METRO Group, Royal Philips and Intermec Demonstrate Generation 2 RFID System



Demonstration believed to be first in the industry

EVERETT, Wash-/8 April, 2005 - Wi-Fi Technology Forum/- The METRO Group, one of the world?s largest retailers, and RFID pioneers Royal Philips Electronics and Intermec Technologies Corp. announced the industry?s first demonstration of an EPC Generation 2 RFID (radio frequency identification) system at METRO Group?s RFID Innovation Center in Neuss, Germany. During the demonstration, Intermec Intellitag? Gen 2 smart labels containing Philips Generation 2 RFID chips were read by an RFID-enabled Intermec IF5 reader.

The next step is to equip Metro?s RFID Innovation Center with Generation 2 technology to test system performance. The companies also plan to update Metro?s Future Store supply chain with Gen 2 capabilities to test the technology under real-life conditions.

By the end of 2005, more than 100 METRO Group suppliers are expected to migrate to Generation 2 RFID technology for improved asset tracking and inventory control. METRO Group, which has 2,300 stores in 30 countries around the world, launched its first RFID pilot project in November 2004. To date more than 100,000 pallets have been read using Metro?s current RFID system.

?Generation 2 RFID is here now,? said Dr. Gerd Wolfram, executive project manager of the METRO Group Future Store Initiative. ?This demonstration meets a key METRO Group objective: we wanted to ensure that our existing RFID systems would seamlessly migrate forward to the ISO-based Gen 2 solution, and this was the first time to demonstrate that in the field.?

?This real-world demonstration of a Generation 2 RFID system confirms that companies can now realize ROI benefits from RFID,? said Intermec President Tom Miller. ?Customers can now move forward with technology that fully addresses their application requirements without having to manage costly and complicated mixed-protocol environments.?

"As a leading supplier of RFID technology, Philips partners with other industry leaders in order to allow us to be early to market with our innovations. This announcement is further proof of that strategy,? said Jan-Willem Reynaerts, general manager for RFID at Philips Semiconductors.

The system is the latest step in the successful implementation of Philips RFID chips and Intermec RFID equipment at METRO Group?s RFID Innovation Center, its Future Store and at several of its distribution centers. The company?s largest and busiest distribution center, located in Unna, Germany, is equipped with Intermec IF5 Intelligent RFID readers and RFID tags powered by Philips chips and Intermec Intellitag technology.

Areas of profitability improvement from supply chain RFID include reduced shrink and loss of inventory, reduced out-of-stock conditions at store level, more efficient transportation and logistics, reduced inventory and lower costs associated with receiving.

RFID is a complement to industry?s current bar code-based tracking systems, allowing companies to automatically track inventory throughout an entire supply chain. RFID automatic data collection typically does not require line of sight or manual scanning as do most bar code-based systems. Intermec Intellitag Gen 2 RFID offers feature-rich UHF Generation 2 technology with user-requested capabilities found nowhere else.


About METRO Group
The METRO Group is one of the world?s largest wholesaling and retailing groups. With its powerful brands, the METRO Group operates successfully in 30 different countries around the world - at almost 2,300 locations with more than 250,000 employees. The METRO Group?s six sales divisions operate independently on the market with their own specific sales concepts: Metro/Makro Cash & Carry ? the world?s market leader in self-service wholesaling, Real hypermarkets, Extra supermarkets, Media Markt and Saturn - the leading consumer electronics centers in Europe, Praktiker home improvement and DIY centers, and the department stores of Galeria Kaufhof. More information at http://www.metrogroup.de and http://www.future-store.org.

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world?s biggest electronics companies and Europe?s largest, with sales of EUR 30.3 billion in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,500 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at http://www.semiconductors.philips.com.

About Intermec
Intermec Technologies Corp., a UNOVA Inc. (NYSE:UNA) company, develops, manufactures and integrates technologies that identify, track and manage supply chain assets. Core technologies include, mobile computing systems, bar code printers, label media and Intellitag? RFID The company?s products and services are used by customers in many industries worldwide to improve the productivity, quality and responsiveness of business operations. For more information, visit http://www.intermec.com or call 800-347-2636. To learn more about UNOVA, visit http://www.unova.com.