Checkpoint Systems Signs EPCglobal IP Agreement; Solidifies Commitment to RFID Technology and the EPCglobal Network.

Business Editors/High-Tech Writers

THOROFARE, N.J.--(BUSINESS WIRE)--May 18, 2004

Checkpoint Systems, Inc. (NYSE:CKP), the leading provider of RF-based product identification and shrink management solutions for retailers and consumer package goods manufacturers, today announced it has signed the EPCglobal Intellectual Property (IP) Policy. The announcement represents Checkpoint's commitment to the EPCglobal Network and in the creation of open standards for the use of Radio Frequency Identification (RFID) technology in retail enterprise and supply chain applications worldwide.

EPCglobal, a joint venture between EAN International and the Uniform Code Council, is a not-for-profit organization entrusted by industry to establish and support the EPCglobal Network as the global standard for real-time, automatic identification of information in the supply chain of any company, anywhere in the world.

The organization has generated broad support from a wide range of industries representing leading retail, manufacturing, distribution, information technology providers, and government agencies working together to establish global standards that enable real-time identification and sharing of information across multi-industry supply chains.

"Checkpoint Systems is looking forward to working with EPCglobal and taking an active role in the standards development process," said John Thorn, Checkpoint Systems General Manager -- Supply Chain and Brand Solutions Group. "The critical thing is that EPCglobal has wide commercial support for its work across multi-industry segments here in the United States and abroad. From our perspective, all of this is creating an environment for the rapid development of intelligent, open standards that will enable the industry to grow more rapidly."

"An important part of the standards development process is the sharing of intellectual property," said Sue Hutchinson, Product Manager, EPCglobal US. "It is exciting to see how individual companies are joining together as a community to help innovate, fuel and drive the adoption of EPC technologies. There has never been a better time for companies to get involved and begin using EPC technologies today to benefit their businesses."

As a complement to traditional bar code-based tracking systems, Electronic Product Code (EPC) and RFID promise to be powerful tools for all retail supply chain participants. With the ability to identify individual items and communicate data without line-of-sight requirements, the solution increases inventory visibility and boosts efficiency at key checkpoints along the supply chain. Checkpoint Systems is currently working with more than 5,000 consumer package goods manufacturers (CPGs) and thousands of retailers worldwide, integrating RF tags to support shrink reduction, inventory control and asset management applications across the supply chain and throughout the retail environment.

"Next generation RFID technology holds tremendous potential for the retail supply chain and continues to be an integral part of Checkpoint's current offering and global business strategy," said George Off, Checkpoint Systems Chairman and CEO. "Checkpoint has been a leader in the development of RFID-based identification solutions for more than 35 years, and we are committed to sharing our experience and expertise to help accelerate the adoption of open standards in the global supply chain."

About Checkpoint Systems, Inc.

Checkpoint Systems, Inc., is a multinational manufacturer and marketer of technology-driven solutions for retail security, labeling, and merchandising. Checkpoint is the leading provider of radio frequency- (RF) based shrink management solutions to the $1 trillion global retail industry, including over half of the world's top 200 largest global retailers. In addition to its shrink management capabilities, Checkpoint's end-to-end supply chain technology helps apparel and consumer product manufacturers and retailers brand, track and secure goods worldwide. Checkpoint has a presence in more than 50 countries and a global network of 29 service bureaus located in the world's apparel manufacturing capitals.

A founding member of the MIT Auto-ID Center, Checkpoint's technology solutions include digital RF/EAS and RFID systems, RF source tagging, bar code labeling systems, EAS, handheld labeling systems, and retail merchandising systems. For additional information, visit Checkpoint Systems' web site located at www.checkpointsystems.com.

About EPCglobal Inc

EPCglobal Inc, a joint venture between EAN International and the Uniform Code Council (UCC), is a not-for-profit organization entrusted to drive the global, multi-industry adoption and implementation of the EPC Network(TM). EPCglobal leverages the nearly thirty year heritage of EAN International and the UCC in successfully partnering with industry. The neutral, consensus-based, standards organization aims to make organizations more effective by enabling true visibility of information about items in the supply chain by developing and managing standards for the EPCglobal Network. For more information on EPCglobal Inc visit www.EPCglobalinc.org.