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VSAT On A Roll
illustration only Germantown - May 25, 1999 - Hughes Network Systems (HNS) announced that Les Schwab Tires, a retail tire store chain and tire retread manufacturer, is replacing its terrestrial-based network with a very small aperture terminal (VSAT) satellite network from HNS to enhance its internal communications and improve inventory controls and customer service. HNS is the world�s leading provider of VSAT networks.

Les Schwab Tires purchased the HNS PES VSATs to enhance a communications network that allows the company to track inventory, access customer account information, transmit price updates to its stores, and transmit daily sales information from the stores to headquarters. The HNS VSAT system also will enhance the company�s AS/400 computer systems, making them an even better tool for store personnel.

"The fact that VSATs will free up dedicated phone lines at our stores and provide for faster, more reliable data transfer which will cut our costs, led us to investigate the possibility of implementing a satellite system," said Todd Crappa, supervisor of AS/400 and store systems support for Les Schwab Tires. "After evaluating two VSAT providers, we chose HNS because of their proven reliability and experience with AS/400�s."

Weather conditions in the Pacific Northwest, where Les Schwab Tire stores are located, also led to the decision to install a VSAT network. "VSATs provide more reliability than terrestrial systems in Pacific Northwest weather conditions," said Crappa.

Improved customer service is another benefit Les Schwab Tires expects to receive from the HNS VSAT system. The VSAT network will allow credit cards to be processed at greater speeds, which will lead to less waiting time for the customer. Also expediting customer service is the fact that in one interactive application, it will take the retail store only six to seven seconds to retrieve information from the headquarters computer system with the VSAT system. Previously, it took three to four minutes to retrieve the same information.

"In a retail setting improving customer service can provide a company like Les Schwab with a competitive edge, and VSAT technology is a cost effective and reliable way to enhance customer satisfaction," said Dennis Conti, senior vice president, Satellite Networks Division of HNS. "VSATs give employees the quick access to information that they need to better serve the customer."

Other benefits include using the HNS VSAT network for real-time shipment inquiries and file broadcasting of company software updates. In the future, Les Schwab Tires plans to use the VSAT network for the company Intranet, for training employees through video conferencing, and for access to warranty information, price books and detailed product information graphics.

The HNS VSATs will be installed at 300 Les Schwab Tire locations, providing communications through a shared hub and then onto the headquarters data

center. The PES effectively supports data-intensive applications and, at the same time, provides excellent response times for interactive applications.

Les Schwab Tires

Founded in 1952, in Prineville, Oregon, privately owned Les Schwab Tires has grown to one of the nation�s largest independent retail tire store chains. Les Schwab Tire centers offer complete tire service from lawn mower tires to large earthmover tires in Oregon, Washington, Alaska, Idaho, Montana, California and Nevada.

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