SAN RAMON, CA - December 11, 2007 - Hokura LLC has announced the successful implementation of a vendor management system for the San Francisco Bay Area-based Mervyns department store chain. The Mervyns Vendor Management (MVM) system has made the social complaince management process more efficient through enhanced data management.

"We reduced our compliance management workload by about 50 percent going
from a manual process to an automated system," says Elizabeth Fortunato,
Director of Sourcing, Mervyns.

Mervyns department store has a well-earned reputation for its extensive selection of national and private-label fashions and housewares. With a 58-year tradition of being a good neighbor, Mervyns is committed to Corporate Social Responsibility (CSR). The Mervyns Factory Audit and Social Accountability compliance program ensures that Mervyns private label vendors agree to the company's standards for vendor engagement before doing business with Mervyns.

In the past, tracking the documents that verify compliance was a completely manual process. Mervyns needed a system to automate certain functions so that the compliance team could focus on other responsibilities.

Mervyns retained Hokura in 2004 to build the MVM system from scratch. MVM is a web-based solution that houses Mervyns private label vendor and factory profiles. MVM automates the invoicing, audit scheduling, tracking, reporting and record keeping compliance management processes.

The Mervyns Brand Compliance team uses MVM to see which vendors have
agreed to comply with the standards of engagement, ensure that all private label vendors register their factories, and track factory audit results.

Developed through an iterative process, MVM has been in use since 2005 and now profiles 630 vendors and 1,778 factories. MVM was later integrated with Mervyns product specification and item setup systems. MVM has made the complaince management process more efficient through enhanced data management. It not only saves time but also reduces errors. The system eliminates confusion and potential duplication of effort among vendors and third-party auditors by enabling collaboration among all parties.

"Mervyns and our vendors, third-party auditors and agents all agree that MVM enables us to be at the forefront of technology in the industry," says Becky Nesmith, Mervyns Director of Operations, Product Design & Development.

Because it is a Web-based system, MVM allows Mervyns, its vendors, third-party auditors and agents to access real-time, up-to-date data 24/7. This saves time in the communication channel, and gives internal and external users better visibilty into all data. Vendors can view audit statuses for their factories, auto-generate invoices, and receive alerts when their factories are up for re-audit.

The system also enables audit lead-time tracking and performance management. MVM has reduced audit cycle time, enabling Mervyns to expedite the factory approval process and, as a result, speed up the supply chain.

About Hokura LLC
Hokura's mission is to automate the retail supply chain for transparent CSR compliance management, so companies can hold their business partners
accountable for ethical human rights, labor and environmental practices.
Our vision is to eliminate the check-box approach to CSR compliance and
replace it with an ethics-based selfregulated approach, where suppliers
comply because it’s the right thing to do. Visit Hokura at www.hokura.com.

About Mervyns LLC
Mervyns LLC, headquartered in the San Francisco Bay Area, is a family-friendly promotional neighborhood department store offering trend-right fashions and home decore for the entire family at affordable prices. Founded by Mervin G. Morris in 1949 with only 2,800 suare feet and two
employees, Mervyns now operates 176 stores in eight states and employs more than 23,000 associates. Visit Mervyns at www.mervyns.com.

For more information, contact Hokura Co-Founder Kumaran Perumal at 925-415-2359 or email contactus@hokura.com.

HOKURA LLC

HOKURA LLC

Hokura’s mission is to automate the retail supply chain for transparent CSR compliance management, so companies can hold their business partners accountable for ethical human rights, labor and environmental practices. Our vision is to eliminate the check-box approach to CSR compliance and replace it with an ethics-based self-regulated approach, where suppliers comply because it’s the right thing to do. Hokura values honesty, integrity and trust.

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