American Apparel is a leading brand for young adults, and is well known forcutting-edge advertising and product branding, as well as establishingitself as an innovation leader in the use of RFID for next generationin-store systems. Its "Made in Downtown LA" operations have contributed tosignificant brand awareness and a cult status worldwide. American Appareluses a vertically integrated business model, which minimizes the use ofsub-contractors and offshore labor. With over 225 retail stores today,and plans to grow significantly in the next several years, establishing arepeatable, scalable store item-level inventory management solution is akey component of American Apparel's aggressive growth plans.

"We are excited about the prospect of helping American Apparel to manageout-of-stock issues and item level security in their stores," said DougWallace, Chief Operating Officer of Xterprise. "American Apparel is arecognized leader in the use of RFID technology to solve business problemsand we are pleased with the opportunity to pilot our solution in theirstore environment."

The Clarity-ARS Store Inventory Management solution from Xterprise wasselected for the pilot because of its out of the box item-level inventorymanagement functionality and proven ability to scale to address thecomplexities and volumes found in retail store networks. The solutionuses Microsoft BizTalk Server 2006 R2 and its BizTalk RFID capabilities,providing enterprise-class scalability at a low total cost of ownership.Anticipated benefits include increased sales and customer service, reducedout of stocks, and greater security and loss prevention. American Apparelwill also be able to use advanced business intelligence to better respondto stock movements and in-store consumer behavior. "With mountingcompetition and consumer expectations, retailers must tap into the nextgeneration of store-level technologies to deliver an exceptional customerexperience at the store," said David Gruehn, U.S. retail industry director,Microsoft Corp. "Xterprise's Clarity-ARS Advanced Retail System solution,using Microsoft BizTalk RFID, will help American Apparel optimize inventoryavailability on the selling floor and respond more effectively to shopperswants and needs in a way that will differentiate their experience at thelocal level."

About American Apparel

American Apparel is a vertically integrated manufacturer, distributor, andretailer of branded fashion basic apparel based in downtown Los Angeles,California. As of September 30, 2008, American Apparel employed over 10,000people and operated more than 225 retail stores in 19 countries, includingthe United States, Canada, Mexico, Brazil, United Kingdom, Austria,Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden,Switzerland, Israel, Australia, Japan, South Korea, and China. AmericanApparel also operates a leading wholesale business that supplies highquality T-shirts and other casual wear to distributors and screen printers.In addition to its retail stores and wholesale operations, American Appareloperates an online retail e-commerce website athttp://store.americanapparel.net.

About Xterprise

Xterprise Incorporated was founded in 2002 as a provider ofenterprise-class RFID (Radio Frequency Identification) applications. Todayour solutions combine Microsoft platform technology, continuous improvementand lean supply chain expertise, enterprise supply chain systemsintegration along with RFID and other sensory technology to deliverpreviously unachievable levels of visibility, assurance, accuracy, processimprovement and value to our clients. The growing list of Xterprisecustomers includes Alcon, Allergan, Chicken of the Sea, Corning,Continental, Dairy Fresh, Dial, Eureaka, ExxonMobil, General Mills, GeorgiaPacific, Kraft, iGPS, Intel, L'Oreal, Nokia, Samsung, SchoellerArcaSystems, ShopVac, The Libman Company, The US Department of VeteransAffairs, TIMCO Aviation Services, TNT Express, Toyota Motors N.A. and manyothers. Xterprise has been recognized as the 2008 Microsoft RFID Partner ofthe year and is ranked as one of 30 fastest growing software companies inAmerica by the Inc. 500. The Xterprise headquarters is located inCarrollton, Texas (Dallas/Fort Worth). For additional information call+1-972-690-9460 US, email info@xterprise.com or visit www.xterprise.com.

Brand names mentioned herein are the trademarks of their respectiveowners.

MEDIA CONTACTSJim CaudillSenior Vice President of Marketing and StrategyXterprise IncorporatedEmail Contact+1 972-690-9460Howard LaMunionPublic Relations for XterpriseConsulttus Group IncorporatedEmail Contact+1 214-601-0977