To support a true luxury performance culture at DFS, we are developing leaders and staff in new and exciting ways including Shared Learning Experiences, Apprentice to Master Luxury Service training, and more. Our rewards and recognition programs needed to evolve with our culture and to focus not only on sales and financial performance, but rather on the stories that describe the leadership, support, selling and service behaviors necessary to create truly exceptional customer experiences. Sales and profits are the end result of exceptional customer experiences.

In December 2009, Mr. Brennan announced the formation of Prism Rewards, the new rewards and recognition program for all of us at DFS which launched early in 2010. Prism Rewards recognizes exceptional people in Stores, Merchandising, and Chai Chee. Leaders were briefed on each of the programs to ensure understanding and drove an enthusiastic launch which included manager and staff meetings, a new Prism Rewards communication board, and an implementation guide.

The design inspiration for the Prism Rewards is centered on the iconic shape of the pyramid. With our Platinum Services Club, Apprentice to Master Luxury Service Training, and the operating group restructuring project of last year, energy has been focused on delivering an exceptional customer service experience. The inverted pyramid is representative of our evolution to get closer to the customer, with our sales associates at the top and all others supporting their efforts. This symbol truly supports the DFS vision of

The implementation guide provides basic information on how to run each of these programs:

Programs for Stores:	Programs for all DFS Team:
Employee of the Month	Chai Chee Prism Rewards
Employee of the Year	Merchandising Prism Rewards
Best of the Best	Annual Management Awards
Chairman’s Club	Long Service Awards

Each program’s implementation guide is organized to tell you:

• WHO – Which employee groups are affected
• HOW – Explains how employees are nominated for recognition or earn rewards
• SELECTION AND RECOGNITION PROCESS – Explains the process you will utilize to nominate and award your winners.

Questions about any of the programs should be directed to askOE@dfs.com or you can contact me directly by phone or email.

To your success,