May 2007

1. FOCUS

A Red Herring for IDENTEC SOLUTIONS

A New Wave in Port Management

IDENTEC SOLUTIONS wins CAT Project from Wavetrend


2. TRADE SHOWS

MASTERS at RFID.


3. INSIDE NEWS

IDENTEC SOLUTIONS ads Technical Savvy to Management Team.

IDENTEC SOLUTIONS Continues to Innovate

 

 

g   Message from the CEO.

Gerhard All eyes continue to be on IDENTEC SOLUTIONS as we cement our position as the leading commercial provider of active RFID Solutions. The excitement and energy has never been more apparent as we enjoy a burgeoning roster of new and existing customers and partners.

This spring has been busy with IDENTEC SOLUTIONS expanding its relationship with Horizon Lines, a leading domestic ocean container and logistics Company and further penetrating the Port and Yard Management market through our new relationship with NAVIS, the global leader in marine terminal solutions. In addition we had to make a little more room on the mantle for the Red Herring Award which confirmed what our partners and customers already knew - IDENTEC SOLUTIONS is the leader in the next wave of innovation.

I’m delighted to announce the addition of Stefan Schwiers as VP Technology, ILR this past quarter which has already resulted in a number of new product developments designed to significantly differentiate ILR Technology from competitive systems and to drive more value for our customers and partners.

A big thank you to all of the IDENTEC SOLUTIONS team for their hard work and effort this past quarter - it’s because of you we are the industry leader in active RFID Solutions.

A great big thank you to our partners and customers who appreciate, celebrate and share in the excellence and value of our technology. It’s our pleasure to work alongside such esteemed industry leaders and innovators. And to those who haven’t yet joined the growing IDENTEC SOLUTIONS family, we hope to see you soon.

Best regards,

Gerhard Schedler
Vorstand/CEO

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1. FOCUS

g  A Red Herring for IDENTEC SOLUTIONS.

Red herring

IDENTEC SOLUTIONS is proud to be one of the top 100 companies identified as a leader for the next wave of innovation.

Recently at the Venture Market Europe Conference in Cannes, France, IDENTEC SOLUTIONS was presented with the coveted Red Herring Europe Top 100 Awards.

In order to receive this honor, organizations were carefully screened and selected from Europe, the Middle East and Africa. Finalists were later subjected to in-depth analysis and evaluation based on business models, profitability forecasts, management, technological advancement, and the ability to make a lasting impact in the marketplace and throughout industries. As the only RFID provider to receive this award, IDENTEC SOLUTIONS once again emerged as an innovative leader in the global marketplace.

Red Herring is a respected global media company uniting the world’s high technology innovators, venture investors and business decision makers in a variety of forums including a leading innovation magazine, an online daily technology news service (www.redherring.com), technology newsletters, and major events for technology leaders around the world.

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g  A New Wave in Port Management.

Horizon

Building on our successful deployment with Horizon Lines for the Alaska trade lane, IDENTEC SOLUTIONS has formalized a partnership with Navis, the leader in marine terminal solutions, and together we are deploying our first joint project at the Georgia Port Authority in Savannah, Georgia.

Further enhancing the operational efficiency of Georgia Port Authority’s (GPA) Garden City Terminal gate and yard operations, Navis required RFID hardware that would provide identification and real-time visibility of Over-the-Road (OTR) carriers and in-yard vehicles while supporting automation of container handling processes within the yard. This required an RFID system that could provide accurate long-range, high-speed data capture while withstanding the harsh environment. As a result, IDENTEC SOLUTIONS' RFID technology will integrate with the Navis™ SPARCS terminal operating system (TOS) used at GPA through Navis’ Edge Manager middle ware and ultimately provide enhanced logistics asset visibility, control and optimization. This initial deployment will consist of 146 readers and 7750 tags.

Together with NAVIS we are working on a significant number of additional Port management opportunities in the United States, the Middle East and Asia. Expect additional announcements in the coming months.

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g  IDENTEC SOLUTIONS wins CAT Project from Wavetrend.

caterpillar

IDENTEC SOLUTIONS ILR Technology Accepted As Most Practical Solution
In February 2007 Caterpillar announced plans to develop a part tracking and replenishment system at its Decatur plant together with Wavetrend, one of our competitors. It has now become apparent that the only practical way to implement a robust and reliable solution in a timely way is by using IDENTEC SOLUTIONS’ award winning ILR technology.

Working as team, Caterpillar, Radiantwave and IDENTEC SOLUTIONS have already started to deploy the solution which will provide enhanced visibility and allow CAT to circumvent any supply chain problems before they reach their end customers.

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2. TRADE SHOWS

g    MASTERS at RFID.

