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LEWISTON, MAINE, AUGUST 5, 2005 - Diamond Phoenix today announced the award of a multi-million dollar contract by a major e-commerce retailer. The retailer, selling footwear, apparel and accessories, has selected Diamond Phoenix to design and integrate an order fulfillment system that includes the largest horizontal carousel system ever built, measured by cubic feet of storage space.

The system is made up of 120 carousels, each with 6,300 cubic feet of storage, for a total of 756,000 cubic feet of storage for the entire system. The retailer’s main goal was to control fulfillment costs in a direct-to-consumer environment with literally tens of thousands of orders per day. Because the cost per unit shipped is expected to be reduced significantly, the new system will allow the retailer to react to dramatically increasing volumes without increasing the cost of fulfillment.

The system is expected to be operational in the first half of 2006. Key to its success is a series of major innovations across all elements of the carousel system - mechanics, controls and software. “We believe the innovations developed for this application set the stage for implementing carousel technology, easily and cost effectively, in a variety of new industries, including apparel and footwear. The cost per cubic foot of storage has been reduced by up to 40%, allowing productivity increases to significantly improve ROI for our clients,” states Tom Coyne, CEO of Diamond Phoenix.

Diamond Phoenix is a leader in material handling systems, with a superior design and integration team, advanced software solutions like the DiamondWare Warehouse Execution System WES™ 3.0, and a full suite of technologies including the POWERdepot™ Vertical Carousel, SMARTdepot™ Vertical Lift Module, DirectPick™ Paperless Picking Systems and Diamond Horizontal Carousels. Diamond Phoenix is headquartered in Lewiston, Maine with offices in Philadelphia, PA, Charlotte, NC, Grand Rapids, MI, Los Angeles, CA, Cincinnati, OH, Cleveland, OH, and London, England.