Innotrac Corporation Announces Multiyear Agreement to Provide Warehouse Distribution Services for Direct Holdings Americas Inc.

ATLANTA, Aug. 10 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq: INOC), a leading full-service provider of  product fulfillment, order processing and Customer Care services for direct-to-consumer marketers, today announced that it has signed a multiyear warehouse distribution agreement with Direct Holdings Americas Inc., a leading direct-to-consumer retailer of entertainment and media products.  Direct Holdings Americas Inc. is the exclusive marketer of Time Life-branded music and video products in the United States.  Direct Holdings Americas Inc. uses the Time Life trademark under license from Time Warner Inc. and Time Inc., with which it is not affiliated.  Direct Holdings Americas Inc. utilizes multi-channel marketing to reach a wide variety of customers.  Direct Holdings Americas Inc. multi-channel strategy includes:

• Direct Response TV (DRTV)
• E-commerce
• Direct Mail
• Telemarketing
• Traditional Retail
• Special Markets

"DHAI and Innotrac partnered to complete the transfer of our music and video warehouse operations and the entire process has exceeded our expectations.  We have seen immediate benefits in service relating to efficient order fulfillment and returns processing, which translates into an improved customer experience and reduced costs," said Lange Johnson, Vice President of Operations, Direct Holdings Americas Inc.  

"Other benefits include better packaging quality and having our shipments processed and delivered faster," added Jamie Ciferno, Director of Operations.  "We have also added the ability to track packages, which has improved our ability to handle calls from our customers. This is really a huge improvement and we are very excited about the change."    

"Direct Holding Americas Inc.'s decision to entrust Innotrac with their brand, a brand that stands for the highest quality, is a reflection of Innotrac's strong service reputation and proven expertise in supporting multi-channel partners. We are pleased with our ability to partner with Direct Holdings Americas Inc. and make the necessary investments, process and technical changes to improve their warehouse operations.  The success is a testament to our continued investment in infrastructure and the flexibility we've built throughout our organization," commented Jim McMurphy, CIO of Innotrac.  "The addition of this new world-class brand as a partner confirms and strengthens Innotrac's position as a leading fulfillment provider for multi-channel marketers across the U.S."

About Direct Holdings Americas Inc.

Time Life and the Time Life logo are registered trademarks of Time Warner Inc. and affiliated companies, used under license by Direct Holdings Americas Inc., which is not affiliated with Time Warner Inc. or Time Inc. Headquartered in Fairfax VA, Direct Holdings Americas Inc.'s history began in 1961 as a direct marketing division of Time Incorporated specializing in books. The business has been operated as a separate company since the mid-1970s when it relocated to Virginia, and has since grown to become one of the largest direct marketers of audio and video products throughout North America. Direct Holdings Americas has set the standard in the direct response industry by pioneering direct marketing techniques and building one of the most trusted and recognized brands in commerce. The Company now also sells its products through major traditional and non-traditional retailers as well as via the Internet. Direct Holdings Americas was sold in 2003 to private investors.

About Innotrac

Innotrac Corporation, founded in 1984 and based near Atlanta, Georgia, is a technology-based integrated fulfillment and Customer Care solutions provider serving enterprise clients and world-class brands.  The Company employs sophisticated order processing and warehouse management technology and operates seven fulfillment centers and one call center spanning all time zones across the continental United States.  For more information about Innotrac, visit the Innotrac website, www.innotrac.com.

Information contained in this press release, other than historical information, may be considered forward-looking in nature.  Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected.  Among the key factors that may have a direct bearing on Innotrac's operating results, performance or financial condition are competition, the demand for Innotrac's services, Innotrac's ability to retain its current clients, Innotrac's success in growing its existing client base, developing new business, reducing operating costs in response to reduced service revenues, realization of expected revenues from new clients, the general state of the  industries that the Company serves, changing technologies, Innotrac's ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac's 2008 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission.  Innotrac disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise.

SOURCE Innotrac Corporation

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