CVS Expands Use of IntelliVid's Intelligent Video Analysis Solution to Reduce Shrink

IntelliVid

CVS Expands Use of IntelliVid's Intelligent Video Analysis Solution to Reduce Shrink

February 13, 2006

CAMBRIDGE -- IntelliVid Corporation, the leader in intelligent video analysis software for retail loss prevention, today announced that CVS , the country's largest drugstore chain with 5,461stores in 37 states, has expanded the use of its Video Investigator™ software in several regions.

After piloting IntelliVid's technology in one high-risk store in the Boston area, CVS has now installed Video Investigator in several stores throughout the country.

Video Investigator transforms retailers' existing CCTV/DVR systems from static recording devices into active theft prevention solutions, enabling them to take a proactive role in preventing theft, rather than just recording it. As a leader in combating in-store theft, CVS has consistently posted one of the lowest shrink rates in retail. Consistent with this performance, CVS has pioneered the use of intelligent video analysis and was the first retailer to select IntelliVid's Video Investigator.

CVS' loss prevention (LP) team relies on Video Investigator's patented Intelligent Video Analysis (IVA) technology for several critical LP activities, including asset tracking functionality and enhancing the ability to monitor high-valued merchandise with Video Article Surveillance. Using Video Investigator, CVS has gained tremendous insights into theft activities in its stores, particularly organized retail crime, one of the leading contributors to the $30+ billion theft problem plaguing US retailers.

According to Ernie Deyle, vice president of loss prevention at CVS, "We are laser-focused on reducing shrink while at the same time improving customer service. Video Investigator is an important tool in our arsenal to achieve both of these goals. In addition to helping to reduce shrink, I'm also excited about Video Investigator's potential for delivering critical insights into product merchandising practices to help us reach our operational and merchandising objective, which is to be the easiest pharmacy retailer for our customers to shop."

"We are pleased that CVS is now rolling out our solution to a broader set of stores," said Patrick Sobalvarro, president and CEO of IntelliVid. "As the first drugstore chain to deploy Video Investigator and a leader in the loss prevention retail community, CVS is taking an important, industry-leading step in reducing theft in its stores in addition to driving overall customer satisfaction."

About CVS

CVS Corporation operates retail drugstores in the United States. It offers prescription drugs, as well as general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photofinishing services, seasonal merchandise, greeting cards, and convenience foods. The company sells its products through CVS/pharmacy retail stores and online through CVS.com. It also provides pharmacy benefit management, mail order services, and specialty pharmacy services. As of October 1, 2005, the company operated 5,461 retail and specialty pharmacy stores in the United States. CVS Corporation was founded in 1892 and is headquartered in Woonsocket, Rhode Island. For more information, visit www.cvs.com.

About IntelliVid

IntelliVid provides intelligent video analysis solutions to large retailers faced with profit-consuming shrink. Its Video Investigator software unleashes the full potential of their existing video infrastructure, enabling loss prevention professionals to identify theft incidents quickly, gather critical video evidence and manage case investigations efficiently. Unlike traditional video solutions, which merely record theft, Video Investigator monitors high-loss items and instantly identifies theft incidents automatically using existing video systems. The patented technology also enables retailers to track customer traffic, detect stock-outs, identify safety issues, and more.

Headquartered in Cambridge, Massachusetts, IntelliVid is backed by Intel Capital, Flagship Ventures, Egan-Managed Capital and DFJ New England. Its customers include leaders in the chain drug store, department store and discount retail segments. For more information, visit www.intellivid.com.