School Specialty Inc.: Announces the upcoming build-out of its Mansfield, OH distribution center to enhance customer service and delivery functions and support business growth

CONTACT:
Company Contact:
Glenn Wiener
GW Communications (for SSI)
IR@SchoolSpecialty.com
Tel: 212-786-6011

Dionne Manchester
GW Communications (for SSI)
Dionne@GWCco.com
Tel: 212-786-6068


Company to Maintain Its Distribution Center in Greenville,
and Make Mansfield Its Primary Warehouse and Distribution
Center Going Forward, Given Proximity to Customer and
Supplier Base

MANSFIELD, Ohio and GREENVILLE, Wis., Feb. 19, 2014 (GLOBE NEWSWIRE) —
School Specialty Inc. (OTCQB:SCOO) (“SSI” or “the Company”), a leading
distributor of supplies, furniture and both supplemental and curriculum
products to the education marketplace, today announced that it will be
expanding its distribution center in Mansfield, OH, making it the
primary warehouse and distribution hub, serving the Company’s
nationwide customer base. As part of the announcement, the Company
disclosed today that it would be hiring up to an additional 550
seasonal workers to support its peak-season (July-September)
requirements, as well as approximately 30 full-time employees in the
local Mansfield area.

As part of this build-out and in conjunction with the Company’s Process
Improvement initiatives, School Specialty is currently consolidating
distribution operations in order to enhance operational efficiencies
and improve customer fulfillment rates. The Company had recently closed
two of its distribution centers in Salina, KS and Fresno, CA, and
successfully transitioned inventory to both its Greenville, WI and
Mansfield, OH locations. School Specialty is now in the process of
reconfiguring its warehouses and implementing lean principles, as it
looks to build best-in-class practices throughout its manufacturing,
operations, and supply chain management function areas. The Company’s
primary distribution facility is located at 100 Paragon Parkway in
Mansfield, OH and SSI has leased a new, 162,000 square foot offsite
facility where it will stock educational supplies and furniture in
advance of the upcoming peak-season.

“A large number of our customer orders are derived on the East Coast,
as are many of our key suppliers, and by transitioning to these two
centers, we will have more control over inventory management, logistics
and customer shipments,” said Jim Henderson, Chairman and Chief
Executive Officer. “We have transitioned inventory accordingly and have
made significant progress in consolidating and re-configuring our
facilities to reduce splits and backorders and lower transportation
costs, and most important, ensure seamless and quick shipments to our
customers. I am a firm believer in running a business based on customer
needs and then exceeding them, and these changes in our distribution
centers and others in our operations will help us produce and deliver
products for our customers on-time as we seek 100% customer
satisfaction.”

The Company recently hired Rick Smith, formerly of United Stationers
and UPS, as its new Director of Distribution Center Operations in
Mansfield, OH. Rick will oversee best-in-class programs for quality
management, distribution center alignment, inventory management, sales
and budget planning, supply chain management, and customer loyalty and
care, among other operational processes.

“We are pleased that School Specialty has made Mansfield its home over
the last 20 years. Our partnership is an exemplary model of how we are
striving to build and diversify our economy by collaborating with
organizations that create jobs and bring investments into the area; not
to mention, contribute to the educational and cultural enrichment of
the community,” said Bridget McDaniel, Executive Director of the
Richland Community Development Group (RCDG) and Business/Economic
Development Chair for the Richland Area Chamber of Commerce. “Working
with an innovative company such as School Specialty to expand business
in Mansfield is vital to executing our economic growth initiatives. We
look forward to many more years of mutual cooperation and success.”

Crucial to the consolidation of operations into the Mansfield
Distribution Center is SSI’s implementation of system enhancements that
will ensure both the Mansfield and Greenville facilities are
communicating effectively and have insights into inventory, fill rates
and customer delivery schedules. Initiatives to increase both inbound
and outbound processing of customer orders are underway and the Company
has invested in a complete re-alignment that is expected to double
capacity and increase speed; set new standards for efficiency and
create best work practices; with the end-goal to ultimately improve
overall customer satisfaction. Inventory management is critical to this
and ties directly to SSI’s Rationalization programs aimed at
re-configuring SKU mapping within both distribution centers.

Mr. Henderson concluded, “School Specialty remains committed to the
Mansfield community. The Company has been a part of the Mansfield
fabric for nearly two decades and we hope to be here for a long time to
come. We’re grateful for the opportunity to contribute to the area’s
economic and social development and would like to thank the local
government, chamber of commerce and related personnel for their
continued support as we build our presence in the area.”

About School Specialty, Inc.

School Specialty is a leading distributor of innovative and proprietary
products, programs and services to the education marketplace. The
Company designs, develops, and provides educators with the latest and
very best school supplies, furniture and both curriculum and
supplemental learning resources. Working in collaboration with
educators, School Specialty reaches beyond the scope of textbooks to
help teachers, guidance counselors and school administrators ensure
that every student reaches his or her full potential. For more
information about School Specialty, visit www.schoolspecialty.com.