Checkpoint Systems Selected by Spain's Leading Supermarket Chain for RF EAS Rollout, Chainwide; 428 Supermarkets To Be Protected With New Digital RF.

Business Editors

THOROFARE, N.J.--(BUSINESS WIRE)--Aug. 2, 2000

Checkpoint Systems, Inc. (NYSE:CKP), a leading provider of supply chain management and security solutions worldwide announced that it has been selected by Mercadona, Spain's leading supermarket chain, to install radio frequency electronic article surveillance systems (RF EAS) chainwide. Mercadona reported 1999 revenues of $2.8 billion and expects to grow its current 428 stores to 500 by the end of the year. Checkpoint is the dominant player in supermarket EAS installations in Spain with an overwhelming 83% of the installed base.

"After a year of intensive testing and analysis, Mercadona found our RF EAS system to be more efficient and reliable than competing technologies," said Per Levin, Regional Director of Checkpoint Systems in Southern Europe. "Our technology will allow Mercadona to increase sales by open merchandising of expensive liquor, cosmetics and perfumery, while at the same time controlling theft."

Checkpoint's RF EAS systems use proprietary digital radio frequency-based (RF) technology. When an active product tag 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.

Mercadona plans to install some 2,000 systems and 3,500 deactivators, increasing the number of Checkpoint integrated scan deactivation systems in Spain to 19,000. Checkpoint's dominance in the Spanish supermarket industry has led to the formation of the Southern European RF Users Group. Together with Mercadona and the RF Users Group, Checkpoint will work closely with suppliers in order to add additional products to the 5,000, valued at $1.5 billion, currently available to Spanish manufacturers. Companies like L'Oreal, Proctor & Gamble and Seagrams are reaping the benefits from the program through increased sales while meeting the demand for heightened security in the stores.

Checkpoint's RF EAS systems are already being used by major retailers worldwide such as Albertson's, American Stores, Big W, Coles Myer, Ltd., Carrefour, Casino, Champion, Continente, Coop Italy, Despar, Eckerd Corporation, El Corte Ingles, Euromercato, GS Supermarkets Italy, Harrods, Ikea, Intermarche, La Rinascente, Kohl's Department Stores, Obi, Rite Aid Corporation, Target Corporation, Toys "R" Us and Walgreen Co.

Checkpoint Systems, Inc. is a $750 million 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. Operating in 27 countries, Checkpoint has a global network of subsidiaries and provides professional customer service and technical support around the world. Checkpoint Systems, Inc.'s web site is located at www.checkpointsystems.com.