Tesco Selects OAT for Enterprise-Wide RFID Framework Solution

OAT Foundation Suite Will Power Enterprise-Wide RFID Infrastructure for Leading European Retailer

BALTIMORE, EPCglobal US Conference 2004, Sept. 28, 2004 – OATSystems, Inc., the recognized RFID framework leader, today announced that Tesco PLC, the United Kingdom’s leading supermarket, will standardize on the OAT Foundation Suite for its enterprise-wide RFID (radio-frequency identification) initiatives. OAT’s flagship platform will power Tesco’s RFID infrastructure across its network of more than 2,000 locations. This decision marks the first time any of the retailers leading the adoption of RFID technology have standardized on a single enterprise-wide RFID framework.

Tesco’s initial roll out will focus on tracking high-value goods throughout its supply chain. Tesco selected OAT Foundation Suite because it required an industrial-strength platform to power its RFID infrastructure as the company transitions RFID into production and expands its deployment across thousands of locations.

Colin Cobain, Tesco IT Director, said:

“What customers want to know when they shop at Tesco, is that the items they want to buy are available and on the shelves. By extending our use of radiobarcodes in our Secure Supply Chain initiative, we will be able to improve on-shelf availability while reducing shrinkage. We will start with using radiobarcodes on high value goods and plan to expand our roll-out across our entire supply chain over the next few years.

“OAT has superb expertise and proven RFID technology, and are able provide the scalable RFID framework which is important to us in rolling out our Secure Supply Chain initiative throughout our international business. This will lead to a more efficient supply chain, greater accuracy of orders and deliveries and even though this trial does not involve customers, they will find improved availability of products in our stores as a result of this initiative.”

The OAT Foundation Suite is the industry’s first RFID framework, a complete solution enabling businesses to gain real-time visibility of inventory and goods movement across an enterprise’s extended supply chain. The OAT Foundation Suite is a set of pre-integrated products for capturing and integrating RFID data while providing corporate IT with centralized control of its RFID network across disparate locations.

OAT recently opened an office in the UK to enhance its global capabilities and meet customer and market demands for RFID solutions. Prasad Putta, Co-Founder of OATSystems, noted, “Tesco’s decision to standardize on the OAT Foundation Suite underscores the company’s commitment to deploy RFID across its supply chain. As such, it marks an important milestone for the industry and continues OAT’s pattern of standard-setting, industry ‘firsts.’ We are thrilled that Tesco has selected OAT to work with them on this exciting initiative.”

Tesco is the latest addition to OAT’s impressive roster of customers, including HP and Gillette.

About OAT

OATSystems, Inc. is the recognized RFID framework leader with software that empowers businesses to achieve competitive advantage from radio-frequency identification (RFID). As pioneers in the development of RFID technology, OAT has been setting the standard in RFID for over half a decade and is responsible for industry firsts that include the largest scale and largest scope of deployments, as well as the most innovative approaches to providing enterprise-wide RFID solutions. OAT’s multinational client base, which includes companies such as Hewlett-Packard and Gillette, consists of over 30 customers in retail, CPG, consumer electronics, manufacturing, life sciences, aerospace and defense. Headquartered in Waltham, MA, OAT has offices in Chicago, London and Bangalore and is on the Web at www.oatsystems.com.