CARTERET, NJ — September 11, 2007 — Pathmark Stores, Inc. (Nasdaq: PTMK), announced today that it will work with Evolution Robotics Retail, Inc. and IBM to deploy the LaneHawk Visual Scanning Solution in 10 area stores to combat bottom-of-basket (BOB) loss.

"Having BOB items walk out the door without being paid for is a big — and growing — problem that grocery retailers have tried to address for years," said Bob Oberosler, Senior Vice President of Asset Protection for Pathmark. "We went so far as removing the bottom racks from our carts in some of our stores, but this was costing us significant revenue and putting us at a competitive disadvantage. We also tested other devices to alert the cashiers to BOB items, but none of these other approaches worked. LaneHawk is the only product that solves the BOB loss problem."

Until now, most efforts to reduce BOB loss have depended on cashiers visually checking the bottom of customers' carts — using mirrors, stickers, training, or other detection devices — and then manually scanning those items. With current pressure to increase checkout productivity, it is difficult for cashiers to consistently check for BOB items. Using its patented visual pattern recognition (ViPR®) technology, LaneHawk is able to detect, identify, and present BOB items directly to the point of sale, enabling cashiers to add those items directly to the transaction.

"Since we started using LaneHawk, we have been able to reduce BOB shrink by 90%, resulting in approximately a 50 basis point improvement in our grocery shrink," said Pedro Ramos from the Loss Prevention Unit at Pathmark. In addition to helping Pathmark transact BOB items at the point of sale, LaneHawk's item recognition enabled tracking cashier performance, which Pathmark successfully used to identify and terminate a cashier who admitted to "sweethearting" more than $1,000 worth of product. Said Ramos, "without LaneHawk, we don't catch this type of collusion for months, if ever. LaneHawk created a new means of detecting collusion which was virtually impossible prior to LaneHawk."

The stores will begin implementation in September 2007. "We are pleased to move forward and deploy additional Pathmark stores. LaneHawk successfully reduced shrink and improved per store profitability," noted Alec Hudnut, Chief Executive Officer of Evolution Robotics Retail.

IBM Global Technology Services, an Evolution Robotics Retail partner, helped Pathmark integrate LaneHawk into their current IT environment. "In selecting to partner with Evolution Robotics Retail, we are confident that LaneHawk will help maintain the positive customer shopping experience while reducing loss for our retail clients," said Jeanne Jang, IBM global lead for digital video surveillance. "LaneHawk, along with IBM's complete portfolio of Digital Video Surveillance and Point-of-Sale solutions, represents another key solution to assist retailers in the area of loss prevention."

Pathmark Stores, Inc., based in Carteret, NJ, is a regional supermarket chain currently operating 142 stores primarily in the New York, New Jersey, and Philadelphia metropolitan areas (www.pathmark.com).

Evolution Robotics Retail, Inc., is based in Pasadena, CA, and develops intelligent products and solutions for the retail industry based on ViPR®, which is considered the "gold standard" implementation of scale-invariant feature transformation (SIFT) algorithms. The company's flagship product is LaneHawk™, a Visual Scanner for preventing Bottom-of-the-Basket (BOB) loss. The technology behind LaneHawk is installed in over 2 million machines worldwide. Evolution Robotics Retail is a subsidiary of Evolution Robotics, Inc., and is an operating company of Idealab, a creator and operator of technology businesses (www.evoretail.com).