Floor Ready, Integrated EAS Apparel Solutions Now Available; Checkpoint Systems, Avery Dennison, and Paxar Provide Complete Supply Chain Solution.

THOROFARE, NJ--(BUSINESS WIRE)--March 22, 1999--Checkpoint Systems, Inc., (NYSE: CKP), today announced that the leading manufacturers and distributors of labels for the apparel industry, Avery Dennison and Paxar, will integrate Checkpoint's newest electronic article surveillance (EAS) technology into their own ticket or woven label formats. With Checkpoint, each manufacturer will design, manufacture, and co-market colorful paper tags, labels or woven label materials which will integrate detectable EAS circuits into standard apparel ticket formats, or directly into garments. These source tagging solutions will provide retailers EAS-integrated floor-ready merchandise, saving retailers time and money previously spent tagging merchandise as it arrived.

Avery Dennison, one of the largest paper ticket producers for the apparel industry, has developed a variety of integrated EAS solutions. With Avery's expertise and patented processes, the Checkpoint "raw web material" is converted into apparel ticket formats yielding tag options featuring tear-resistant, full-color with variable laminates and thermal transfer, providing flexibility for retail applications.

"We are able to convert the Checkpoint RF circuit into a family of unique, functional apparel ticket formats that provide comprehensive solutions for the supply-chain. Customers like Mervyn's of California, a division of Dayton Hudson Corporation, are now receiving millions of these new generation tags providing broad merchandise theft-control which comes in floor-ready. This is a great money saving opportunity for today's retailer," said Pete Kuzma, Director of Technology and Product Innovation, Avery Dennison.

For a complete retail solution, Checkpoint also offers low cost Impulse(TM) source tags to protect virtually every item in today's apparel stores. Impulse(TM) RF circuits are easily embedded into such ticket formats as price tickets, promotional hang tags, pocket flashers, and fold-over joker tags. Tags can be directly embedded within shoes, or incorporated into the tags on items such as leather goods and jewelry tags which ensures the protection of the entire store's inventory.

Checkpoint and Paxar are integrating new EASyWear(TM) garment circuits from Checkpoint into Paxar's woven labels. This garment-integrated label solution is a powerful way to source tag for apparel retailers, especially for high-end merchandise. The EASyWear(TM) circuit is permanently sewn into garments, providing unnoticeable article surveillance. At the point of sale, the circuit is permanently deactivated with Checkpoint's patented, deactivation in counter pads or integrated scan/deactivation.

Paxar, a major supplier of graphic tags and woven labels for the apparel industry, now markets a complete line of apparel identification products with hidden RF circuits. "Checkpoint circuits are flat and can be easily hidden in a variety of tags and labels that our customers use to merchandise their goods. We can add the same high quality graphics and functionality creating value added security tags. The new EASyWear(TM) circuit will set new standards for apparel EAS - it is deactivated at the point of sale, and never has to be removed," said Chris Robins, Corporate Retail Marketing Manager of Paxar Corporation.

The source tagging solutions that will now be available to retailers complements the integrated loss-prevention systems provided by Checkpoint Systems. Invisible EAS tagging, in concert with Checkpoint's wide-aisle detection and transparent deactivation at point of sale, dramatically reduces internal and external theft without adding EAS-related labor costs.

Checkpoint Systems, Inc. located in Thorofare, New Jersey, is a leading provider of integrated security solutions to retailers, and a producer of billions of tags each year. The company has 350,000 systems in place worldwide with an international sales, service, and support network. Checkpoint is dedicated to providing state-of-the-art RF technology for retail, library, commercial and industrial applications. Checkpoint Systems, Inc.'s website is located at www.checkpointsystems.com.

Avery Dennison, with sales of $3.5 billion in 1998, develops, manufactures and markets innovative self-adhesive solutions for consumer products and label systems. Based in Pasadena, Calif., the company makes a wide range of products for consumer and industrial markets, including Avery-brand office products, Fasson-brand self-adhesive materials, peel-and-stick postage stamps, battery labels, automated retail tag and labeling systems, and specialty tapes and chemicals. Approximately 16,100 employees in 200 manufacturing and sales facilities produce and sell Avery Dennison products in 89 countries.

Paxar is the worldwide leader in apparel identification, and a leading provider of identification and tracking solutions to customers across the retail supply chain. Paxar markets and distributes its products in over 75 countries to more than 10,000 manufacturers, distributors and retailers.