Business Services Industry

Alien Technology® Withdraws Registration Statement for Initial Public Offering

Business Wire, August 4, 2006

MORGAN HILL, Calif. -- Alien Technology Corporation today announced that the company has withdrawn its Registration Statement on Form S-1 with the Securities and Exchange Commission and has determined not to proceed with the registration and sale of its common stock at this time. No shares of the Company's common stock have been sold pursuant to the Registration Statement. The Company may undertake a subsequent private offering of securities in reliance on Rule 155(c) of the Securities Act.

"Alien has decided not to proceed with an IPO at this time due to market conditions," said Stav Prodromou, CEO, Alien Technology. "While we are evaluating the options for our future financing needs, we are taking prudent cost reduction actions to continue to effectively manage and grow our business and support our customers going forward."

About Alien Technology

Alien Technology provides UHF Radio Frequency Identification (RFID) products and services to customers in retail, consumer goods, manufacturing, defense, transportation and logistics, pharmaceuticals and other industries. Organizations use Alien's RFID products and services to improve the effectiveness, efficiency and security of their supply chains, logistics and asset tracking operations. Alien's products include RFID tags, RFID readers and related training and professional services. Alien's patented Fluidic Self Assembly (FSA) technology and related proprietary manufacturing processes are designed to enable the manufacture of high volume, low cost RFID tags.

Alien was founded in l994. The company's facilities include: its corporate headquarters in Morgan Hill, CA; an RFID tag manufacturing facility in Fargo, ND; the Alien RFID Solutions Center, in the Dayton, Ohio area, and sales offices in the US, Europe and Asia. Alien is a member of EPCGlobal. More information about Alien is available at www.alientechnology.com.

Alien, Alien Technology, the Alien logo, RFID Solutions Center and FSA, are trademarks or registered trademarks of Alien Technology Corporation in the United States and other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.