August 2007

1. FOCUS

IDENTEC SOLUTIONS in the News

Siemens Generates Power with ILR

IDENTEC SOLUTIONS ISO 18000-7 Passes First DOD Hurdle

IDENTEC SOLUTIONS Opens Asia Office

Sealed and Delivered


2. TRADE SHOWS

IDENTEC SOLUTIONS will be coming to a city near you.


 

 

g   Message from the CEO.
Gerhard
So many exciting developments have taken place over the past few months, it is nice to be able to take this opportunity to pause and share them with our customers and partners.

IDENTEC SOLUTIONS continues to successfully deploy its ILR and OIS systems into an ever increasing market. Recent new wins include BMW, the Port of Dubai and Siemens Power Generation among others.

It is hard to believe that it's been only one year since we opened our Addison, Texas office. The opening of this office has allowed us to better serve our existing US customers as well as win several major new long-term accounts such as Navis and Horizon. Revenues from the US are already triple of those in 2006, even though a number of major strategic challenges are still under development. Last month, we achieved another milestone in our goal of becoming a second source for the US Department of Defense (DOD) by passing the first round of DOD technical tests with flying colors.

On the eve of this anniversary we are pleased to announce the opening of our Hong Kong office to further enforce our position as the world’s leading provider of active RFID solutions and services. We welcome aboard Kenneth Lee who will spearhead our Asian operations. Mr. Lee's well known reputation for business development in the high technology sector makes him the ideal addition to the IDENTEC SOLUTIONS team.

Our technology department has been busy as we further enhance our award winning portfolio with new solutions. Recent announcements include the IDENTEC SOLUTIONS eSeal and ILR Mobile Location System. Stay tuned for even more innovative technology announcements in the near future.

In addition, our effort to further develop our brand is paying off. Over the past three months there has been an unprecedented amount of media coverage including a number of feature articles written about our technology and its deployment. See our "In the News" section for some more highlights.

In closing, I would like to thank the IDENTEC SOLUTIONS team for their ongoing effort and hard work for another successful quarter.

A thank you as well to our valued customers and esteemed technology partners - it's because of you that IDENTEC SOLUTIONS remains an industry leader in the active RFID market.

Best regards,

Gerhard Schedler
Vorstand/CEO

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1. FOCUS

g  IDENTEC SOLUTIONS in the News.

Over the past 6 months we have significantly increased our marketing in an effort to enhance IDENTEC SOLUTIONS profile in the marketplace - and to ensure that we are top of mind with potential customers and partners. Strategically there is a great deal of work to do, however our efforts are already realizing a substantial return as we enjoy an already elevated profile.

Following are some of the publications we have been featured in the past few months.

Alaska Business Monthly (July 2007)
Integrated Solutions (June 2007)
RFID Update (June 2007)
Logistics Online (June 2007)
Trucking News (June 2007)
Industry Week (June 2007)
RFID Journal (June 2007)
KRON - San Francisco (July 2007)
RBC Dain Rauscher Inc. (July 2007)
Bizjournals.com, Inc. (July 2007)
Dallas Business Journal (July 2007)
Los Angeles Times (July 2007)
NBC6.com (July 2007)
Yahoo! Finance (July 2007)
Yahoo! UK and Ireland (July 2007)
Miami Today (July 2007)
Dallas Morning News (July 2007)

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g  Siemens Generates Power with ILR.

HorizonSiemens Power Generation (http://www.powergeneration.siemens.com) is one of the premier companies in the international power generation sector, providing leading-edge power and energy solutions. It develops and builds fossil fuel power plants and power-generating components, as well as alternative energy sources such as wind turbines and turbines for use as mechanical drives and compressors for industrial applications. Recently, this US based subsidiary of Siemens AG selected IDENTEC SOLUTIONS ILR products together with our newly released Mobile Real Time Location Software (see May 2007 Newsletter) as its corporate standard for tracking and monitoring shipments to the field.

Extensive technical tests were carried out at a number of Siemens facilities to evaluate both IDENTEC SOLUTIONS products as well as other RFID and WLAN based systems. Not surprisingly, IDENTEC SOLUTIONS' ILR System outperformed its competitors with its long read range capability and high accuracy rate in harsh environments, and was ultimately able to satisfy all of Siemens requirements.

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g  IDENTEC SOLUTIONS ISO 18000-7 Passes First DOD Hurdle.

