Checkpoint Systems Announces New RFID Go-to-Market Strategy and Key Industry Initiatives.

Company to focus on core Retail customers

THOROFARE, N.J. -- Checkpoint Systems, Inc. (NYSE: CKP), a leading manufacturer and marketer of RF- and RFID-based solutions for identification, tracking, security and merchandising applications, today announced its new RFID go-to-market strategy and key industry initiatives. Leveraging its global infrastructure and core competencies, the company will focus its efforts on satisfying the evolving RF and RFID needs of its core retail customers as well as supporting its existing library business.

Reorganization to support requirements of its global customers

Traditionally, Checkpoint has managed its lines of business on a region-by-region basis. However, the competitive environment has changed, with customers now demanding solutions that they can roll-out and manage world-wide. In response, Checkpoint has reorganized its business operations and integrated RFID solutions into its existing Shrink Management & Merchandising and Intelligent Labeling Solutions global business groups.

This focused business model now enables the company to better meet the evolving needs of its customers in Asia, Europe and North America; providing them with a global sales and support infrastructure in addition to the development of a more complete and expanded portfolio of complementary RF and RFID products and services.

Narrowing focus to add value to customer relationships

Over the past 18 months, CheckpointeIUs specialist RFID team has engaged in a wide scope of customer and partner discussions that have identified new technical product innovations and solutions covering both retail applications and eIneweIU vertical markets, such as transit ticketing and pharmaceuticals.

eIuThe numerous opportunities identified are exciting, but also challenging in the total scope of resources that are required to develop them into commercial success,eIN said George Off, Checkpoint CEO. eIuConsequently, we have decided to focus on our core Retail customers, supporting our existing library business and discontinuing non-core market verticals.eIN

eIuAs a result of the reorganization, certain operating positions have been absorbed within CheckpointeIUs core business groups,eIN Off continued. eIuHowever, as we move forward, I believe that we are now better organized, more focused and better motivated than ever. We are fully committed to engage, learn, invest and lead on a number of projects where we believe we can really add value and be of true help for our customer base.eIN

Key industry initiatives

One of CheckpointeIUs recent successes has been the demonstration of its capabilities in designing, sourcing, integrating, installing and servicing UHF Dock Door Portals. The challenges associated with this project has strong similarities with emerging applications for CheckpointeIUs core EAS business, and it is a good example of the company leveraging its core strengths and expanding its current product and service offerings.

Checkpoint has also developed several new types of HF and UHF labels and is selling them into retail, apparel and CPG applications such as the Lemmi Fashion apparel example, which currently uses the HF solution. Additionally, Checkpoint will continue to step up its engagement in a number of retail customer projects as it relates to item level identification including security, cashier collusion and inventory control.

The company will expand the development of its strategic Data and Logistics platform operating under the CheckNetE1/2 brand. Starting in Europe, Checkpoint will be bringing RF source-tagging of both hard and soft-goods under the CheckNet umbrella.

The company believes CheckNet will become an important RFID enabler for many of its core customers.

About Checkpoint Systems Inc.

Founded in 1969, Checkpoint Systems, Inc. is a leading manufacturer and marketer of RF- and RFID-based solutions for identification, tracking, security and merchandising applications. With a presence in more than 80 countries and a network of more than 25 service bureaus worldwide, the company is the global leader for scalable, sure-performing 8.2 MHz, UHF, HF, EPC and ISO-based EAS and RFID labeling products, systems, maintenance and support services.

For additional information, visit Checkpoint SystemseIU web site located at www.checkpointsystems.com.

Note to the editor:

If you are interested in arranging a personal interview with Checkpoint CEO, George Off, please contact Bob Basmadjian of Spectrum Marketing & Communications at (908) 823 eI 9400 or via e-mail at [e-mail]