Checkpoint Systems and PSC to Demonstrate EPC/RFID-Ready Point-of-Sale Barcode Scanner; Product Demos Available at FMI Show Booth # 3560.

Business Editors/High-Tech Writers

FMI Show 2003

Booth #3560

CHICAGO--(BUSINESS WIRE)--May 5, 2003

Checkpoint Systems, Inc. (NYSE:CKP), a leading provider of shrink management and supply chain technology solutions worldwide, and PSC Inc., a global provider of integrated data-collection solutions and services for the retail supply chain, today demonstrated a multi-function point-of-sale (POS) bar code scanner concept that incorporates today's Electronic Article Surveillance (EAS)-ready bar code scanner technology with next-generation Electronic Product Code/Radio Frequency Identification (EPC/RFID) reader technology.

The bar code application was unveiled at the FMI/Auto-ID Center EPC Demonstration Booth during the FMI Show in Chicago, May 4th-6th, booth # 3560.

The Checkpoint-PSC multi-function POS bar code scanner concept demonstrates how Electronic Article Surveillance (EAS), Electronic Product Codes/Radio Frequency Identification (EPC/RFID) and Universal Product Codes (UPC) can coexist at the store level, and over time can converge in an EPC-rich environment.

"Just as PSC led retailers into the era of scanning over 25 years ago, we are committed to leading the industry into the future with cutting-edge point-of-sale item identification and security solutions. Working with innovative companies such as Checkpoint Systems will help us to accomplish this goal," said Edward J. Borey, President and CEO of PSC Inc.

As part of an educational forum at the FMI Show, Checkpoint, PSC and other vendors are demonstrating how proven technologies like the optical bar code scanner and new Radio Frequency-based (RF) EPC technologies are likely to coexist and ultimately converge, how these technologies might improve inventory visibility and how these new concepts may impact the retailers' legacy systems and processes from the front end of the store to the shelf, stockroom, distribution center and other key points in the supply chain.

"We are excited about the progress of the MIT Auto-ID Center and fully support their efforts for the open standards required to make EPC a reality," said John Thorn, Senior Director of New Business Development for Checkpoint Systems, Inc. "While EPC tags are not yet economically viable for many item level applications, and are likely to coexist with and EAS technologies for some time, there may be select product categories that can benefit from these technologies in the not-too-distant future. We look forward to working with progressive companies like PSC to deliver forward thinking inventory visibility and control solutions."

Mr. Thorn noted that Checkpoint's program of partnering with pioneering retail and technology partners like PSC can help design next-generation information delivery solutions that can integrate with legacy systems - mitigating the difficulty retailers face in the adoption challenges inherent in new technology integration.

About Checkpoint Systems, Inc.

Checkpoint Systems, Inc., is a multinational manufacturer and marketer of technology-driven solutions for access control, 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. Checkpoint Systems, Inc.'s website is located at www.checkpointsystems.com.

About PSC Inc.

PSC provides innovative data-collection solutions for the retail supply chain worldwide. Its range of products includes mobile and wireless data-capture terminals, self-checkout systems, and fixed-position and handheld scanners. PSC(R) products are used to improve efficiency, speed, and agility in the retail, and warehouse and distribution sectors. Headquartered in Portland, Oregon, PSC has major manufacturing facilities in Eugene, Oregon, as well as sales and service offices throughout the Americas, Europe, Asia and Australia. To learn more about PSC, visit www.pscnet.com or contact us at 1-800-695-5700.