Checkpoint Systems Announces New Electronic Signatures Technology Solutions for Supply Chain Logistics.

Business Editors/Hi Tech Writers

THOROFARE, N.J.--(BUSINESS WIRE)--April 19, 2001

Forms Development/Distribution Alliance With Westvaco Corporation

RFID Tags at Less Than 10(cent) - An Industry First

Checkpoint Systems, Inc. (NYSE: CKP), a leading provider of supply chain management and security solutions worldwide, has announced an innovative new generation of low-cost radio frequency (RF) technologies.

Branded as Electronic Signatures(R), the new technologies will resolve the supply chain challenges of electronic article surveillance (EAS) source tagging, as well as provide radio frequency identification (RFID) capabilities. As an industry first, ultra-low cost RFID technology tags are planned for pricing in volume at under 10(cent) per tag.

Westvaco Development and Distribution Alliance

These new patented technologies will be provided to Westvaco, refined for their markets, and distributed in this groundbreaking alliance between Checkpoint and Westvaco Corporation, a leading producer of packaging, paper and specialty chemicals. Over time, other Electronic Signatures(R) Alliance partners will be established in order to build expanded distribution channels to rapidly deploy these new technologies globally at low costs to make them pervasive through the supply chain.

"This alliance involves two global leaders in symbiotic businesses - packaging and supply chain management technology," said Richard H. Block, Sr. Vice President at Westvaco Corporation and President of its Consumer Packaging Group. "The cost efficiencies of these new technologies is a win for everyone in the supply chain, from manufacturers to end-users. Because of the low-cost of the technologies, we will be able to dramatically increase the SKU's that are source-tagged and tracked."

The new technologies are expected to significantly enhance the value of RF EAS systems and offer new growth opportunities. Beyond this, the Checkpoint-Westvaco Electronic Signatures(R) Alliance will drive down costs of the technologies through innovative production methods. For the first time RFID capability will be offered for less than $0.10 per tag. Worldwide distribution within the packaging industry will also be facilitated through the alliance.

New Technology Platforms

Electronic Signatures(R) Technologies include three distinct, high-value tag platforms: 1) Gen(3)(TM) - triple state; off-on-off activatable RF EAS tags for source tagging 2) ExpressTrak(TM) chipless RFID tags; ultra-low cost read-only intelligent tags 3) Performa(R) RFID tags with an integrated chip (IC) on board

Gen(3)(TM) Tags

Advanced triple state Gen(3)(TM) RF EAS tags may be applied while in the "off" position into merchandise during the manufacturing or packaging process. Later as required, regardless of the distribution pattern, the tag can be turned on while in bulk packaging with an RF signal. Tags hidden in merchandise can be turned on while still in bulk packaging traveling on conveyors at 400 feet per minute. With this new technology, source tagging is made available to even the smallest retailers. Tags can also be turned-on by paddle activators when received at the store or while they are on shelves in the store. This technology allows manufacturers to apply tags to any merchandise without concern of false alarms from non-EAS retailers selling "live" EAS tagged merchandise, that may result in an alarm from the tagged merchandise entering into an EAS protected store. Gen(3)(TM) tags can be turned-on at high speeds in boxes as large as nine square feet regardless of the tag orientation (unlike competitive tags that can only be turned live in small boxes, at significantly slower process rates, and require tags to be in a specific orientation).

ExpressTrak(TM) Chipless Intelligent Tags

A new breed of ultra low cost RF intelligent tags have been developed with the potential of millions of identities for identification, authentication and security in the supply chain. There is no IC required for operation. These new RFID tags achieve individual identities based on unique, proprietary tag geometry and manufacturing processes. This revolutionary technology provides RFID capability priced under $0.10 cents in volumes. ExpressTrak(TM) tags will provide a high volume evolutionary path bridging to chip based RFID tags.

Performa(R) RFID Tags with IC

Checkpoint's family of RFID tags with an IC represent the highest level of intelligence in the Electronic Signatures(R) series. Having the IC enables the capability to both read and write important data to the tag and retrieve that data throughout the products life cycle. This technology provides for significant data storage on the tag, enabling applications where there is a need to be able to add, modify or delete data dynamically as the products move through the supply chain. Now, from the manufacturer through the retail customer, product information such as date of manufacture, logistics information, distribution and customer information for warranty can be kept with the product. Performa(R) RFID tags are also capable of nesting with ExpressTrak(TM) tags to combine the best features of both technologies.

"By combining the best elements of our RF technologies, the new Electronic Signatures(R) platform will set the pace for EAS and RFID for years to come," said Michael Smith, President and CEO of Checkpoint Systems. "We're resolving source tagging distribution challenges with new multiple-state EAS tags that can easily be turned on at any point in the supply chain, which enables manufacturers to offer the benefits of source tagging protection to any customer who wants it. RF technology will expand extensively as large volumes of highly integrated packages, tags and labels are delivered to the marketplace. The result will be an environment where items of value moving through the supply chain will likely include a Checkpoint circuit."

The Electronic Signatures(R) product family demonstrates the superior value of RF technology and its benefits to the supply chain, including source tagging and identification. These technologies can be integrated with Checkpoint's labeling solutions for highly integrated full color branding and identification tags and labels for hard goods and soft goods retailers and manufacturers.

Westvaco (www.westvaco.com) is a leading manufacturer of packaging, paper and specialty chemicals with operations in eight countries and customers in more than 70 nations. The company serves global media, healthcare, cosmetic, personal care and other growing consumer markets. It produces paperboards, folding cartons made from paperboard, plastic and combinations of those materials and injection-molded plastic cases. State-of-the-art printing and graphic design capabilities further enhance Westvaco's presence in global packaging markets.

Checkpoint Systems, Inc. is a multinational company that manufactures and markets labeling systems designed to improve efficiency, reduce costs and provide value-added label solutions for customers across many markets and industries. Checkpoint is a leading provider of digital RF EAS and RFID systems, RF source tagging, barcode labeling systems, hand-held labeling systems and retail merchandising systems. Applications include automatic identification, retail security, and pricing and promotional labels. Checkpoint has a global network of 30 subsidiaries and provides professional customer service and technical support around the world. Checkpoint Systems, Inc.'s web site is located at www.checkpointsystems.com.