Since the beginning of this year the US sales team and our Engineering team in Austria have been hard at work pursuing our goal of becoming a second source for the United States Department of Defense (DOD).

Last month, the first DOD tests of IDENTEC SOLUTIONS 18000-7 compliant technology have been successfully completed. IDENTEC SOLUTIONS tags integrated with other 18000-7 readers and our reader's successfully communicated with other 18000-7 tags. Passing this initial technical review is a major milestone on the road to winning this project.

The IDENTEC SOLUTIONS technology team really went above and beyond, putting together a robust demonstration in an incredibly short period of time.

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g  IDENTEC SOLUTIONS Opens Asia Office.
caterpillar

As part of IDENTEC SOLUTIONS' strategic plan to enhance its position as global market leader in active RFID solutions and to increase customer and partner support on all continents, our new Asia office was recently opened.

Located in the prestigious ING Tower, the Hong Kong base will allow IDENTEC SOLUTIONS to service its current customers and projects in the region, and to provide a springboard for further entry into the rapidly growing Asia market. The Chinese market is growing exponentially and already consumes more passive RFID than any other country and is currently the fastest growing active RFID market.

The Hong Kong office will be lead by Mr. Kenneth Lee. Mr. Lee's reputation as a business leader in the high technology industry spans over three decades. He held senior management positions at IBM, Motorola, Sun Microsystems, Scient, IconMedia Lab, and HelloAsia. As one of the founding members of the IBM Consulting Group in Asia Pacific, he helped build the IBM Consulting business in Asia, from conception through to a profitable business in a short three years. Mr. Lee's efforts at IBM resulted in the strategic repositioning of IBM from a product oriented organization to the current service company it is today.

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g  Sealed and Delivered.

caterpillarAs part of its commitment to open standards, as well as its continued push into port management and container tracking markets, IDENTEC SOLUTIONS has secured the license to market the new ISO18185 world standard for electronic seal systems.

In collaboration with IDENTEC SOLUTIONS technology partner Savi Technology, a Lockheed Martin Company (NYSE: LMT), the eSeal is the accepted world standard for electronic seal protocol. Already a recognized leader in active RFID asset tracking based solutions specifically geared towards the container and logistics based industries, securing the license to offer the most reliable and effective eSeal on the market was a natural step for the technology of IDENTEC SOLUTIONS.

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2. TRADE SHOWS

g   IDENTEC SOLUTIONS will be coming to a city near you.

CebitFollowing is a list of Trade Shows where we would be pleased to have you stop by and visit. For a complete list refer to our website under "Events".

RFID India Expo 2007
13-15 September, 2007
Pragati Maidan, New Delhi, India

RFID India Expo 2007, the 4th International Conference and Exhibition of RFID technologies and applications provides an effective and common Forum to the vendors, technologists, professionals and users to RFID.

Visit us at booth no. 1002!

RFID Smart Labels Europe 2007
18-19 September, 2007
Cambridge UK

The market for RFID continues to surge forward, with investments, acquisitions and orders at record levels. The premier European IDTechEx conference RFID Europe, on the 18-19 September in Cambridge UK, will air all these aspects.

Visit us at booth no. 20!
For more information please visit: http://rfid.idtechex.com/rfideurope07/en/index.asp

GLC Global Leadership Conference
October 12-15, 2007
The Greenbrier, West Virginia

The SAE Detroit Section has held its "Greenbrier" meeting annually since 1950. Over time, it evolved into "the place to be" every year in mid-October, and provided a unique forum for American auto and supplier companies to meet. However, consolidation, globalization, and dramatic shifts in the responsibilities between OEM and supplier companies called for revitalization of this important industry event. Thus, "SAE Greenbrier" has evolved into the Global Leadership Conference (GLC) to reflect the breadth and depth of the global automotive industry and its supplier community.

ICUEE 2007, THE DEMO EXPO
October 16-18, 2007
Louisville, KY USA / Kentucky Exposition Center

ICUEE, the International Construction & Utility Equipment Exposition, is the premier international demonstration exposition and education resource for the construction and utility industries, focusing on the following sectors: Electric, Phone and Cable, Sewer and Water, Gas, General Construction, Landscaping and Public Works.

Tekniska Mässan
October 16-19, 2007
Stockholm, Sweden

The Scandinavian Technical Fair enables you to meet industrial decision makers. At the Scandinavian Technical Fair, you will be meeting a larger number of decision makers than at any other industrial fair in the Nordic countries.

Visit us at booth no. A 36:17.

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