Jumbo Celebrates 10th Year with Expansion into Online Pharmacy Products

Apr 5, 2005

ASX RELEASE – Tuesday 5th April 2005

Jumbo Corporation Limited (JUM) is pleased to announce the public release of the JumboPharmacy website at www.jumbopharmacy.com.au. The JumboPharmacy offers over 4,000 products ranging from general medicine and baby care to vitamins and personal care. This latest product line expands the range of Jumbo’s “Internet Friendly” goods that already includes luxury items such as fragrances and cosmetics, computer items such as software and other items including lotteries.

“Internet friendly goods are those that are well suited to online selling”, said Mr Mike Veverka, CEO of Jumbo Corporation. “Pharmacy goods are ideal because they are easily posted and customers often prefer to purchase these goods in the privacy of their own home. Repeat orders are also common and handled by the Jumbo order reminder service”. STRATEGIC ALLIANCE WITH PHARMACY ONLINE A strategic alliance has been formed with Pharmacy Online to provide product expertise and fullfillment functions. Pharmacy Online is Australia’s 4th largest online pharmacy with 8 years experience in online retailing of pharmacy products and 40 years pharmacy experience. Pharmacy Online is based in Sydney and sources the products from two large family owned Pharmacies in Sydney. The strategic alliance will combine Jumbo’s online marketing skills with Pharmacy Online’s product suppliers and knowledge of the industry. “Pharmacy Online was selected as a suitable partner for the JumboPharmacy because of their understanding of online requirements as well as product range and industry knowledge”, said Mr Veverka.   EXPANSION THROUGH NEW PRODUCT LINES The addition of Pharmacy products is a continuation of JUM’s strategy of expansion through new product lines. JUM’s focus is on “Internet Friendly” products that prove to sell well online and exhibit traits such as easy posting, customer acceptability with buying online and repeat orders. Once a customer completes their first online purchase, confidence increases and often leads to further purchases.   10th YEAR PROMOTIONS The launch of the JumboPharmacy coincides with the company’s 10th year promotions that will continue throughout 2005. The aim of these promotions is to raise consumer confidence in buying online from Jumbo and to position the company as a safe and well-established online retailer. “Jumbo’s 10 year history is a valuable asset with only a few online retailers in the world able to claim this history”, said Mr Veverka. “Jumbo intends to use it as a competitive advantage against the majority of other online retailers and position Jumbo as the safe alternative”. Promotions will be predominately online where cost-effectiveness is strong. These promotions will include: 1. Customer Emails. Regular email updates are sent to the existing customer database of over 300,000 customers. 2. Search Engine Traffic. Customers are found from popular search engines such as Google, Yahoo and MSN using a combination of free and paid listings. 3. Referrals from Affiliates. Other companies with skills in online marketing are offered a commission of sales resulting from customers referred to Jumbo. 4. Cross Selling. Efforts will be made to encourage customers to purchase multiple product lines in a single purchase.   ONLINE LOTTERY TENDER As announced on 4th March 2005, JUM has submitted a tender for the operations of the online component of a well established lottery business. The company has been informed that the awarding process has been delayed and no firm date has been given. JUM will keep the market informed with developments.   For further information, please contact: Mike Veverka, CEO Email: mike@jumbocorporation.com Web: www.jumbocorporation.com


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