Sensormatic, EMI and leading retailers implement the United Kingdom's first music industry source tagging tests.

BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 21, 1996--Sensormatic Electronics Corporation (NYSE:SRM) announced that for the first time in the UK, music CDs have been source tagged against shoplifting using electronic anti-theft labels applied during the manufacturing process.

In the largest and most comprehensive European test of music source tagging to date, leading UK retailers, record producer EMI and electronic security supplier Sensormatic, have collaborated to trial electronically source tagged CDs using Sensormatic's Ultra.Max(r) system. This system uses the acousto-magnetic technology the British Association of Record Dealers (BARD) endorsed in January 1996 when it was recommended as the UK music industry standard for loss prevention.

Source tagging allows for dormant or non-active labels to be applied to stock during the manufacturing or packaging process rather than at the store level. This reduces both the time and cost associated with in-store labeling as well as the possibility of human error in the application process. The labels are then simply activated in-store. An advantage of Sensormatic's Ultra.Max(r) system is that the labels can be activated and de-activated limitless times.

Twenty-eight thousand CD copies of the British group Reel 2 Real's new album `Are You Ready For More,' released on July 14, have been protected at the source. The CDs are shipped with dormant or non-active labels to 50 participating stores including 25 outlets of HMV plus Virgin, WH Smith, Our Price, Tower Records and Sam Goody stores. HMV has made a global commitment to the acousto-magnetic technology.

Once in-store the anti-theft labels are activated and the CDs are displayed `live' on the shelves. When sold, the anti-theft label is de-activated at the point of sale. Should protected CDs leave the shop without being de-activated the label will trigger the in-store security system.

Richard Green, technical director at EMI, said: "Shoplifting is a problem for everyone in the music industry, retailers and record companies alike, but by working together to put source protection in place we can strengthen our efforts against crime. Source protection is a major step forward in the battle against shop theft."

The labels are applied to the CD trays by plastics manufacturer White Knight before going to EMI's manufacturing facility where the CD and packaging are added. All source tagged CDs carry a distinct warning sticker to discourage theft. A further three to four source protected CDs are scheduled to be released in the UK before Christmas.

Mark Stafford, director of source protection at Sensormatic UK said: "Store applied anti-theft labels are traditionally attached to the outside of the CD making them labor intensive to apply and, although difficult, it is possible to remove them. However, with source protection, labels are completely hidden in the casing and are far more difficult for thieves to tamper with. This trial will demonstrate the speed of the process, the time saved by retailers previously taken in applying labels in-store, and the reliability of the system."

BARD Secretary General Bob Lewis said he is pleased with the co-operation shown by retailers and record companies working together. If the tests prove successful, BARD hopes to secure support from other suppliers. BARD also hopes, together with its European counterparts, to move the European music industry toward a universal standard.

The UK test coincides with PolyGram's announcement in the USA that it will begin source protecting new American releases with acousto-magnetic labels from July of this year. All PolyGram products are expected to be covered by January 1997.

Sensormatic Electronics Corporation is committed to source protection, has dedicated global resources to its implementation and has already established over 600 vendor source protection programs worldwide.

The world leader in electronic security and the Official Electronic Security Supplier for the 1996 Olympic Games in Atlanta, Sensormatic is a fully integrated supplier of electronic security systems to retail, commercial and industrial markets.

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.

For more information on Sensormatic, visit its World Wide Web site at http://www.sensormatic.com.

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. -0-

NOTE TO EDITORS: In the World Wide Web address noted in this news release, there is a double slash between http: and www.sensormatic.com.. These symbols may not appear properly in some systems.

CONTACT: Sensormatic Electronics Corp., Boca Raton

Lee Pernice, Communications Manager

561/989-7361