))) Texas Instruments and SCS Corporation Announce Joint Development Agreement to Advance UHF RFID Technologies

Fast track to a new generation of RFID solutions

))) SAN DIEGO, CA (February 14, 2000)

Technology leaders Texas Instruments and SCS Corporation today announced they are teaming to design a UHF (868/915 MHz) radio frequency identification (RFID) technology. This joint development will be instrumental in advancing UHF RFID technologies.

The two companies will develop a core UHF technology to allow each to independently manufacture and market these derivative RFID tag and scanner products through their channel partners to the RFID end user market. Initial product introduction is expected late 2000. This new product platform leverages existing and emerging allowances in the global UHF bands to deliver breakthrough performance in passive read range.

Texas Instruments, a high-tech manufacturing giant with over 70 million RFID transponders sold, has partnered with SCS Corporation due to its proven technological expertise. SCS's Dura-label® 2.45GHz technology encompasses a superior anti-collision tag protocol, long passive tag read range, and low RFID tag prices that are already strengths in the market.

According to SCS president and CEO Jacob Jacobsson, "The key to this relationship is the ability to leverage SCS's technology know-how with Texas Instruments' manufacturing and marketing strengths. This new UHF band supports a longer reading passive RFID tag that will open new markets."

SCS and Texas Instruments believe this cooperation will have the combined strength to create a standard for passive RFID tags in the UHF band. Both companies strongly believe that the formation of RFID standards in the UHF band will greatly enhance open solutions for RFID end users. Together the two companies will promote a standards proposal to be submitted to the ISO SC 31 and ANSI as well as other standards organizations to harmonize industry standards in North America and Europe.

Texas Instruments entered the radio frequency identification market in 1991 with the worldwide introduction of the TI-RFid™ product line. Fusing together core competencies in advanced semiconductors, microelectronic packaging and computer system design, TI has low (134.2 kHz) and mid (13.56 MHz) frequency RFID products. The core competencies of SCS's products have been in the 2.45 GHz frequency range. The development of a UHF band product between SCS and Texas Instruments will enhance the product lines offered by both companies.

"Texas Instruments' manufacturing and marketing leadership in the RFID market, combined with SCS' technological capabilities, form the cooperative platform for this development," explained Dave Slinger, V.P. of Texas Instruments and worldwide business manager of
TI-RFid™. "This milestone agreement brings two respected names in the industry together to develop leading edge technology for emerging logistics applications while simultaneously creating world standards."

About SCS Corporation

Founded in 1992, SCS Corporation's mission is to bring practical, low-cost identification technology to the "real world". The company is based in San Diego, Calif., and its technology is protected by twelve patents with two additional patents pending. For more information, visit the company's Web site at www.scs-corp.com or contact SCS at (858) 485-9196; fax (858) 485-0561.