CANADIAN TIRE CORP. LTD. and the CANADIAN TIRE DEALERS ASSOCIATION CHOOSE CHECKPOINT SYSTEMS, INC. FOR ELECTRONIC ARTICLE SURVEILLANCE SOURCE TAGGING.

THOROFARE, N.J.--(BUSINESS WIRE)--June 5, 1995--Canadian Tire Corp. Ltd. (TSE: CTR), in concert with the Canadian Tire Dealers Association (CTDA), has selected Checkpoint Systems, Inc.'s (NYSE: CKP) radio frequency (RF) technology for electronic article surveillance (EAS) source tagging, a process which embeds security labels into products or packaging at the manufacturing level. A Toronto-based retailer, Canadian Tire Corp. operates 423 stores throughout Canada.

In making the announcement, Terry Connoy, executive director of the Canadian Tire Dealers Association, said, "A committee of dealers and Canadian Tire chose Checkpoint because the label is less expensive, easier to apply, and RF technology appears to have more future potential."

The Association researched EAS source tagging for more than two years before deciding on RF technology. As part of the research, in-store tests were conducted with both acousto-magnetic and RF technology, meetings were held with consumer product manufacturers, and visits were made to EAS manufacturers' facilities.

Radio frequency-based EAS systems consist of paper-thin RF labels affixed to merchandise, deactivation equipment at checkout to turn labels off without finding or touching them, and detection sensors at entrances and exits to deter and detect shoplifters. "Non-contact deactivation is faster for cashier productivity and makes source tagging possible because labels don't have to be located for deactivation to take place," added Mr. Connoy.

According to Wayne Sales, senior vice president of marketing for Canadian Tire, the company will aggressively pursue source tagging with its vendors. "We are going to designate an individual whose mission it will be to develop source tagging relationships with our vendors. Our intention is to increase profits by reducing shrinkage and to encourage impulse purchasing."

Canadian Tire also plans to participate in an international RF Users Group which was formed by leading retailers to promote source tagging with RF technology. "Retailers and manufacturers need to understand the magnitude of the profits walking out the door with shoplifters. The RF Users Group will help promote a collective understanding and agreement on source tagging," said Mr. Sales.

More than 120,000 Checkpoint systems are installed worldwide. Leading retailers such as Rite Aid Drug Stores, Target Stores, Thrift Drug, Venture Stores and Walgreen Co. are installing the systems chainwide to facilitate source tagging. "Canadian Tire's choice of RF technology reflects a growing international trend toward RF EAS for vendor source tagging. We look forward to working with Canadian Tire and its vendors to implement source tagging in Canada," said Kevin Dowd, president and chief executive officer of Checkpoint.

Checkpoint Systems Inc. is a leading provider of integrated security solutions for retailers worldwide.

Canadian Tire is Canada's largest hardgoods retailer specializing in automotive, sports and leisure, and home products. There are 423 Canadian Tire Associate stores serving communities nationwide. The Canadian owned company has a 72 year franchise with Canadians. Canadian Tire's other businesses include the Petroleum Division which has 202 gasoline outlets and is the largest independent retailer of gasoline in Canada, and Canadian Tire Acceptance Ltd., a financial services company. Between 1994 and 1998, Canadian Tire will have invested in 240 newly formed store projects, increasing retail selling space.

CONTACT: Checkpoint Systems, Inc.

Stephen Brown, 800/257-5540 x2408

or

Checkpoint Canada

Morag Harmsen, 905/837-2121