Instill Launches into Quick Service Restaurant Market, Delivering Purchase Tracking System to IPC for More Than Thirteen-Thousand SUBWAY Restaurants in U.S. and Canada

This agreement comes on the heels of Instill's most recent announcement that it is focusing its product offerings to provide an all-encompassing supply chain management solution for chain operators and their suppliers. The demand for effective tracking of food purchases, e-procurement and demand forecasting has grown significantly within the industry and Instill is focusing its efforts to meet those needs.

Miami-based IPC and its SUBWAY® franchisees are Instill's first quick service restaurant clients, a highly competitive market segment with sales forecast to reach $112 billion in 2001. IPC and SUBWAY® join over 30 chain restaurants already benefiting from Instill's e-business services.

"A significant area where we are working to improve practices for SUBWAY® franchisees is within purchasing and supply chain management with a special focus on managing the distribution channel," said Jan Risi, CEO of IPC. "Using Instill's services, we can manage contract compliance between suppliers and units and analyze total system-wide purchases for more effective contract negotiations. We expect to generate significant cost-savings on the more than $1 billion per year that SUBWAY® restaurants spend on food."

This agreement also comes at a pivotal time for SUBWAY® as the company continues its explosive growth, having opened 600 new franchises and increasing average store sales volume by more than 20 percent in the past year. Instill Purchase Insight will consolidate and report on all food purchase activity between SUBWAY®'s more than 13,000 franchisee units and their suppliers across the United States and Canada.

"For the past eight years, Instill has been helping enterprise-level casual dining restaurants and contract management firms manage their foodservice business more effectively," said Anthony Wilson, president and COO, Instill. "Our partnership with IPC to support SUBWAY® restaurants now validates the effectiveness of our e-procurement and purchase tracking tools into the quick service industry."

Instill will provide report activity to IPC beginning with food purchases from SUBWAY® units starting from September 2000.

About SUBWAY®

Co-founded in 1965 in Bridgeport, Conn., by Fred DeLuca and Dr. Peter Buck, SUBWAY® restaurants remains one of the most popular franchise systems, allowing entrepreneurs an opportunity to build and succeed in their own business.

About IPC

IPC, owned by SUBWAY® franchisees, provides purchasing and supply chain management services to the SUBWAY® restaurant system. IPC's mission is to negotiate the lowest costs for purchased goods and services, improving quality and enhancing competitiveness and insuring the best value to SUBWAY® franchisee members and their customers.

About Instill Corporation

Instill has been providing e-Business services to the foodservice industry since 1993, delivering procurement, supply chain and information solutions to operators, distributors, and manufacturers. The company services and links thousands of operators with their key distributors. Some of the operators using Instill services include Applebee's International, Delaware North Companies, Fine Host, Five Star, Lettuce Entertain You Enterprises, Marie Callender's and Sodexho Marriott Services. With over 160 employees, Instill is headquartered in Redwood City, California. Instill can be reached at 888-Instill or visit Instill's Web site at www.instill.com.

Note to Editors: Instill is a registered trademark and Instill Purchase Insight is a service mark of Instill Corporation. All other trademarks and registered trademarks are property of their respective holders.