1. Georgia Tech Discussion Mike Alber V.P. of Operations

2. School Specialty Overview School Specialty is an education company that provides innovative products, programs, and services to help PreK-12 educators engage and inspire students of all ages and abilities. School Specialty goes to market through print, on-line catalogs and an outside sales force across 30 brands. School Specialty (SCHS) is a publicly traded company with an annual revenue of about $750 million.

3. Our Network We operate out of six distribution centers: Fresno, CA Salina, KS Appleton, WI Mansfield, OH Lancaster, PA Nashua, NH (primarily Science kitting operation) We also have an Agenda printing operation in Bellingham WA, and a Furniture manufacturing operation in Lancaster PA.

4. Network Statics – FY 10 Operations (in millions)  Shipments - 2.5  Lines - 15.8  Cartons-6.1  Weight (lbs)- 109.7 Expense (in millions)  Labor- $13.2  Other-$7.3  Freight / Outbound $27.2 Inventory  Stocked SKU’s vary by DC - 8,500 to 41,000  Network Inventory from $85 - $130 million Other  Facility Sq. Footage – 140,000 to 380,000  Total network - 1.7 million Sq. Feet

5. Operational Flow Discussion Inbound  Receiving Freight - Truckload and LTL Parcel  Putaway  Replenishment Outbound  Order Filling Vendor Case Split Case Non-Conveyable  Shipping Parcel Freight

6. Freight Receiving

7. Pallet Breakdown

8. Receiving Worksheet

9. Pallet / Carton Putaway Label - LPN

10. Bulk Storage Area

12. Bulk Putaway – Less than pallet qty’s

13. Parcel Receiving Work Station

14. Parcel Receipts – Staged for Split Case Putaway

15. Carton Flow pick area

16. Carton Flow Pick Facing

17. Carton Flow – “Pick-to-Light” Wedge Scanner

18. Two Level Bin Operation

19. Bin Operation – Split Case

20. Bin Aisle

21. Bin Pick Facing – High Velocity SKU’s

22. Bin Filling

23. Carton Content and Shipping Label Placement

24. Carton Content and Shipping Label

25. RF Gun

26. Packing area

27. Packing Area and conveyors to Shipping

28. Packing Slip

29. Void Fill Process

30. Carton Sealer

31. Freight Lanes

32. Freight Lane

33. Conveyor feed to UPS truck

34. Questions prior to Cartonization Discussion? End of Operations Discussion

35. Cartonization - Good

37. Cartonization- SKU dimensional issues

38. Cartonization Opportunity