Alien Technology Selects Fargo, North Dakota for Manufacturing Site.

Business Editors/High-Tech Writers

MORGAN HILL, Calif.--(BUSINESS WIRE)--July 11, 2003

Alien Technology announced today that it has selected the North Dakota State University Research and Technology Park in as the site for the planned expansion of its manufacturing operations. North Dakota was selected over several alternative sites based on Alien's successful joint development technology programs with the Center for Nanoscale Science and Engineering (CNSE) at NDSU, the state's capable and stable workforce, and North Dakota's business-friendly economic development environment.

"We have been delighted with the relationships we have developed in North Dakota. The program with NDSU was initiated with funding sponsored by Senator Byron Dorgan. NDSU has proven to be a great resource for us," said Stav Prodromou, CEO of Alien. "Proactive leadership from Senator Dorgan and Governor John Hoeven was instrumental in moving North Dakota to the top of our list. Their support, and similarly strong support from NDSU President Joe Chapman and State Senator Tony Grindberg led to the selection of a site at The Research and Technology Park at NDSU. We look forward to building on the foundation that we have established over the past two years with NDSU to establish an advanced manufacturing technology center."

Alien Technology is a leading producer of Radio Frequency Identification (RFID) products. RFID is useful in a variety of applications including logistics operations, national security, and anti-counterfeiting. Wal*Mart has announced that it has chosen RFID to help it manage and track products as they are shipped to their stores, and many others are expected to follow their lead.

Alien has a unique advanced manufacturing method that allows it to make RFID labels in very high volumes and at very low cost. Alien plans to install equipment capable of manufacturing billions of these labels per year in the North Dakota plant.

A formal announcement and further details about Alien's Fargo-based manufacturing technology center will be made at the conclusion of a detailed planning phase that is in progress.

About Alien Technology

Alien Technology has developed, and holds exclusive patent rights to, a manufacturing technology that will dramatically reduce the manufacturing cost of many kinds of important electronic products. Fluidic Self-Assembly permits the high-speed assembly of tiny integrated circuits, called NanoBlock(TM) ICs, into rolls of plastic film. Savings are driven by both lower silicon costs and the efficiency inherent in the massively parallel assembly process.

Alien is privately held. Significant investors include Rho Management, Sevin-Rosen Funds, New Enterprise Associates, Adams Street Partners, Avery Dennison, and UPM-Kymmene. More information can be found on the Company's Web site at www.alientechnology.com.