RFID Intelligent Library System Delivers Patron Self Service Through New Technology.

THOROFARE, NJ--(BUSINESS WIRE)--June 2, 1999--

Checkpoint Systems, Inc., (NYSE: CKP), today announced that Farmington Community Libraries in Michigan, is installing Checkpoint's Intelligent Library System(TM) (ILS), the first library management system built upon leading-edge radio frequency identification (RFID) technology. The ILS enables Farmington Library to deliver unprecedented services long desired by librarians. Farmington Library joins Rockefeller University Library in New York, and Gloucester County Library in New Jersey, which report dramatic results since they installed the ILS early this year. Checkpoint's ILS uniquely gives libraries patron self-check-out, inventory control, circulation management, and loss-prevention; all integrated into one system.

Checkpoint's RFID technology provides "intelligence" to each item in a library collection. A circulation circuit(TM), which is a paper-thin, flexible tag, contains a 96K bit microprocessor chip and is permanently applied to each item in a library's collection. Individual item-level detail makes each item in a collection uniquely identifiable.

A main advantage of the ILS' RFID technology is its freedom from line-of-sight reading requirements. The "intelligence" contained on the tags is "grabbed" regardless of item alignment enabling patron self-checkout, as well as rapid inventory even in stacked shelves. The Intelligent Library System(TM) has reduced the time it takes to conduct inventory from four or five months to one day. Self-service offers patrons privacy, enhances customer relations by eliminating long checkout lines, and frees library staff to assist other customers, while offering enhanced security of the library's collection. The library's existing book return, outfitted with an ILS reader, immediately reactivates the security function and automatically updates the circulation system upon the item's return.

"One of the keys to our rapid success is that the system was designed with input from librarians, for librarians, and then given full support by our engineers who work closely with the libraries to ensure the ILS meets their expectations. Librarians are telling us the installed systems are even exceeding expectations. For example, check-out/check-in time by attendants has been reduced by 80%. The technology is anticipated to deliver an additional benefit of eliminating repetitive stress syndrome injuries that are common with traditional check-out/check-in procedures", commented Emmett Erwin, Director Library Division, Checkpoint Systems.

"This is the beginning of a new era in inventory management," said Kevin Dowd, President and CEO of Checkpoint Systems. "RFID technology has tremendous application in many industries and is leading to self check-out, enhanced inventory control and loss prevention at video stores and other retailers," added Mr. Dowd.

Farmington Community Library is installing Checkpoint's ILS into both its main library and its branch. With a collection of over 300,000 items including books, videos, and cassettes, Farmington will effortlessly maintain circulation and inventory control between its branches.

The ILS is a complete library security and collection management system integrated with circulation systems through application software. Components of the system include: Circulation Circuits(TM), Patron Self Check-out Station, Inventory Wand, Intelligent Sensors, Circulation Circuit Programmer, Staff Station Reader, and an Application Software Program. Checkpoint has designed and manufactured all units which provides a complete turn-key operation. Ameritech Library Services and Innovative Interfaces Inc., the leading providers of library circulation software, recognized the lead Checkpoint's ILS was creating and developed interface modules to enable full integration of library's existing systems with Checkpoint's ILS.

Checkpoint Systems, Inc. (NYSE: CKP), headquartered in Thorofare, NJ, is the world's leading supplier of RF antennas and disposable tags for retail electronic article surveillance. Checkpoint RFID tags utilize state-of-the-art RFID integrated circuits jointly-developed with Microchip Technology, Inc. of Chandler, Arizona. Checkpoint offers a family of RFID products (tags and readers) which target applications in library, industrial, commercial, VAR, and retail markets. As a global provider, Checkpoint has 350,000 systems in place worldwide, produces several billion electronic labels per year, and has an international sales, service, and support network. Checkpoint is dedicated to providing state-of-the-art RFID and RF/EAS technology for retail, library, commercial and industrial applications. Checkpoint Systems, Inc.'s website is located at www.checkpointsystems.com