Checkpoint Systems announces radio frequency source tagging partnership with Microsoft Corporation.

THOROFARE, N.J.--(BUSINESS WIRE)--Nov. 14, 1996--Checkpoint Systems, Inc. (NYSE:CKP) has formed a partnership with Microsoft Corporation to use Checkpoint's paper-thin radio frequency (RF) labels to protect Microsoft Office '97 products from theft at the retail level. Beginning with the launch of Microsoft Office '97 in January, Microsoft will embed the RF labels inside the packaging to enhance security and encourage open merchandising.

Taking a leadership role as the first software manufacturer to source tag, Microsoft wants to create a positive buying experience for consumers by supporting its retail partners in this way. "We are convinced that source tagging will help our retail partners increase their profits by getting Microsoft Office out of lock-ups and onto store shelves where consumers will have easier access to purchase it. One of the reasons we are using Checkpoint's RF labels is that Checkpoint already has a sizable installed base of EAS (electronic article surveillance) systems in many of our key retail partners' stores," said Ed McCahill, marketing manager at Microsoft's End User Customer Unit.

Leading retailers, such as Circuit City, Egghead Software, Staples and Target Stores, are using Checkpoint's EAS systems. According to Dave Shoemaker, vice president of business development for Checkpoint, Microsoft joins hundreds of other retail vendors in providing RF source tagged merchandise. "We are extremely pleased with Microsoft's decision to RF source tag for our shared retail customers. We believe that RF technology is uniquely suited to protect computer related products from theft because of its flexibility and because RF labels can be hidden deep within software packaging. As a long-term solution, RF delivers the lowest-cost, most efficient means of controlling shoplifting in retail stores," said Mr. Shoemaker.

Checkpoint Systems, Inc., located in Thorofare, New Jersey, is a leading provider of integrated security solutions for retailers worldwide. The company is also the leading provider of radio frequency source tagging, which allows its paper-thin RF tags to be embedded into products or product packaging.

CONTACT: Mallory Factor Inc., New York 

Steven Gaynes, 212/242-0000

or

Checkpoint Systems, Inc., Thorofare

Glenda Laudisio, 800/257-5540, ext. 2411