PAXAR RFID MARKET UPDATE

Marks & Spencer has confirmed that it will expand its Radio Frequency Identification (RFID) trial to 53 stores starting in the spring of 2006.

Through Paxars strong business relationships with chip and antenna manufacturers, it has been able to develop an antenna for the trial that ensures when the finished tag is finally constructed, that it is tuned to the correct reader frequency. In instances where this hasnt been done, the antenna runs the high risk of detuning as a result of lamination, which accordingly reduces the read-range performance of the finished label.

Paxar Corporation is a leading provider of fully integrated and innovative labelling, merchandising and identification solutions for apparel manufacturers and retailers. Paxar EMEA is the exclusive manufacturer for the supply of the RFID tags.

INVESTMENT IN RFID
In February this year, Paxar announced that its RFID laboratory and testing facility in Miamisburg, Ohio, is available for use, free of charge, by selected Paxar customers and partners.

Paxar works closely with customers, providing cost-benefit analysis and hands-on testing to determine the optimal type of tags and tag placement on customers' products which will result in the highest read rates at the lowest prices.

QUALIFIED FOR ALIEN TECHNOLOGY
Also in February, Paxar announced that it was recently qualified by Alien Technology as a supplier of high quality RFID smart labels containing Alien Class 1 transponders.

Users of RFID technology can order smart labels directly from Paxar, with pre-qualification from Alien that the labels will be of high quality and performance. Paxar had previously been designated as an Alien printer/encoder partner, making it the first company to receive Alien's qualification in both printer/encoders and smart labels.

Alien Technology Corporation is a leading provider of Radio Frequency Identification (RFID) products for customers in government, retail, manufacturing, pharmaceuticals, transportation, and other industries. Alien is a member of EPCglobal.

RFID TECHNOLOGY INVESTMENT PROTECTION PROGRAMME
In 2004, Paxar announced the launch of its unique and innovative RFID Technology Investment Protection Programme, or TIPP, available to retailers and their suppliers. The programme addresses suppliers needs to implement RFID quickly and effectively, as well as comply with the tedious and stringent requirements to provide shipments with RFID encoded labels.

TIPP comes in the form of specially catered RFID solutions kits, and includes everything customers might need, from Paxar's Monarch 9855 RFID bar code printer/encoder through to the labels and software, all covered under Paxars 12 month complimentary on-site upgrades and technical support..

MONARCH Q-SERVICE
Furthermore, at the end of 2004, Paxar announced the roll out of the industrys first express-shipped RFID service bureau, named Monarch Q-Service. The service, which is now fully operational, enables suppliers and global retailers needing RFID shipping and pallet labels to take fast delivery of these labels, programmed with unique RFID data and printed with bar code and human readable data. A major benefit stemming from Paxars Monarch Q-Service includes the ability for suppliers to meet retailers current RFID needs without having to invest in expensive hardware or systems.