Dramatic RFID Growth For Blue Vector In 2006

Customer industries now span pharmaceuticals, consumer goods, grocery, and third-party logistics firms

January 23, 2007 – Blue Vector Systems, a leading manufacturer of sensor networking appliances, today announced record revenue for 2006. Entry into new markets and continued expansion of existing customer deployments were the primary drivers of growth for the year. The pharmaceutical industry was an especially strong source of growth for the company due to intensifying regulatory pressure for item level tracking of prescription drugs throughout the pharmaceutical supply chain. During the year, Blue Vector deployed cost-effective RFID tracking solutions to industry leaders such as McKesson and Rite Aid. Customers benefit from Blue Vector's compatibility with the wide range of RFID standards that are in current use in today?s pharmaceutical industry.

Nancy Anderson, CEO of Blue Vector, is pleased with the company's achievements in 2006. "We are especially happy to see customers expanding their Blue Vector deployments to additional sites. Even within facilities, we have seen deployments start with shipping docks, move to include receiving, and then spread into the heart of the production process." Anderson goes on to say, "Our chief challenges during this phase of triple digit growth are building out our team and making absolutely sure that we exceed our customers' expectations. We need to do a great job on the first handful of sites for a company, so that we can earn the privilege of helping them automate the rest of their operations."

Part of Blue Vector's 2007 strategy to handle the increasing demand and widening scope of its deployments includes an intensified focus on partnerships. The company already has strong partnerships and joint customer deployments with technology providers such as Symbol (now part of Motorola) and Intelleflex (a provider of semi-active RFID tags and readers). Blue Vector is in the process of developing additional key partnerships with service firms that can provide the expertise and capacity to deploy RFID systems in targeted vertical markets. The Company recently announced such a relationship with Nortel where Blue Vector's sensor networking appliances are used as part of Nortel's municipal wireless mesh initiative.

For more information about Blue Vector Systems, visit www.bluevector.com.