'Smart Box' RFID Technology Urged by U.S. Customs for Security Also Provides Economic Value for Global Shippers -- A.T. Kearney.

SUNNYVALE, Calif. -- New Research Finds Major Importers and Exporters Recognize Substantial Operational Savings Via Networked RFID Going Beyond Simple Tamper Alerts

'Smart Box' container technology recently promoted by U.S. Customs and Border Protection (CBP) for special "green lane" clearance under the C-TPAT program also can deliver sizable investment returns for shippers when linked to a proven global asset management and security network, according to new research by A.T. Kearney, one of the world's largest management consulting firms.

Robert Bonner, CBP Commissioner, announced during the recent Customs Trade Symposium in Washington, D.C., that he was ready to take the Customs-Trade Partnership Against Terrorism (C-TPAT) program to the next level, which he called "C-TPAT Plus". C-TPAT Plus would provide "no inspection upon arrival -- immediate release" for low-risk shippers using technology that can detect and record whether tampering has occurred with a container seal after being affixed at the point of origin.

"U.S. Customs and Border Protection should be commended for its forward-looking recognition of 'Smart Box' technology in helping to further strengthen Homeland Security while also providing economic value for its users," said Omar Hijazi, an A.T. Kearney principal who oversaw the report, which was conducted for client Savi Technology.

"Our study validated that logistics executives for major importers and exporters believe that a tracking and security solution using Radio Frequency Identification (RFID) technologies linked to a networked platform that goes beyond simple tamper alerts can provide significant value," said Hijazi. "Based on a number of potential benefits, we calculated that users could realize net benefits averaging $1,200 per container shipment. This would be added on top of benefits received through fast-track Green Lane qualification, and could create major productivity gains that outweigh the costs of implementation."

From extensive interviews with logistics executives at 25 of the world's largest importers and exporters (Retail/Consumer Products Goods, Chemicals, Automotive and High Tech industries), the A.T. Kearney study found that container security and inventory management are among the most important issues facing the over-ocean supply chain. Specifically, the A.T. Kearney study on synchronous and secure supply chain for global container shipments found that logistics executives believed smart box RFID technology going beyond simple "automated tampering alerts" can improve container security while also:

--Reducing Inventory

--Reducing Out-of-Stocks

--Reducing Lead-Time Variance

--Increasing Manufacturing Uptime

--Reducing Administrative Costs and Fees

--Preventing Theft

--Preventing Lost Containers

"It's very clear now that economic security and physical security are inter-linked in the supply chain, and that RFID technologies networked on a software platform is the key driver," said Mark Weidick, General Manger of Savi's Collaborative Network Services group. "With new incentives from Customs for shippers to achieve green lane status through 'Smart Boxes,' combined with analyses on investment returns of these proven technologies, our customers are gaining distinct competitive advantages. Our solutions, which have been literally battle-tested in over a million containers moves, are modular and extensible from the most simple 'sense and respond' tamper evident alert to a more networked supply chain management and execution solution that provides greater ROI for shippers."

Weidick added that the A.T. Kearney study reinforces findings from several other recent reports. For example, last year BearingPoint, Inc. (NYSE:BE), one of the world's largest business consulting and systems integration firms, on behalf of the U.S. Trade and Development Agency, analyzed results of a demonstration project between the Ports of Bangkok and Seattle of container shipments using RFID sensor tags provided by Savi Technology. BearingPoint found that hundreds of dollars worth of net savings could be realized with the RFID solution by reducing Customs compliance costs, improving timely deliveries and customer service, and reducing stock-outs and theft. Further, a Stanford University study found that RFID solutions provided by Savi Technology and deployed in the Smart and Secure Tradelanes industry-driven solution found similar benefits to shippers ranging from $400 to $1,800 per container trip.

For nearly a decade, Savi Technology has been the leading provider of networked RFID supply chain solutions for government and commercial organizations, having helped implement more than 1,500 nodal installations for the U.S. Department of Defense's In-Transit Visibility (ITV) network, through which more than one million RFID-tagged containers have been tracked and managed, and for DoD's NATO allies. In addition, Savi's networked 'Smart Box' sensor security technologies have been successfully deployed in over 2,000 container shipments through global ports the past couple years in projects with the U.S. Department of Homeland Security's Operation Safe Commerce, U.S. Trade and Development Agency, and Smart and Secure Tradelanes, the global industry initiative.

A number of other recent government and industry policies have provided incentives to use RFID-related solutions. Last year, Wal-Mart, Target, the DoD, Federal Drug Administration and others issued policies requiring suppliers to use RFID to improve the visibility and authenticity of supply chain shipments.

About Savi Technology

With over 15 years of global logistics infrastructure experience, Savi is the proven leader in real-time supply chain asset management and security. The company's broad customer service base includes the U.S. Department of Defense, the United Kingdom Ministry of Defence, major shippers, manufacturers, and retailers, as well as numerous international ports, terminal operators, carriers, asset owners and third party logistics providers. Founded in 1989, Savi Technology is privately held, with headquarters in Sunnyvale, Calif., and offices in Washington D.C., London, Milan, Hong Kong, Taiwan, Singapore and South Africa. For additional information, visit Savi on the web at www.savi.com.

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