Alien Technology(R) Announces Alliance With Microsoft on RFID Initiatives; Microsoft Showcases New RFID Infrastructure Using Alien RFID Readers and Tags at TechEd Europe 2005.

MORGAN HILL, Calif. -- Alien Technology today announced an alliance with Microsoft that establishes Alien(R) as one of the key partners in Microsoft's RFID Initiatives whereby Alien RFID reader and tag products will be supported by Microsoft's RFID technology. Alien also announced that Microsoft selected Alien tags and European-compliant high powered ALR-8780 readers as one of the readers to demonstrate its RFID technology at the Microsoft TechEd EMEA conference this week in Amsterdam.

Designed for demanding supply chain applications, the Alien ALR-8780 reader was the first EPC RFID reader certified to the stringent new European specification (ETSI EN 302-208) for higher power readers. As with all Alien readers, the ALR-8780 is compatible with the Microsoft RFID Infrastructure, which is designed to enable cost-effective deployment of RFID capabilities and simplified management of RFID data across the enterprise -- including the seamless integration of RFID data with enterprise business applications and real-time processes. The RFID Infrastructure based upon the Microsoft .NET framework will include an advanced device management layer and a robust event management layer that can be embedded in third party applications. "Our RFID effort would not be successful without the support of leading device providers like Alien," said Ted Kummert, Corporate Vice President at Microsoft Corp. "We are proud of our relationship with Alien and of the company's support of our RFID vision."

"The Microsoft RFID Infrastructure, with its 'plug-and-play' functionality and open APIs, will play a key role in the integration of RFID with mainstream business applications and in the leveraging of RFID data for real-time visibility and decision making," said Andrew Berger, Vice President, International, Alien Technology Corporation. "As one of the key partners of Microsoft and a member of the Microsoft RFID Partner Council, Alien is committed to working closely with Microsoft in extending the value and reach of RFID technology around the world."

About Alien Technology

Alien Technology Corporation is a leading provider of Radio Frequency Identification (RFID) products for global customers in government, retail, manufacturing, pharmaceuticals, transportation, and other industries. Using its patented manufacturing process, Fluidic Self Assembly (FSA(R)), Alien manufactures EPC tags in very high-volumes and at low cost. The company provides a family of RFID readers for a variety of applications including supply chain management, logistics, and anti-counterfeiting, to improve inventory management and reduce operating costs. Alien is an active member of EPCglobal. More information about Alien Technology Corporation can be found on the Company's website at www.alientechnology.com.

Alien, Alien Technology, the Alien logo and FSA, are trademarks or registered trademarks of Alien Technology Corporation in the United States and other countries. Other product or service names mentioned herein are the trademarks of their respective owners.

Copyright 2005 Alien Technology Corporation. All rights reserved.