Ace Hardware Recommends Sensormatic EAS Technology and Commits to Source Tagging.

BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 14, 1997--Ace Hardware, one of the largest hardware chains in the world, today announced its recommendation of Sensormatic Electronics Corporation's (NYSE:SRM) UltraMax(r) electronic article surveillance (EAS) technology. The retailer also stated its intention to pursue source tagging, the process of inserting electronic labels in consumer goods during manufacturing or packaging in order to prevent shoplifting.

Ace Hardware operates 5,100 independently owned stores and 10 corporate-owned stores across the United States and in 60 other countries. The company's EAS recommendation is based on the successful programs utilizing UltraMax which are in place at a number of Ace Hardware's retail stores.

"Sensormatic's UltraMax is the only system that provides the wide exit coverage we require and is able to effectively protect the broad range of products in our stores, including many items containing metal," said Ken Boyd, manager of Loss Prevention Services, Inc., a wholly owned subsidiary and loss prevention consulting company at Ace Hardware. "Furthermore, with successful programs already in place in our industry, we can immediately begin to stock source tagged products at our distribution centers and provide them to our retailers."

UltraMax is the technology of choice in 99 percent of U.S. hardware stores and home centers equipped with EAS, including The Home Depot, McCoy's Building Supplies, Orchard Supply Hardware and Sears Hardware. By recommending UltraMax, Ace Hardware will capitalize on the tremendous progress which has been made in the retail hardware segment in the areas of EAS and source tagging.

This announcement complements a recent commitment from Sears, Roebuck and Co. to install Sensormatic's UltraMax EAS technology in all Sears Hardware stores and selected full-line stores.

"This partnership with Ace Hardware reinforces the fact that UltraMax is the de facto standard for EAS and source tagging in the hardware segment," said Joe Ryan, Sensormatic's vice president of Global Source Tagging. "Sensormatic continues to outpace the industry by constantly adding new chains from all retail sectors to our source tagging program and new manufacturers to our list of source tagging partners."

The hardware sector is one of the most advanced in terms of source tagging, with more than 5,000 SKUs (stockkeeping units) currently being tagged with UltraMax by 200 manufacturers. Source tagging has allowed hardware chains to openly merchandise high-theft items which were previously locked in cages or behind glass. Open merchandising significantly increases sales in many product categories and provides improved customer service by making products easily accessible.

Sensormatic Electronics Corporation, the Official Electronic Security Supplier for the 1996 Olympic Games, is a leading supplier of electronic security systems to the retail, commercial and industrial marketplaces. Sensormatic is also a leader in integrated source tagging, a process where consumer goods manufacturers insert anti-theft tags at the point of packaging or manufacturing.

For more information on Sensormatic, visit its home page on the World Wide Web at http://www.sensormatic.com . -0-

NOTE TO EDITORS: In the World Wide Web address noted in this news release, there is a double slash between http: and www.sensormatic.com. These symbols may not appear properly in some systems.

CONTACT: Ace Hardware

Ken Boyd, 630/990-6400

or

Sensormatic Electronics Corporation

Lee Pernice, Mgr. of Communications

561/989-7361