Cebit
Cebit
Cebit

IDENTEC SOLUTIONS’ position as the global leader in active RFID-based solutions was never more apparent than at recent trade shows. Asked by one visitor if we were “giving away free stuff” because of the volume of people, the IDENTEC SOLUTIONS booth was by far the most sought after and visited at each trade show.

By exhibiting alongside industry partners, IDENTEC SOLUTIONS was able to offer a unique view of cutting-edge applications utilizing our patented and award winning technology. In addition to product demonstrations and industry updates, some booth visitors tapped in to their inner Tiger Woods and took the “IDENTEC SOLUTIONS Golf Challenge” at RFID World and RFID Journal Live. Contestants were challenged to “out drive” half the distance of our read range (250 meters) and qualify for the “IDENTEC SOLUTIONS Wireless Long-Range Challenge”. The top 10 qualifiers of each day came back to our booth for a grand shoot-out. Kai Figwer from LXE, Inc. was one of our grand prize winners and took home a Nike SasQuatch driver. Other winners walked away with high-end golf bags, duffle bags, golf balls, and more! IDENTEC SOLUTIONS’ executive team was hard at work closing an agreement while exhibiting at RFID World.

While there was a lot of excitement and fun at the booth, we were also able to reestablish a number of customer relationship, develop new ones and close new business as a result of these efforts.

Recent stops included: Cebit, Hannover; RFID World, Dallas; RFID World ASIA, Singapore; DoD RFID Summit, Washington.

If you haven’t yet had the chance to stop by, you can catch us at:

ICUEE
October 16 – 18, 2007
Louisville, KY

RFID Journal LIVE! Europe 2007
November 5 - 7, 2007
Mövenpick Hotel Amsterdam, The Netherlands

ID World Europe
November 26 – 28, 2007
Milan, Italy

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3. INSIDE NEWS

g   IDENTEC SOLUTIONS ads Technical Savvy to Management Team.

IDENTEC SOLUTIONS welcomes STEFAN SCHWIERS to our Corporate Office in Lustenau, Austria.
HorizonStefan Schwiers joined IDENTEC SOLUTIONS in early 2007 as Vice President, Technology ILR. Prior to joining IDENTEC SOLUTIONS, Mr. Schwiers held the position of CTO with the recently formed organization TagStone, based in Dubai. There he was instrumental in securing a large development contract with DHL which later garnered international interest and accolades. Further career highlights of Mr. Schwiers include a key role in the development of the first European Spectrum compliant UHF RFID printer while working at SATO, Germany, as the Technical Manager. He is also the recipient of an international patent in RFID Label Application. Mr. Schwiers holds a National Engineering degree in Germany.

As Vice President, Technology ILR, Mr. Schwiers will oversee product development for IDENTEC SOLUTIONS’ ILR technology.

Sepp Vogel has been appointed Vice President, Technology OIS and will use his considerable skill and experience heading the development team in Weinheim, Germany.

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g  IDENTEC SOLUTIONS Continues to Innovate.

Visibility
Visibility
IDENTEC SOLUTIONS Tests Beta-Version of Mobile RTLS Solution
In its continuing drive to maintain its leadership position in high value active RFID and to enhance its competitive position, IDENTEC SOLUTIONS has successfully tested its new mobile Real-Time-Location-System (RTLS).

Under development since mid 2006 the new system is the first practical and cost-effective system to help organizations manage hundreds to 100,000s of assets in an outdoor open yard. Using a vehicle-mount computer terminal outfitted with an ILR® RFID reader and GPS receiver, the system automatically, without any user interaction, locates tagged assets and detects their current latitude/longitude position in the yard. Utilizing our advanced positioning algorithms (patent pending), the Real-Time-Location-System (RTLS) is able to inform customers exactly where each tagged item currently resides in the yard - often to within a couple of meters. Every time a reader-equipped yard vehicle drives anywhere in the yard, the system automatically re-maps that section of the yard. Each time a yard vehicle passes through an area, the reported asset location accuracy improves.

Unlike the Wherenet RTLS system, this new solution is much easier to implement, is less complex and requires significantly less infrastructure – thereby making implementation much simpler and far more cost effective for customers.

This product is an important part of IDENTEC SOLUTIONS strategy in maintaining its leadership position as the premier active RFID technology provider. Additional products that have been released recently or are in pre-release testing include:

• ILR Visibility Suite – End-to-end asset management solution – currently in beta-trials at select customers.

• Mobile RTLS – first release version launched.

• RAND 18000-7 protocol based tags and readers. Initial DOD testing scheduled for June 2007.

Further products are under development and will be announced as they come on line.

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