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Company Sets Sights on UK and Additional Markets for its Customisable
Procurement Software in 2008

London, January 15, 2008 – Birch Street Systems, a leading provider of customisable e-procurement and back office automation solutions, today announced that it is to proactively enter the UK market. With the success of its global and European client-base, the software company is now looking to expand its base further into the UK. The push will build on the existing UK user base of high profile hotel chains (such as Marriott International and Hilton International, as well as all of their UK suppliers) that have selected Birch Street Systems as their partner-of-choice in helping them to streamline their back office applications. The company's e-Procurement system, a suite of web-based applications delivered using a Software as a Service (SaaS) model, is designed to help an enterprise leverage its buying power, automate back-office processes and tighten financial controls.

"We are honoured to be working with such a fine array of top companies within the hospitality and food service arenas and excited about expanding more into the UK," said Doug Sanborn, Birch Street's president and CEO. "With each of our customers, our goal remains the same: to provide an optimised, high value solution through the use of our innovative e-procurement system. Birch Street Systems prides itself on providing users with a seamless solution designed to enhance productivity and positively impact the bottom line."

Recently, Omni Hotels, which operates 39 first-class and luxury hotels and resorts throughout the United States, Canada and Mexico, selected Birch Street Systems to host its online e-Procurement System. Utilising Birch Street's solution, Omni Hotels will now be better equipped to automate and track procurement procedures, as well as access activities across its properties on a global scale.

In 2007, Birch Street Systems was selected by the Global Hyatt Corporation, as the de facto standard for e-Procurement and back office systems solutions. As part of the agreement, Hyatt will utilise Birch Street's Application Suite to streamline purchasing, inventory and food cost management across all Hyatt locations worldwide. The InterContinental Chicago, one of the city's finest hotels, also chose Birch Street Systems for procurement and back office automation. Utilising Birch Street's Single Property Solution (SPS), the luxury hotel now has the ability to automate and leverage its 30,000 integrated industry suppliers.

2007 began for Birch Street Systems with the expansion of an agreement already in place with luxury property Beverly Hilton. Under the terms of the agreement, the hotel now employs Birch Street's Inventory Control module. With this latest module, the Beverly Hilton can now plan its purchasing activities in a fraction of the time it would take with a traditional paper-based process.

Late in 2006, Birch Street signed an agreement to provide its e-Procurement solution to Hilton International. As part of that agreement, a number of solutions have been implemented including hotels in France and Egypt. Birch Street’s implementation of the Sharm El Sheikh property in Egypt marks the first e-Procurement system ever implemented at any hotel in that country.

Also in 2006, Marriott International deployed the Birch Street across all of its hotels in the UK and all of Marriott’s UK suppliers had their catalogues uploaded and maintained in Birch Street.

According to Mark Koenig, vice president of research-based marketing strategy consulting firm Saugatuck Technology, “Birch Street recognised early that SaaS makes it possible to build industry-specific solutions for previously under served customers. SaaS-based back-office support in the hospitality industry appears to be a very ripe opportunity - especially for large and complex international operations.”

New Product Offerings Announced in last 12 months

During 2007 Birch Street announced the availability of several new product offerings that included its new Capital Projects Management suite for FF&E procurement related to hotel development and renovation projects. Carlson Hospitality has signed an agreement to license this product.

Birch Street also announced the availability of its new suite of AP Processing modules and its Wireless Alcohol Pouring Monitor offering.

Expanding to New Territories and New Markets in 2008

Not content to rest on the success it has garnered within the hospitality industry, Birch Street Systems is looking to 2008 as the year of new and diverse expansion into new industries that can seamlessly integrate the company's web-based software in a flexible, easy-to-use manner.

"We believe that the true value of our web-based e-procurement system has yet to be tapped," Sanborn noted. "There are many other industry segments that, like the hospitality and food and beverage markets, require a wealth of back-office logistics. The beauty of our solution is the ease with which we can customise it to meet the needs of different locations, users, customers or industries, while still capturing the benefits of a hosted solution."

Birch Street Systems plans to leverage its software technology solution into a host of other enterprises including hospitals, universities and other organisations that incorporate a number of different food and beverage vendors and suppliers.

"Wherever there are a myriad of suppliers providing a variety of different goods and services, our software provides a simple means to aggregate all necessary information from purchasing discounts to preferred brands into a centralised repository. This allows organisations to identify their collective buying power, improve operational execution and lower costs - effectively streamlining the entire back-office system," Sanborn added.

About Birch Street

Birch Street delivers its solution over the Internet, using the "Software as a Service" (SaaS) model, which reduces the total cost of ownership compared with the traditional method of buying and maintaining enterprise software.

Birch Street delivers its on demand eProcurement and back office solutions to some of the world’s leading hospitality companies,
including Hilton Hotels Corporation, Marriott International, Hyatt Hotels, Interstate Hotels and Resorts and Carlson Hospitality.

Multi-lingual and multi-currency capable, over 1,000 locations use Birch Street’s full-featured, full-service procure-to-pay solutions in North America, Central America, Europe and Asia. Birch Street's solutions represent the "best of the web" capabilities to mid-tier and global hospitality and food service companies. Birch Street allows customers to reduce the risk, complexity and cost associated with large-scale regional or worldwide procurement and back-office solutions, while empowering business users and delivering unprecedented ROI. The application suite includes e-procurement and Request for Quote (RFQ); budget tracking and workflow; recipe management, alcohol monitoring and menu engineering; inventory and receiving; AP automation; and FF&E/capital projects management. Headquartered in Newport Beach USA, the company is managed by a team of enterprise software veterans.

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