))) Texas Instruments Radio Frequency ID (RFID) System, Tag-it™, Completes Successful Parcel Shipping Field Trial

))) DALLAS, TX (February 25, 1999)

The world of overnight and express parcel shipping took one giant step into the future with the successful completion of Deutscher Paket Dienst's (DPD - English translation: Direct Parcel Distribution), field trials of Radio Frequency Identification (RFID) smart labels.

The field trials, held at DPD's depot in Kesseldorf, Germany, consisted of some 5,000 "smart" parcel labels embedded with
Texas Instruments new Tag-it™ RFID technology. The parcels were accurately read while passing through a 1 meter x 1 meter tunnel mounted around a conveyor belt traveling at speeds up to 2.8 meters per second, which is the normal speed used for barcode scanning.

Smart labels are ultra-thin RF identification chips that are laminated between paper to make one-use labels, tickets or tags. These labels carry a unique ID code that is used to automatically tag, sort and route parcels, far faster and more reliably than manual or bar code systems that require a clear line of sight. Smart labels can also be updated on the fly, adding new data such as revised destinations or customs clearance information.

"Since smart labels can be read in random orientation, as well as in groups, they do not need special handling, like a barcode label would," states Horst Mollik, Texas Instruments sales manager in Germany. "Cutting down on the manual handling required of the parcel will dramatically cut operational costs and reduce data entry errors."

"We know what can be achieved with this technology and how it can benefit DPD and our customers," adds Peter Hoffmann, spokesman for DPD management. "As soon as some hurdles are overcome, such as standardization, we will be able to deploy smart labels on a large scale."

Texas Instruments and Philips Semiconductors recently submitted a proposal for a common communications protocol standard for smart labels to a working group of the ISO (International Standards Organization). "The proposal has been well received by the ISO, and is in the process of being adopted," reports Mollik.

Texas Instruments has also been working with British Airways since last year on testing and evaluation of RFID technology for baggage handling and sorting applications. British Airways is openly sharing this test data with other airlines and standards groups worldwide in an effort to accelerate the standardization and adoption of RFID-based handling and passenger matching systems internationally.

TI's Tag-it™ smart labels are based on its TI-RFid™ RFID technology that over the past decade have been deployed in more than 50 million tags world-wide. TIRIS applications include automotive anti-theft systems for Ford and Toyota, Mobil Oil's successful Speedpass™ automatic payment systems, and a host of security, access and automatic data capture systems worldwide.