))) The Gap Tests Texas Instruments RFID Smart Label Technology for Tracking Denim Clothing from the Factory to
Store Shelves

))) CHICAGO, IL (November 13, 2001)

Speaking at the Radio Frequency Identification (RFID) Summit at the Frontline Solutions conference, Neco Can, program director, The Gap, Inc. today told an audience that Texas Instruments Radio Frequency Identification (TI-RFid™) technology was used for item-level tracking of denim apparel during the company's three-month field test of RFID in Atlanta. Texas Instruments' Tag-it™ 13.56 MHz smart label system improved both customer service and supply chain efficiency by helping to quickly and easily locate individual items of clothing as they moved from the factory to the retail store.

The Gap experienced higher sales for RFID-tagged denim apparel compared with stores in the area not using RFID technology. Nearly 100% of all RFID-tagged merchandise in the store was available for purchase. As soon as a shipment was received, The Gap employees knew exactly what sizes and styles needed to go out on the sales floor and where the items needed to be placed. They were able to consolidate sizes and styles and better manage overall inventory. Using the RFID tracking system, the store avoided customers "walking the sale," or leaving the store without purchasing an item because it couldn't be found on the shelf, but was in store inventory.

Unlike other auto ID technologies, RFID allows multiple tags to be read simultaneously, and each item of clothing is tracked in the same manner, regardless of whether it is in a box coming into the warehouse, stored in a backroom, or folded in a stack on a shelf. The technology also eliminates human error and doesn't require line-of-sight to be read, so inventory management is simplified as items in stacks, boxes, or in a warehouse are quickly and easily located throughout the supply chain.

"The Gap has a history of introducing new trends to the retail market. The RFID technology it is testing operates at 13.56 MHz, which is accepted worldwide so it really puts this technology in position to expand to other retail applications globally," said Tres Wiley, strategy manager for TI-RFid™. "The most exciting result of this field test was the demonstrable increase in sales attributed to the used of RFID in item-level tagging. Of course, as RFID industry volumes increase, smart label costs will continue to come down and we'll see wider use of RFID in a variety of retail applications."