Checkpoint Systems Partners With METRO Group

98.5%+ Read Rate Represents Milestone in European RFID Deployment

January 16, 2007 – Checkpoint Systems, Inc. (NYSE: CKP), a leading manufacturer and marketer of RF- and RFID-based solutions for identification, tracking, security and merchandising applications, today announced its involvement in a series of UHF RFID technology trials supervised by the European Telecommunications Standards Institute (ETSI) task group 34 (TG34). Conducted at one of METRO Group's Distribution Centres near Hamm, Germany, the Varena trials were designed to improve RFID tag read performance in high-density reader environments and to validate the robustness of the RFID portal dock door solution in preparation for Metro's UHF rollout expansion plans scheduled for 2007.

Utilizing equipment from numerous RFID suppliers in Europe and North America, Checkpoint served as a hardware integrator for the trials. In this capacity, Checkpoint helped with the design work for the hardware solution and procurement, configuration and installation of the 36 RFID-enabled dock door portals which were used to validate successful simultaneous operation of multiple dock doors using a 4-channel synchronized approach under the ETSI 302 208 standard.

Pallets containing 62 individually tagged cases largely containing RFID unfriendly materials (such as cans, liquids and metal lined items) were simultaneously transported at warehouse speeds through 36 adjacent loading dock doors. Some 4.5 million individual reads were recorded over the course of the trials.

Complying with the ETSI listen before talk (LBT) requirements, the tests achieved a 98.5%+ read rate simultaneously from multiple pallets as they were wheeled through the dock doors. "The results represent a significant milestone in European RFID operational deployment," said Dr. Gerd Wolfram, Managing Director of Metro's Information Technology Group. "Checkpoint Systems has been a partner in Metro's Future Store Initiative from an early stage and has worked closely with us specifically on solving the UHF technical challenges at the Metro Innovation Centre at Düsseldorf since early 2006." Dr. Wolfram added, "Our partnership enables us to leverage Checkpoint's infrastructure, commitment to RFID and extensive EAS expertise as we migrate to UHF RFID-based solutions. Together, we are working toward enhancing our customer's shopping experience, while at the same time, improving our supply chain efficiencies."

As a result of the successful trial, Checkpoint and Metro are now closely collaborating on the next stage planning for Metro's roll-out in 2007.

"Checkpoint Systems is very proud to support Metro's long-term, strategic investment in RFID," said George Off, CEO and Chairman of the Board of Checkpoint Systems, Inc. "The Varena trial clearly showcases the viability of the UHF RFID solution jointly developed at the Metro Innovation centre and demonstrates Checkpoint's strong commitment to its positioning as a major hardware integrator for the worldwide retail RFID sector. It is a good example of our new strategic emphasis on RFID solutions for our retail customers."

For more information about METRO Group, visit www.metrogroup.de.
For more information about Checkpoint Systems Inc., visit www.checkpointsystems.com.
For more information about ETSI, visit www.etsi.org.