RSI ID Announces Production of Gen 2 RFID Labels; Company Among the First to Go to ``Real'' Production With EPC Compliant Gen 2 Labels

CHULA VISTA, Calif.--(BUSINESS WIRE)--Aug. 29, 2005--RSI ID Technologies (RSI), one of the nation's only vertically integrated providers of RFID technology, today announced that it is now in the production phase of one of the industry's first batch of EPC compliant second generation RFID labels. Gen 2 RFID promises faster processing speeds and overall increased performance and is expected to drive the widespread adoption of RFID technology. RSI's labels will begin shipping immediately.

RSI has experience building more than 20 million RFID tags, and expects to produce approximately 100 million Gen 2 labels in 2006, ramping total production to approximately 300 million labels per year by 2007. RSI customers currently using first generation labels and equipment will be offered a seamless migration path to Gen 2, as existing label formats will be based on the same form factor as first generation labels, with the only change being the silicon chip.

“The adoption of Gen 2 will provide a standards-based framework for enhanced features and significant process improvements, including robust operation in high-density reader environments, compliance with global spectrum regulations, superior tag throughput and improved accuracy. We're excited that our labels are now in production.”

RSI has leveraged its assembly line machinery and a new patented process to integrate Gen 2 silicon chips into EPC compliant labels. The company's in-house capabilities enable them to pair the Gen 2 silicon chip with an antenna, assemble the two components into an inlay and convert the inlays into Gen 2 compliant, pressure-sensitive labels. These labels are the first to fully support all features of the Gen 2 specification. With the manufacture of the Gen 2 labels, RSI is able to provide its customers with fully Gen 2 compliant RFID solutions, and because all testing is done on site at RSI, the company promises 100 percent "good tags."

According to industry analyst firm Datamonitor, overall RFID technology revenues will triple by 2010, reaching $6.1 billion. Gen 2 labels and technologies are expected to deliver significant internal operational enhancements, such as improving traceability, eliminating process bottlenecks and optimizing inventory levels for organizations. It will also offer increased security features such as encryption, password protection and authentication.

"Gen 2 RFID will overcome most of the limitations of older Class 0 and Class 1 technologies," said Wolf Bielas, founder and CEO of RSI ID Technologies. "The adoption of Gen 2 will provide a standards-based framework for enhanced features and significant process improvements, including robust operation in high-density reader environments, compliance with global spectrum regulations, superior tag throughput and improved accuracy. We're excited that our labels are now in production."

Pricing & Availability

RSI's Gen 2 RFID labels are available immediately and can be ordered by contacting 1-800-466-8247 or emailing [e-mail]. RSI will offer the most competitive pricing in the market on large-scale orders.

About Gen 2

The EPCglobal Gen 2 class of products, the newest and most advanced of the EPCglobal RFID specifications for the UHF band centered around 900 MHz, overcome limitations of EPCglobal's older Class 0 and Class 1 solutions providing a framework for an enhanced feature set and improved performance such as robust operation in high-density reader environments, compliance with global spectrum regulations and superior tag throughput.

About RSI ID Technologies, Inc.

RSI ID Technologies is one of the only vertically integrated providers of RFID technology that enables customers to tag, scan and track information - resulting in increased productivity, reduced operating costs, streamlined operations and immediate ROI.

RSI ID Technologies offers a full line of RFID antennas, inlays and labels as well as "smart" shelving and real-time location systems, portals, custom software development and middleware integration. In addition, the company provides a full range of support services, training and consulting.

As a systems integrator specializing in process automation and optimization systems, the company's applications also include asset tracking, warehouse management systems, wireless networks, inventory control, product marking, bar code scanning and thermal printing.

RSI ID Technologies' clients include more than 70 Fortune 500 firms, a dozen of Wal-Mart's top 100 suppliers, along with hundreds of mid-range companies involved in industries including electronics, telecommunications, healthcare, automotive and aerospace.

For more information, please see www.rsiidtech.com.