Australia's Leading Retailers Turn to Source Tagging to Increase Sales and Reduce Theft.

SYDNEY, Australia--(BUSINESS WIRE)--July 14, 1999--

-- Two Retail Chains, Spotlight and Katmandu, Announce UltraMax(R)

Source Tagging Programs, as More Than 90 Retailers Gather for the

First Australian Source Tagging Council Meeting --

Two of Australia's leading specialty retail chains -- Melbourne-based retailers Spotlight and Katmandu -- have announced plans to implement source tagging programs, a further indication that the anti-theft initiative is making its mark on Australia's retailers.

Source tagging is the process of placing small anti-theft tags inside a product or a product's packaging by the manufacturer.

Spotlight, Australia's largest fabric, craft and home interiors superstore, will begin installing UltraMax(R) anti-theft systems from Sensormatic Electronics Corporation (NYSE:SRM) in all 80 of its stores located throughout Australia, New Zealand and Singapore. Katmandu, an outerwear gear and apparel retailer, will also install UltraMax systems in 20 of its locations. Both retailers expect to receive source tagged products by the end of this year.

These recent announcements by Spotlight and Katmandu are the latest in a string of successes for source tagging, which has been the focus of increased interest among Australian retailers over the past two years. In fact, more than 80 of the country's top retailers, suppliers and manufacturers recently gathered in Sydney for the first-ever Australian Source Tagging Council meeting. Hosted by sporting goods retailer Rebel Sport, the meeting's attendees included David Jones Department Stores, Bunnings Building Supplies Party Ltd., Franklins Limited and The Warehouse who shared their successes and challenges of implementing source tagging programs.

"Source tagging has gone a long way in helping us decrease our theft and has provided additional merchandising and operational benefits," said Ron Robinson, loss prevention manager for Rebel Sport, one of the country's first retailers to institute a source tagging program. "One of the biggest challenges we face as retailers is decreasing the amount of time it takes for merchandise to reach the sales floor. Source tagging helps us solve that problem by allowing us to receive merchandise already tagged and ready for sale."

Joe Ryan, corporate vice president of Global Source Tagging for Sensormatic Electronics Corporation and one of the meeting's attendees, said this retail trend toward source tagging is based on its proven ability to increase sales and customer service while also decreasing theft.

"Source tagging benefits retailers, manufacturers and consumers," Ryan said. "Source tagging allows high theft merchandise to be removed from behind the counter while still providing protection from thieves. In addition, customers receive the added benefit of better service and ease of shopping."

Ryan added, "The recent announcements by Spotlight and Katmandu, the successful programs already in place by retailers such as Rebel Sport and the success of the Australian Source Tagging Council prove that source tagging is here to stay."

Retailers worldwide have turned to source tagging to protect merchandise. More than 2,100 consumer goods manufacturers have tagged their products with Sensormatic's EAS labels, and more than 127 retailers participate in source tagging programs worldwide.

The Source Tagging Council was established to provide a forum for retailers interested or actively involved in source tagging. The Council will meet several times each year to share source tagging strategies, experiences and best practices and promote the merchandising, operational and loss prevention benefits of source tagging.

Sensormatic is the leading supplier of electronic security systems to the retail, commercial and industrial marketplaces. Sensormatic is also the leader in integrated source tagging -- a process where consumer goods manufacturers apply anti-theft tags at the point of packaging or manufacturing.

For more information on source tagging, visit the Source Tagging Council's web site at www.synergy-stc.com. For more information on Sensormatic, please visit the company's web site at www.sensormatic.com.