Checkpoint Systems and Gemplus Collaborate On Joint Proposal for RFID Standardization

Edge: Work-Group Computing Report, March 27, 2000

Checkpoint Systems, Inc., (NYSE: CKP) and Gemplus world leaders in smart label solutions, Monday announced the submission of a joint proposal for the standardization of Radio Frequency Identification (RFID) smart labels operating at 13.56MHz. The proposal is in response to the International Standards Organization's (ISO/SC31) desire to develop an industry standard for RFID smart labels.

The goal of this ISO standard is to provide interoperability between various manufacturers' RFID smart labels and readers. The task of the ISO group is made more complex by the diversity of application requirements which cannot be satisfied by a single technology. Checkpoint and Gemplus recognized this and have developed a unique proposal that allows for multiple technologies by providing a common set of rules for all manufacturers to follow. The submission of this proposal by Checkpoint and Gemplus should accelerate the standardization process, which is essential for market acceptance and growth.

"For years we have been listening to customers requests for a standard for RFID smart labels," said Doug Karp, Checkpoint's Senior Director, RFID Product Development. "We have been heavily involved in the ISO standardization process over the past several years and believe this new proposal will result in a meaningful standard that will meet both existing and future market demands."

RFID technology combines an intelligent chip with a radio frequency antenna to deliver a smart label capable of storing, processing and communicating information while simultaneously providing enhanced security features. Smart labels function differently than barcodes, as they do not require line-of-sight reading allowing information to be exchanged at a distance. In addition, data on the smart labels can be modified and updated throughout the supply chain, and provide the ability to read multiple labels simultaneously. Applications are endless and include libraries and video stores, anti-counterfeiting, airline baggage, parcel tracking and item-level inventory management.

"Our approach to standardization stems from our belief that the user group requirements cannot be properly addressed by a 'one size fits all' solution which will slow down and stifle the expected growth of the RFID marketplace," said Frederic Coustere, Managing Director of Gemplus Tag. "Our proposal allows an easy integration of several technologies and encourages vendor creativity and technical innovation which ultimately will benefit the end users."

Gemplus Tag is a division of Gemplus, an $817 million company and world's leading provider of smart card based solutions. Gemplus Tag is dedicated to the identification of objects through RFID. The Group's technological expertise in the contactless field and its remarkable production capacity have contributed to Gemplus Tag world leadership in the manufacturing of smart labels. Gemplus Tag has a worldwide network of business partners who create turnkey solutions and provide local technical and commercial support to customers. Gemplus's web site is located at www.gemplus.com.

Checkpoint Systems, Inc. is a $750 million multinational company that manufactures and markets labeling systems designed to improve efficiency, reduce costs and provide value-added label solutions for customers across many markets and industries. Checkpoint is a leading provider of RF source tagging, barcode labeling systems, EAS, handheld labeling systems, and retail merchandising systems. Applications include automatic identification, retail security, and pricing and promotional labels. Operating in 27 countries, Checkpoint has a global network of subsidiaries and provides professional customer service and technical support around the world. Checkpoint Systems, Inc.'s web site is located at www.checkpointsystems.com.