SOURCE: Xterprise Incorporated

October 15, 2007 14:32 ET

Xterprise Says Recent Announcements by Wal-Mart and Metro-Group Show More Demand for XARM Solutions Coming

DALLAS, TX--(Marketwire - October 15, 2007) - Xterprise Incorporated, a leading global provider of RFID-enabled High-Definition Supply Chain™ solutions and a Microsoft Gold Certified Partner, announced today that despite recent stories to the contrary, suppliers to Wal-Mart and Germany's Metro-Group must recognize that both organizations are serious about expanding their RFID-enabled supply chain initiatives. Just this week Wal-Mart and Metro-Group were in the news outlining new supplier requirements regarding RFID source tagging on inbound pallets and cases.

"Wal-Mart, and Sam's Club push RFID farther along... Wal-Mart has begun asking its suppliers to tag cases and pallets of products to be featured in upcoming promotions." 10/5/2007

"Suppliers to Germany-based Metro Group will pay a financial penalty if they decide not to ship pallets that are tagged with radio frequency identification (RFID) technology." 10/10/2007

These recent announcements indicate the seriousness of these two giant retailers in making their supply chains more efficient, and the pressure is on their suppliers to comply once again.

"Our customers are currently shipping over 10 Million tags into Wal-Mart each year making the Xterprise Automated RFID Module (XARM) family of solutions the leading source tagging application in the market. Our off-the-shelf, turnkey XARM solutions range from manual slap and ship cart to automated packing and in-line production applications," said Dean Frew, Xterprise president and CEO. "Our solutions are tried and true, with many of our customers heading into their fourth year of production. We combine the tagging with our sophisticated AnalytiX application which matches physical reads with Retail-Link data offering the supplier a deeper understanding of promotional effectiveness and sales performance."

Carolyn Walton, Wal-Mart's VP of information technology, announced last week at the EPC expo in Chicago, IL three new RFID initiatives focused on using the technology to improve specific business processes within the company.

The first initiative will require 700 suppliers to attach an EPC Gen 2 RFID tag to each pallet of goods shipped to a Sam's Club distribution center in DeSoto, Texas. The distribution center has attached location tags to its shelving and will track pallets using interrogators mounted on forklifts, associating each pallet tag's Electronic Product Code (EPC) number with the nearest location tag.

With the second initiative, designed to increase the effectiveness of product promotions, Wal-Mart wants suppliers to place EPC Gen 2 tags on cases and pallets of products to be promoted. RFID tags are being embedded into its store flooring, at "hot spots" such as the ends of aisles. The tagged pallets of items being promoted will be placed in the hot spots, and associates with RFID-enabled handheld computers will read the floor and pallet tags. The system alerts the worker if items being promoted are missing from the floor, in the wrong hot spot or still on the floor after a promotion's conclusion.

Wal-Mart's third announced initiative will determine if the retailer can increase sales across an entire product category by having all appropriate suppliers tag cases and pallets of products sent to pilot locations.

"These new initiatives are a clear signal the retailer is ramping up its use of RFID, not retreating from it," Frew said. "We see Wal-Mart and Metro-Group continuing to be catalysts for deepening RFID adoption across the major retail categories, and we are ready with rapidly deployable, low total cost of ownership solutions built on the Microsoft BizTalk RFID platform."

ABOUT XTERPRISE

Xterprise Incorporated was founded in 2002 as a provider of RFID (Radio Frequency Identification) applications. Today, Xterprise applications and solutions combine Microsoft technology, continuous improvement and lean supply chain expertise, enterprise supply chain systems integration along with RFID technology to deliver previously unachievable levels of visibility, assurance, accuracy, process improvement and value to clients. The company has pioneered RFID Service Oriented Architecture (SOA) applications and RFID data analytics throughout its deployments in North America, Asia and Europe. The Xterprise solutions suite includes XAM™, XAM-RTI™, XARM™, TraX™ and AnalytiX™. Since its founding, the company has grown rapidly and continues to deliver exceptional returns for its shareholders with a proven business model. Xterprise serves leading global companies that include Siemens VDO (Continental AG), Dairy Fresh, Dell, iGPS, J&J, ExxonMobil, L'Oreal, Schoeller Arca, Timco, TNT Express, and others. The Xterprise global headquarters is located in Carrollton, Texas (Dallas/Fort Worth) and its European office is located in Beverley, UK. For additional information call Xterprise at +1-972-690-9460 US, email infoUS@xterprise.com or visit www.xterprise.com.

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