HMV establishes worldwide standardization for loss prevention; Company Commits to Sensormatic's Ultra Max Technology.

BOCA RATON, Fla.--(BUSINESS WIRE)--Feb. 28, 1996--Sensormatic Electronics Corporation (NYSE: SRM) today announced that HMV Group, one of the world's largest music and video chains, has adopted Sensormatic's Ultra Max acousto-magnetic electronic article surveillance (EAS) loss prevention technology. Ultra Max is the recognized standard in loss prevention technology for source tagging in the United Kingdom's music sector.

"We have adopted acousto-magnetic technology as the standard for the future because it is the best product currently available as well as its potential for source tagging," said Duncan Bell, business development and systems director at HMV Group, headquartered in Marlow, England. "Key criteria for us are high detection rates, low susceptibility to interference, ability to reactivate tags, and ability to cover wide entrances. Ultra Max scores highest on all these."

HMV, a subsidiary of London-based THORN EMI, will be developing plans to convert all stores to Ultra Max in the near future.

"By getting all our businesses to use Ultra Max we will be well placed to move to source tagging as soon as it happens on an industry-wide basis," said Bell. "And we will be looking into the possibility of conducting source protection trials in the United Kingdom once we have a critical mass of stores using the Ultra Max system."

Source tagging is the process of applying anti-theft tags into or on product during manufacturing, packaging or distribution rather than at the retail store. Merchandise arrives at the store pre-tagged, eliminating the labor associated with applying the label at the store level.

HMV's announcement follows the British Association of Record Dealers' (BARD recent recommendation to the music industry to source tag compact discs and other home entertainment products with acousto-magnetic EAS anti-shoplifting labels.

According to Bob Lewis, secretary general of BARD, "Sensormatic's Ultra Max acousto-magnetic EAS technology was considered the best solution by music retailers because of its high detection rate, false-alarm free performance, unlimited activation and reactivation capabilities and wide exit coverage potential."

BARD's announcement to adopt acousto-magnetic technology as an industry standard follows a January 1995 reaffirmation by its United States counterpart, the National Association of Recording Merchandisers (NARM), that music companies begin to source tag compact discs with acousto-magnetic EAS anti-shoplifting labels.

"Source tagging is taking the music industry by storm," said Mark Stafford, director of source protection at Sensormatic Electronics Corporation London office. "This is evident by the collective acceptance by industry leaders and their efforts to create source tagging standards. The recent BARD and British Retail Consortium (BRC) endorsements, in addition to NARM's recommendation, will greatly help to enhance source protection."

HMV Group operates some 330 stores in the following markets: Australia, Canada, Hong Kong, Ireland, Japan, United Kingdom and the United States. Net sales for 1994 were $781 million.

Sensormatic Electronics Corporation, the world leader in electronic security and the Official Electronic Security Supplier of the 1996 Olympic Games, is a fully integrated supplier of electronic security to the retail, gaming, commercial and industrial markets. Sensormatic is also a leader in integrated source tagging -- a process where consumer goods manufacturers apply anti-theft tags at the point of packaging or manufacturing.

The Company's electronic article surveillance (EAS), closed-circuit television (CCTV) and exception monitoring systems are used by both soft goods and hard goods retailers to deter shoplifting and internal theft. Sensormatic's CCTV, access control and electronic asset protection (EAP) security systems are used by retail, commercial and industrial customers to protect assets, information and people. All of the Company's products are marketed by an extensive worldwide sales and service organization complemented by a broad distribution network.

CONTACT: Cam Granstra

Cohn & Wolfe

[phone]

or

Louis Chiera

Sensormatic Electronics Corp.

[phone]