HKIA Marks the First Major Commercial Implementation of

Passive UHF RFID Gen 2 Tags for Baggage Handling

April 17, 2008, Las Vegas, Nevada - Alien Technology, a leader in Radio Frequency Identification (RFID) Ultra High Frequency (UHF) products and services, and George Schmitt & Co., one of the largest producers of RFID enabled labels, today announced that George Schmitt & Co. was awarded the contract for RFID-enabled baggage handling at Hong Kong International Airport (HKIA) using Alienīs Squiggle(r) tags. George Everhart, CEO of Alien(r), delivered the news during his keynote address at the RFID Journal Live convention in Las Vegas, Nevada.

"With the leadership of Hong Kong International Airport, we were able to provide a smooth transition from barcode to RFID baggage tagging. Through implementation of the industry standard Gen 2 tag using Alienīs IC and inlay for our HKIA baggage tag," said Bill Gunther, president of George Schmitt & Co, "HKIA is showing the world that RFID benefits airlines and airport customers alike."

Hong Kong International Airport (IATA: HKG, ICAO: VHHH) is the regional and international aviation centre that won several notable international "Best Airport" awards. HKIA operates twenty-four hours a day, and is one of the worldīs busiest airports in terms of international passenger and cargo movement. In 2007, HKIA handled 47.8 million passengers and 3.7 million tons of cargo with the base airlines of Cathay Pacific, Dragonair, Hong Kong Express Airways, Hong Kong Airlines and Air Hong Kong.

"We are very happy with the 21" RFID baggage tag and the 2" x 4" RFID transfer labels we are receiving from George Schmitt & Co. The improved read rates have had a positive impact on the baggage handling process," said Mark Turner, assistant general terminal business manager of Airport Authority of Hong Kong.

According to the International Air Transport Association (IATA), RFID helps improve both airport logistics management and the handling of all baggage. Use of RFID in baggage handling may generate US$760 million per year in industry savings, and reduce the current number of 20 pieces of mishandled baggage per 1000 passengers each year, due to improved read rates of baggage using RFID as compared to barcode. For more information, go to http://www.iata.org

"Alien is pleased to work with George Schmitt & Co to RFID-enable baggage handling at Hong Kong International Airport" said George Everhart, CEO of Alien Technology. "The two companies are working well together, and we believe that successful implementations such as this only serve to lay the groundwork for other airports to follow HKIAīs

lead."

About George Schmitt & Co,Inc.

George Schmitt & Co., Inc. is a privately owned 134 year old vertically integrated graphic arts company headquartered in Guilford, CT with facilities in Guilford, CT, Branford, CT, Richmond, VA, Melbourne, FL and Leixlip, Ireland. George Schmitt & Coīs anti-counterfeiting

portfolio enables brand owners to have a cost effective layered security solution. As a security solution provider and security converter, Schmitt offers overt and covert features, a secure supply chain, project management services and often includes RFID for an integrated security label. George Schmitt & Co. is a world leader for customized RFID

applications utilizing their proprietary testing processes. George Schmitt services a variety of industries including Pharma and Aviation and is one of the largest producers of RFID enabled labels.

tags