Metro Group and Checkpoint System Expand Simple Label Cargo RFID Program

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Checkpoint System (NYSE: CKP), a major manufacturer and seller of anti-theft technology for retailers, announced today that it will participate in the Metro Group’s “Tag It Easy!” In the planned expansion phase, another 70 Chinese and Vietnamese consumer goods suppliers will use radio frequency identification (RFID) tags on goods shipped to Metro Group’s German plant. Metro Group has held a briefing for suppliers in Hong Kong on November 9.

“Tag It Easy!” is part of Metro Group’s “Advanced Logistics Asia” (ALA) program. Through this plan, Metro Group and Asian suppliers work together to promote the use of radio frequency identification to track products in the supply chain. Due to the limited technical capabilities of many suppliers in the Asian region, Metro Group launched the “Tag It Easy!” pilot program to assist them in using RFID technology in their operations. Through the cooperation with Checkpoint System, Metro Group provides pre-printed RFID tags for suppliers in the region. Suppliers can participate in the project with only a small amount of technical investment.

Dr. Gerd Wolfram, Managing Director of the Information Technology Department of Metro Group, said: “Our’Tag It Easy!’ RFID solution is a major breakthrough, showing that the RFID solution can benefit both suppliers and retailers.”

Among the suppliers that Metro Group has worked closely with in the past, according to geographical locations and product types, they have selected suppliers to participate in this plan to ensure that they include manufacturers of different products.

The RFID tag provided by Checkpoint stores the serial shipping container code (SSCC). In the supply chain from Hong Kong to Enna, Germany, readers are installed at different locations to read the SSCC data on the label. Metro Group can receive an electronic delivery note showing the contents of the container in advance before the goods arrive. Suppliers can also be issued with automatic delivery certificates and order RFID tags through Metro Link, the company’s global supplier platform.

With the real-time information provided by RFID, Metro Group can eliminate the need for manual calculation of export containers. The efficiency of the group’s supply chain can be improved to reduce stock-outs in retail stores, thereby improving the customer’s shopping experience. On the supplier side, they have also benefited from improved delivery certificates and shipping data, enabling them to position themselves as reliable business partners in the highly competitive consumer goods market.

In this plan, Metro Group will uniformly use UHF EPC Gen 2 tags. Up to now, the reading rate has reached Metro Group’s expected target in the early stage of the plan.

The first phase of the plan began in May, with a total of 30 Chinese suppliers participating. The second phase will begin in early November, and it is expected that the first batch of labeled goods will be shipped in December. Metro Group will conduct a three-month evaluation to study areas for improvement.

George Off, Chairman and CEO of Checkpoint Systems, pointed out: “Metro Group will continue to lead the development of RFID technology in the supply chain. The success of’Tag It Easy!’ and the second phase of the expansion plan prove that Metro Group is committed to development. Technology, and through RFID, improve the transparency of the supply chain and improve customer service. We look forward to maintaining cooperation with Metro Group and continue to extend the RFID program to the rest of its supply chain.”

About METRO Group

Metro Group is one of the most important international retailers in the world. In 2006, the group’s turnover reached 60 billion euros. The group employs 270,000 employees and has more than 2,400 branches in 30 countries around the world. The business operations are mainly based on various independently operated brands, including the leaders in the cash-and-carry and wholesale industries, the METRO/Makro Cash & Carry company (METRO/Makro Cash & Carry), the Real hypermarket and the Extra supermarket, and the leader in European consumerism Media Markt and Saturn in the electronic market, and Galeria Kaufhof department store.

For more information, please visit Metro Group website http://www.metrogroup.de .

About Checkpoint Systems Inc.

Checkpoint Systems, Inc. is a major manufacturer of retail loss prevention management solutions. The company’s global team provides continuous innovation in radio frequency (RF) technology, develops more loss-proof products and CheckNet label solutions to help retailers and their suppliers prevent theft, increase inventory transparency, and provide consumers with more stability Supply of goods. At present, Checkpoint has installed more than 1 million sets of radio frequency equipment for retailers and provided safety protection for 100 billion products. Checkpoint’s solution can effectively reduce costs, bring more profits to retailers in the fast-developing retail market, and provide their consumers with a better shopping experience. Checkpoint is listed on the New York Stock Exchange (NYSE: CKP), has offices around the world, and employs 3,200 people worldwide.

For more information, please visit Checkpoint System website http://www.checkpointasiapac.com .

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