Alien Technology(R) Unleashes Second Wave of Gen2 RFID Chips.

New Alien([R]) Gen2 Chip Fully Compatible With Existing Gen2 Chips, but With 10X Faster Write Speeds, Extended Range and Advanced Functionality

MORGAN HILL, Calif. -- Alien Technology Corporation today announced the availability of its new Alien Gen2 UHF RFID Integrated Circuit (codenamed "Higgs"), a functional drop-in replacement for currently shipping Gen2 chips, but delivering a typical 30% longer read range and over 10 times faster write speeds than currently available Gen2 chips. Based on an innovative new underlying architecture, the EPCglobal-certified Alien Gen2 chip provides not only seamless compatibility and significantly improved performance, but also enables Alien - the world's leading supplier of Gen2 RFID tags - to quickly and cost-effectively deliver new tag products with advanced functionality optimized for new and emerging RFID applications.

"The new Alien Gen2 chip is the vanguard of the second wave of Gen2 RFID ICs, which are characterized by enhanced performance and powerful new functionality," said Keith McDonald, Sr. VP, Sales & Marketing, Alien Technology([R]). "From the end user and RFID label converter perspective, transitioning to the new chip will be a simple, low-impact change - aside from the performance improvements and new high-speed programming capabilities, the new chip offers a seamless transition for existing implementations. In the future, Alien will be able to easily offer multiple new tag products for new applications with differing attributes, all without a fundamental change to our design and production and what is already the industry's lowest cost base."

Manufactured using Alien's patented, high-volume, low-cost FSA([R]) process, the Alien Gen2 chip will be the foundation for Alien UHF RFID tags. This includes the popular Alien Gen2 Squiggle([R]) tag, the newly announced additions to Alien's World Tag family, and Alien's newly announced small form factor tags.

Compatibility

Following its EPCglobal certification in June 2006, the Alien Gen2 chip has been the subject of an aggressive interoperability program involving RFID reader, printer and applicator vendors to ensure its compatibility with RFID tags. At the same time, leading RFID label converters have been engaged in an early-sample and validation program to help ensure a seamless switchover. To date, six of the largest label converters have signed multi-year strategic agreements for the purchase of up to 840 million Alien RFID tags, including tags containing the Alien Gen2 RFID chip.

Breakthrough Performance

The Alien Gen2 chip demonstrates performance of over 2 db more sensitivity than previously available passive UHF RFID ICs, which translates to an average 30% range advantage depending on the application. With this increased sensitivity comes more reliable tag performance and the ability for tags to work more effectively on different types and sizes of products. It also means that tags can be designed to use smaller, less expensive antennas, to help further reduce their costs and label sizes.

Equally significant, the Alien Gen2 chip supports programming, or write, speeds that are up to ten times faster than currently available Gen2 ICs, which translates to increased throughput for label printers and applicators and on assembly lines. The new IC's memory, including EPC, lock, kill and access codes, can be loaded in a single command cycle, compared to the 10 or more cycles required by currently available ICs. Hence 10 times more tags can be programmed per second, enabling higher speed manufacturing integration and labeling.

Configurable Flexibility

Among the innovative features of the Alien Gen2 chip is its flexible, factory-configurable memory architecture, which in the future, will enable Alien to rapidly deliver new low-cost tag products optimized for a range of new applications during the manufacturing of the tag. The basic, or default, configuration contains the standard 96 bit ePC memory and features Kill and Access passwords. Depending on application needs, additional configurations can include extended ePC memory (128 bits), 64 bits of independently lockable user memory, and unique Tag IDs (locked factory-programmable serial numbers) for anti-counterfeiting applications.

Availability

The Alien Gen2 IC is in production now and will be available in high volume in November 2006.

About Alien Technology

Alien Technology provides UHF Radio Frequency Identification (RFID) products and services to customers in retail, consumer goods, manufacturing, defense, transportation and logistics, pharmaceuticals and other industries. Organizations use Alien's RFID products and services to improve the effectiveness, efficiency and security of their supply chains, logistics and asset tracking operations. Alien's products include RFID tags, RFID readers and related training and professional services. Alien's patented Fluidic Self Assembly (FSA) technology and related proprietary manufacturing processes are designed to enable the manufacture of high volume, low cost RFID tags.

Alien was founded in l994. The company's facilities include: its corporate headquarters in Morgan Hill, CA; an RFID tag manufacturing facility in Fargo, ND; the Alien RFID Solutions Center, in the Dayton, Ohio area, and sales offices in the US, Europe and Asia. Alien is a member of EPCGlobal. More information about Alien is available at www.alientechnology.com.

Alien, Alien Technology, the Alien logo, Squiggle, and FSA, are trademarks or registered trademarks of Alien Technology Corporation in the United States and other countries.

Copyright 2006 Alien Technology Corporation. All rights reserved.