Checkpoint and Gigante of Mexico Sign RF EAS Contract.

THOROFARE, N.J.--(BUSINESS WIRE)--Aug. 27, 1997--

Leading Mexican Hypermarket Already Source Tagging With Vendors

Checkpoint de Mexico, S.A. de C.V. has signed a contract with Gigante, S.A. de C.V., one of the largest hypermarket chains in Mexico, for the immediate installation of radio frequency electronic article surveillance (RF EAS) systems in 53 Gigante stores, with 25 additional stores scheduled to be similarly outfitted by the end of the year. Gigante has 194 stores.

The decision to use Checkpoint's equipment came after a six-month pilot program, in which Gigante was able to reduce shrinkage more than 50 percent by utilizing RF EAS sensors in its music departments, augmented by sensors at the exit doors.

"After our initial experiences with Checkpoint's equipment, it was obvious that they could provide us with the loss prevention solutions we were seeking," said Leonardo Perez, Gigante's security manager. "Of all the EAS systems providers, Checkpoint proved itself to be superior in both technology and service."

Gigante has also begun implementing its source tagging program with some of its major vendors for razor blades, batteries, film and cameras and liquor products. Source tagging is the process which allows a small, paper-thin RF label to be embedded in the product packaging at the point of manufacture.

"It is significant that Gigante has chosen Checkpoint's RF EAS technology to protect its music departments, as this technology does not degrade pre-recorded video and audio tape quality when the tag is deactivated," said Kevin P. Dowd, Checkpoint's president and CEO. "With this decision, Gigante joins other major international retailers who have acknowledged Checkpoint as the leader in integrated security solutions."

Checkpoint's RF EAS systems are already being used by retailers worldwide, such as American Stores Company, Big W, Dayton Hudson Corporation, Eckerd Corporation, El Corte Ingles, Harrods, Kohl's Department Stores, Rite Aid Corporation, Target Stores, Toys "R" Us Canada, Venture Stores and Walgreen Co. More than 270,000 Checkpoint RF EAS systems are installed worldwide, including department stores, supermarkets and chain drug outlets.

Checkpoint Systems Inc. (NYSE: CKP), 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 (RF) source tagging, which allows paper-thin RF labels to be embedded into products or product packaging.

Visit Checkpoint Systems Inc.'s Web site at www.checkpointsystems.com.

CONTACT: Mallory Factor Inc.

Steven Gaynes, 212/350-0000 ext. 323

or

Checkpoint Systems, Inc.

Glenda Laudisio, 800/257-5540 ext. 2411

or

Checkpoint de Mexico, S.A. DE C.

Jorge Cruz, 011/52 5 579 3733