Checkpoint Systems Wins Contract With Leading Brazilian Drugstore Retailer, Pague Menos; Replaces Competitive Technology, Begins Source Tagging.

Business Editors

THOROFARE, N.J.--(BUSINESS WIRE)--Aug. 22, 2002

Checkpoint Systems, Inc. (NYSE: CKP), a leading provider of supply chain management and security solutions worldwide, has been selected by Pague Menos, a leading Brazilian drugstore group, as their exclusive provider of security solutions, including source tagging.

The contract, the largest in Brazil's drugstore industry, covers all 202 Pague Menos stores. The chain-wide installation will be completed over the next three months.

Pague Menos's integrated EAS program will include the installation of Checkpoint's new digital radio frequency (RF) EAS systems, an aggressive source tagging initiative to its vendors, integrated labels and scan/deactivation. Pague Menos will also use advertising panels in the EAS systems. The systems protect the stores from theft and provide promotional messages at the same time.

"We've been working with Checkpoint's technology for some time now and have been extremely satisfied with the way their systems have performed and the efficiencies they've brought to our operation," said Francisco Deusmar, President of Pague Menos. "Because of that, we chose Checkpoint's RF platform, which we believe to be the technology that's setting the standard in Latin America."

In addition to the system roll-out, Checkpoint will train Pague Menos's store management in the most effective way to operate the system and where to place the labels on merchandise to generate the best detection.

"This is an important win for us because it continues to validate the worldwide market share we have in the chain drugstore industry," said Dave Shoemaker, group vice president, strategic marketing of Checkpoint Systems. "Our drugstore clients all have very robust source tagging programs, and much of the work with major drugstore vendors has already been done."

Worldwide, Checkpoint's RF EAS systems are already being used by major retailers such as Target Corporation, Albertsons/American Stores, Circuit City Stores, Eckerd Corporation, Linens `n Things, Rite Aid Corporation, Toys `R' Us, and Walgreen Co. in the USA; Canadian Tire and Shoppers Drug Mart/Pharmaprix in Canada; B&Q, Sainsbury and Wickes in the United Kingdom; Alcampo, Pryca/Carrefour Continente, and El Corte Ingles in Spain; Intermarche, FNAC, Casino, and Carrefour in France; El Norte in Argentina; Big W and Coles Myer Ltd. in Australia.

About Pague Menos

In May 1981, Pague Menos opened its first drugstore with an innovative mission: to take medicines at reduced prices to areas were they were needed most. From then on, Pague Menos built a network of drugstores that demonstrate total respect for its customers. After quickly expanding to 30 stores, Pague Menos began to diversify the product lines and services. This allowed Pague Menos to expand into the interior of Ceara and other areas of the North and Northeast of Brazil. More information on Pague Menos can be found online at www.paguemenos.com.br.

About Checkpoint Systems, Inc.

Checkpoint Systems, Inc. is a multinational company that manufactures and markets labeling systems designed to improve efficiency, reduce costs and provide value-added supply chain 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, EAS, handheld 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 website is located at www.checkpointsystems.com.