest return on retailers’ inventory investments, today announced that Nordstrom (Nasdaq: JWN), a leading fashion specialty retailer, has selected ProfitLogic’s Markdown Optimization solution to use across the company’s 94 U.S.-based full-line stores. The sophisticated customer demand analytics of ProfitLogic’s solution will provide increased visibility storewide and will help Nordstrom be more responsive to customer needs by offering fresher merchandise in season.

“ProfitLogic’s Markdown Optimization solution will give us the opportunity to enhance our merchandising processes by providing our merchants with better reporting and better visibility across all stores,” said Jan Walsh, Vice President and Business Information Officer of Nordstrom.

“Nordstrom’s outstanding performance stems from focusing on continuous improvement and innovation in overall operating efficiency — including merchandising processes — while continuing to deliver a unique shopping experience to customers through their people and product,” said Tom Ebling, Chairman and CEO of ProfitLogic. “We are pleased that the Nordstrom team chose ProfitLogic as one ingredient in their search for innovative technology solutions.”

ProfitLogic provides industry-leading Retail Profit Optimization solutions designed for retailers whose top priority is getting the highest return on inventory investments. ProfitLogic’s customers have found that using insight into future customer demand results in more profitable merchandising decisions and more time to focus on what matters most: the customers and the merchandise.

About Nordstrom, Inc.Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 150 US stores located in 27 states. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 94 full-line stores, 49 Nordstrom Racks, five Faconnable boutiques, one free-standing shoe store, and one clearance store. Nordstrom also operates 31 international Faconnable boutiques, primarily in Europe. Additionally, Nordstrom serves customers through its online presence at http://www.nordstrom.com and through its direct mail catalogs.

About ProfitLogicProfitLogic is the leading provider of Retail Profit Optimization solutions designed for retailers whose priority is getting the highest return on inventory investments. ProfitLogic's solutions provide merchants with day-to-day operational decision support and workflow for making better-informed assortment execution, allocation and fashion replenishment, promotion, pricing and markdown decisions. ProfitLogic has delivered fast, flexible solutions with significant financial benefit to industry leading retailers such as American Eagle Outfitters, AnnTaylor, Bloomingdale's, Charming Shoppes, The Children’s Place, Gap Inc., including: Gap, Banana Republic, Old Navy; JCPenney, Marshall Field's, Meijer Stores, New York & Company, Nordstrom, Northern Group Retail, Sears, ShopKo Stores, Target Stores and Toys R Us. For more information about Cambridge, Mass.-based ProfitLogic, call 617-621-5500 or visit www.profitlogic.com.