Checkpoint Systems Plays Key Role in Metro Group RFID Roll-Out and at Innovation Center.

THOROFARE, N.J. -- Checkpoint Systems, Inc. (NYSE: CKP), the leading provider of RF-based product identification and shrink management solutions for retailers and consumer package goods manufacturers has been selected by The METRO Group, the world's fourth-largest retailer, and the first to deploy RFID technology across the entire supply chain, to form part of an RFID solutions team that will help suppliers implement the technology in their daily operations.

Within the scope of the solutions team, Checkpoint has been chosen as the recommended partner for systems integration services, along with IBM. In addition Checkpoint is also recommended as a supplier of RFID labels and antennas.

METRO Group announced earlier this year their intention to begin a roll out of the technology from November 2004, initially working with 20 suppliers to the group. This will gradually be extended to 100 suppliers, eight central warehouses and 269 different locations of METRO Cash & Carry, Real and Kaufhof in Germany.

The use of RFID in the supply chain operations of the retailer will ensure better traceability and food safety in addition to improved inventory management leading to better stocked shelves, thus improving the customer in-store experience.

Checkpoint has also been working very closely with METRO Group in the retailer's RFID Innovation Center which opened last week in Neuss, Germany. Checkpoint provided many of the applications that will help suppliers, sales divisions and suppliers of the METRO Group familiarize themselves with Radio Frequency Technology (RFID).

The Innovation Center, which covers a floorspace of 1,300(m2), is an important testing laboratory for all participants of the rollout. METRO Group's partners can gather their own experiences by testing the technology under virtual conditions, focusing on practical applications at all points in the supply chain.

Checkpoint's technology is featured throughout the Innovation Center. The company has provided a number of source-to-shelf RFID solutions that allow Center visitors to interact with RFID technology and attain a better understanding of the benefits it can bring to their business. Checkpoint's supply chain technology includes a warehouse solution, a smart dock that accurately reads UHF labels on cases, verifying quantities are and allowing a real time knowledge of inventory levels.

The department store solutions include smart rails and shelves, dual frequency hard tags and integrated RFID swing labels, a Smart Merchandising and Information point, a Smart Point Of Sale (POS) and Checkpoint's dual frequency EAS/RFID Gemini antennas, the latter of which are already in use in the METRO Group Future Store in Rheinberg, Germany.

The technology may be used by fashion retailers and shoppers alike, informing them which sizes and colors are in stock simply by scanning the tag. A screen displays all the information about the particular garment without the need to wait until a store assistant becomes available. In addition, the Smart Merchandising screen located at the changing room can advise shoppers on complementary items to go with the items they are trying on which may lead to greater sales opportunities.

Checkpoint's dual frequency RFID/EAS hard tags can be attached either at source or in a distribution center. In addition to providing a reusable and therefore cost effective tag, the tags elimniate shrinkage at point of sale because they cannot be detached from the item unless the sale has been entered into the cash register.

Dr. Gerd Wolfram, Executive Project Manager said, "Checkpoint has a wealth of experience with RF-EAS technology in applying labels at source which are read at the point of sale; the RFID business is very similar. Checkpoint can leverage this experience to be used in the supply chain, putting the tags on crates and pallets. I am very appreciative that Checkpoint is part of the METRO Group Future Store Initiative and will also be working with our top suppliers."

Albert Roger, Vice President and General Manager RFID Solutions at Checkpoint Europe said of Checkpoint's participation in the Innovation Center, "We are very pleased to be playing a major role in the first deployment of RFID in the retail supply chain and being part of the METRO Group RFID Innovation Center. By visiting and using the Innovation Center, suppliers and retailers will be able to more clearly understand the particular benefits this new technology will bring to their operations and their customers. It's a win-win for all involved."

More information about the METRO Group RFID Innovation Center can be found at: www.innovation-center.metrogroup.de

About Checkpoint Systems, Inc.

Checkpoint Systems, Inc. is an international company that specializes in product identification and shrink management solutions for the retail industry and its supply chain. Checkpoint's solutions provide its customers greater efficiencies from the point of manufacture to the point of sale and improve the consumer shopping experience.

Listed on the NYSE, the company employs more than 4,000 personnel worldwide, has direct sales in 30 countries, and has distributors in 50 countries. Checkpoint is the world's leading provider of RF (Radio Frequency) technology, producing billions of RF tags and manufacturing and installing tens of thousands of RF antennas.annually. The company's extensive product portfolio includes digital RF/EAS (Electronic Article Surveillance) and RFID (Radio Frequency Identification) systems, RF source tagging, barcode and labelling systems, including a global network of 30 service bureaus, and solutions for retail merchandising.

Checkpoint's European Website is located at www.checkpointeurope.com. The US site can be reached at www.checkpointsystems.com.

About the Metro Group

The METRO Group is the world's fourth-largest retailing group. With its powerful brands, the METRO Group operates successfully in 28 different countries around the world - at some 2,300 locations and with more than 240,000 employees. In 2003, the company achieved net sales of EUR 53.6 billion.