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IBM Licenses Clipped Tag RFID Technology to Marnlen RFiD

Privacy-Enabled Radio Frequency Identification Labels Now Available for Wide-Scale Deployment

HAWTHORNE, NY & MARKHAM, ON - 08 Nov 2006: IBM (NYSE: IBM) today announced it will license its acclaimed "Clipped Tag" technology to Marnlen RFiD, who will begin production of the tags and offer availability immediately. The Clipped Tag, developed at IBM's Watson Research Center, allows consumers to tear off the majority of an RFID tag's antenna, reducing the tag's read range to just a few inches, ensuring consumer privacy while maintaining the benefits of the technology, such as product authentication or recalls.

"IBM's Clipped Tag concept is an elegant way to promote the benefits of RFID while protecting privacy," said Andris Lauris, Vice President Business Development, Marnlen Management Ltd. "We're excited to be the first company in our industry to make the concept a reality."

Toronto-based Marnlen RFiD manufactures custom and standard RFID labels at its manufacturing facilities in Markham, Ontario where its high-speed RFID label converting equipment is in production.

Labels containing RFID tags are being used in a wide range of industries to streamline shipping and inventory systems, track valuable parts and equipment, and to authenticate products. Although most RFID use is at the case and pallet level in warehouses and manufacturing sites, some companies are starting to use the technology on single items. An example of this is in the pharmaceutical industry, where RFID tags can help protect consumers from counterfeit drugs.

Marnlen RFiD and IBM's Paul Moskowitz, one of the tag's inventors, have worked together to demonstrate the feasibility of smart labels containing Clipped Tags since July. Today's announcement is of the first actual manufacturing of the tags, a technology which has been applauded by consumer protection organizations as a simple, practical way to address privacy concerns.

"The Clipped Tag puts privacy protection into the hands of the consumer, as it gives the consumer a visual confirmation of the tag's modification," said IBM's Dr. Moskowitz. "At IBM, we believe that successful commerce depends on trust."

Made in IBM Labs

IBM is dedicated to driving the development of a wide range of emerging technologies, including that of advanced telematics -- sensors and actuators, RFID and other networked devices -- that link organizations and people for economic growth, improved healthcare and education, and enhanced security and safety.

These technologies are not created in a vacuum by IBM alone. They are increasingly the result of collaborative innovation through IBM's research and development engagements with its customers, business partners, universities and other parties. Bringing IBM's R&D-prized resources closer to its customers worldwide, as with the Clipped Tag, is a key goal for IBM.

About IBM

For more information on IBM RFID solutions and software please visit www.ibm.com/solutions/rfid

About Marnlen RFiD

Marnlen RFiD designs, manufactures and supplies standard and custom RFiD labels -- along with the application engineering support to ensure customer satisfaction, even in the harshest operating environments. Marnlen RFiD is a division of Marnlen Management Ltd., a privately owned corporation established in 1977; with a state-of-the-art 250,000 square foot ISO 9001:2000 certified production facilities in Toronto, Canada. Marnlen RFiD focuses on the North American supply chain, CPG, Pharma and Retail markets. To learn more, contact us at 866-729-RFID (7343) or see our website at www.marnlen.com.

Contact(s) information

Kelly Sims
IBM Media Relations
917-472-3456
Kelly.sims@us.ibm.com

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