Texas Instruments RFid Systems Supports ISO/IEC 14443 Type B With New Contactless Payment Platform.

Business Editors/High-Tech Writers

DALLAS--(BUSINESS WIRE)--Feb. 24, 2003

Texas Instruments RFid Systems (TI-RFid(TM)), a leading integrated manufacturer of radio frequency identification (RFID) tags, smart labels and reader systems, today announced it has developed a highly flexible and secure ISO/IEC 14443 Type B technology platform for proximity payment transactions. Texas Instruments is currently sampling a low-cost standards-based Proximity Coupling Device (PCD) reader module to key customers and is developing Proximity Integrated Circuit Card (PICC) chips, which will be fully compliant with ISO/IEC 14443 Type B, parts one through four. Samples of the new chips will be available in early Q2, 2003.

The ISO/IEC 14443 standard allows for increased security due to a faster rate of data exchange, as required for financial transactions. This enables transaction information to be securely stored on the radio frequency (RF) chip and securely transmitted over the contactless interface. American Express, Mastercard and Visa have endorsed the ISO/IEC 14443 standard for contactless payment applications.

Texas Instruments' new platform is easy to implement and highly scalable to meet the current and evolving needs of the wireless payment market. The chip features include a flexible and configurable memory architecture and file system that support multiple applications, and dynamic encryption capability using National Institute of Standards and Technology (NIST) approved Triple DES and SHA-1 crypto algorithms. The chip can be packaged into various forms from ISO 7810 cards to innovative custom three-dimensional tokens such as keyfobs, using Texas Instruments' extensive expertise in custom token manufacturing.

"From public transit to retail stores, companies increasingly want a standards-based proximity payment solution that is secure, fast, and easy to implement," said Dave Slinger, vice president, Texas Instruments and general manager, TI-RFid Systems. "ISO 14443 fully satisfies end user requirements for contactless payment transactions. There is growing industry-wide support for Type B of the standard - leaving us with a clear decision to develop a flexible 14443 Type B technology platform to complement our existing RF product portfolio, better serve our current and potential customers and enhance our market leading position."

RF is a widely deployed, mature technology for contactless consumer payment that benefits the merchant, the device issuer and the consumer. In 1997 Texas Instruments launched its RF technology for wireless payment with the introduction of the ExxonMobil Speedpass(TM), which has been deployed in North America with more than 6.5 million active users. TI's new ISO/IEC 14443 platform is designed to support a range of payment systems used in the market today, while offering a migration path to the future. Target markets include financial institutions, public transit, hospitality, vending, quick-serve restaurants and general retail.

About Texas Instruments RFid Systems

Texas Instruments Radio Frequency Identification (TI-RFid(TM)) Systems is an industry leader in radio frequency identification (RFID) technology and the world's largest integrated manufacturer of RFID tags, smart labels and reader systems. With more than 200 million tags manufactured, TI-RFid technology is used in a broad range of applications worldwide including access control, automotive, document tracking, livestock, product authentication, retail, sports timing, supply chain, ticketing and wireless payment. For more information, contact TI-RFid at 1-888-937-6536 (North America) or [phone] (International), or visit the company's Web site at www.ti-rfid.com.

Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company's businesses include Sensors & Controls, and Educational & Productivity Solutions. TI is headquartered in Dallas, Texas and has manufacturing, design or sales operations in more than 25 countries. Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at www.ti.com.