Checkpoint Systems Announces Major New Contracts With Leading Supermarket Chains in the U.s., Europe, Latin America, and Asia-Pacific.

THOROFARE, NJ--(BUSINESS WIRE)--AUGUST 26, 1998--

-- Completes Installation Roll-Out Programs, Forms New Relationships in the United States, England, Spain, Mexico, Argentina, and Australia --

Checkpoint Systems, Inc., (NYSE:CKP), a leading provider of integrated loss prevention solutions to retailers worldwide, today announced that it has been selected to install radio frequency electronic article surveillance (RF EAS) anti-theft systems by several major supermarket chains in the U.S., Europe, Latin America, and Australia. The Company also noted the completion of several system installation roll-out programs for international supermarket chains, and reported that its technology has received a landmark recommendation from two leading Argentine industry groups as the most suitable to meet the requirements of the country's supermarket and hypermarket sector.

Checkpoint's relationships with these new companies mark a dramatic step in the security provider's plans to further accelerate its international expansion program, and further solidifies its RF EAS technology as the standard for supermarket security worldwide.

UNITED STATES

Winn-Dixie Stores, Inc., the nation's third-largest supermarket retailer, recently awarded Checkpoint a contract to roll-out RF EAS systems in three of the chain's divisions which did not have EAS installed. These additional 380 store system installations make Checkpoint Winn-Dixie's exclusive chainwide provider of RF EAS technology throughout the company's 1,180 stores in the U.S. and The Bahamas. The QS 4000 system and Counterpoint(TM) patented RF non-contact scan/deactivation technology, as well as Checkpoint's Impulse source tagging, will be fully operational in the additional Winn-Dixie stores by the end of November.

Minyards Food Stores, a 45-store, Texas-based supermarket chain has selected Checkpoint to install its advanced STRATA(R) wide-aisle system and patented RF scan/deactivation chainwide. The contract also calls for the conversion of 33 Minyard's stores from a competing system to that of Checkpoint's technology.

EUROPE

Spain - Simago, one of Spain's leading supermarket chains, has signed an agreement to install Checkpoint's RF EAS systems throughout the chain's 59 stores. The agreement calls for the roll-out of Checkpoint's QS 4000 systems to be located at each store's entrance and exit, and Counterpoint(TM) patented RF non-contact scan/deactivation technology at point-of-sale. CCTV video transmission systems will also be installed.

England - Sainsbury's Supermarkets, Ltd., continues the chain wide roll-out of Checkpoint's RF EAS systems as the first step towards implementing a source tagging program.

LATIN AMERICA

Mexico - Casa Ley, S.A. de C.V., one of Mexico's leading hypermarket chains, retained Checkpoint to design and install a comprehensive loss prevention system throughout the chain's 57 stores following a six-month comparative test between it and a competing company's technology. The seven-month roll-out program, which was recently completed, installed Checkpoint's QS 2000 antennas at each store's entrance and exit, along with a patented scan/deactivation system for each of the chain's 1,500 checkouts.

Argentina - In Argentina, Checkpoint has announced the completion of two system roll-out programs. These included the installation of RF EAS systems throughout leading hypermarket chain Norte's 48 stores, and the implementation of EAS and CCTV systems for Carrefour, a 19-store hypermarket chain.

Also in Argentina, the Board of Directors of the Argentine Chamber of Supermarkets (CAS) and the Argentine Federation of Supermarkets and Self-Service Stores (FASA) recommended radio frequency (RF) technology and source tagging as the most suitable to meet the requirements of the country's supermarket/hypermarket sector.

ASIA-PACIFIC

Australia - Coles Myer Ltd., Australia's largest owner of retail chain businesses, has signed an exclusive agreement with Checkpoint to install the Company's RF EAS systems and patented non-contact integrated scan/deactivation in approximately 600 stores. The installations are slated to take place in Coles Supermarkets, Myer, Grace Bros., Kmart, BI-LO and Officeworks stores over the next three years.

"These new relationships, and the completion of the installation roll-out programs, underscores Checkpoint's continued commitment to expanding its position as the preferred provider of security solutions to the domestic and international supermarket and hypermarket industry," said Kevin P. Dowd, Checkpoint's president and chief executive officer. "Over the years we have listened carefully to what supermarket retailers have told us about their expectations from a loss prevention system standpoint, and have incorporated their requirements into our constantly evolving technology. This has enabled us to develop systems which have the greatest impact in a retail environment."

Checkpoint's EAS systems use proprietary radio frequency-based (RF) technology. When an active product tag or "target" passes through a sensor's detection field, it interrupts a radio frequency signal, triggering an alarm that alerts the retailer to a possible shoplifting attempt.

Checkpoint Systems, Inc., located in Thorofare, New Jersey, is a leading provider of integrated security solutions to retailers. More than 330,000 Checkpoint RF EAS systems are installed worldwide. Checkpoint Systems, Inc.'s website is located at www.checkpointsystems.com.

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