SOURCE: Advanced ID Corporation

August 22, 2006 09:15 ET

Advanced ID Corp. President and CEO Provides 'Presidents Message' to Employees, Customers, Shareholders and Investors

CALGARY, AB -- (MARKET WIRE) -- August 22, 2006 -- The Advanced ID Corporation (OTCBB: AIDO) 10Q for the period April 1 through June 30 has been filed and it is necessary to point out that the extraordinary loss exceeding $1,300,000 is due largely to incentive options offered to board members and other company executives at $.50 which created a non-cash cost according to GAAP rules and must be stated as non-cash compensation. This action was taken to compensate board members and company executives to conserve cash. Exclusive of the non-cash compensation issues, It should be noted that the operating loss for the quarter is in the same range as the same period last year.

I want to take this opportunity to provide information that goes beyond the reported results.

Because the company is moving forward in several markets we need to stay focused on our core competence and therefore we have created a new corporate Mission Statement. I want to announce it here for the first time in this release.

"Advanced ID Corporation is committed to excellence as it participates in the emerging, technology based, radio frequency identification, or RFID industry. The Company will focus on niche markets within the industry to establish significant market share within those markets.

Advanced ID will establish strong strategic partnerships for engineering, database systems, manufacturing and sales, rather then create large, employee based, organizations. Advanced ID has strong applications engineering resources within the company but will rely on global outsourcing in key product development areas.

Advanced ID will concentrate its product and market development in: the low frequency RFID companion pet market, the UHF RFID world wide tire tag business and RFID readers for general supply chain applications. The Company is a true multinational company and will serve its markets on a world wide scale.

Advanced ID Corporation is mindful of its obligation to its shareholders and the commitment to conduct its business with the highest levels of corporate integrity and employee honesty."

Beyond the challenge of living up to an excellence based Mission Statement, we have to continue our transition to a market driven company and fully exploit our business opportunities.

The company's three main lines of business, all RFID related, are:

Companion Animal Management -- our pet micro chipping business operating under our Advanced Pet ID subsidiary. We are teaming up with Pet Plan and PetLynx to provide a full service solution to the pet management business in Canada. The three companies are providing the framework for a Canadian National Pet Recovery Database with Advanced ID providing the ISO compliant, NCAC approved RFID implanted chip for all pets. Total market size is estimated at several million pets throughout Canada, with a realistic annual addressable market for Advanced ID of 200,000 micro chips. With an average micro chip price approaching ten dollars each, we forecast solid grow for the rest of 2006 and 2007.

Tire Tags and Readers -- our global tire tag product line for tire makers and other RFID solutions providers in the tire business. Our close partnership with Hana provides Advanced ID with the only RFID tire tag sold in the industry. With the Hana/Advanced ID partnership currently selling to both Goodyear and Michelin, we are clearly positioned to capture significant market share in the future. Today, we are entered into discussions with additional tire industry companies in twelve countries to sell tire tags and readers within their borders. These companies manufacture about 50 million truck and other high value tires a year and these are the tires that will contain RFID tags in the near future. We are engaged in a comprehensive 'market development strategy' to convince the global tire makers that the cost of putting our tire tag in their tires is more than offset by the value received from information stored on the tire tag. Our tire tag is built under license with Michelin and has been proven to work under normal operating conditions throughout the life of the tire. The total market for the tire tag industry for truck, bus, heavy equipment and other high line tires exceeds 150 million tires per year. Our addressable market, counting only the companies that we are already doing business with and those with whom we are negotiating, is at least 75 million tires per year. At an average per unit price per tag of approximately sixty cents (in very large quantities) this clearly becomes the area where Advanced ID must concentrate its sales efforts.

General Use RFID Readers -- our low cost, but feature rich answer to the industry's overpriced readers. We are developing a line of UHF readers that will transform the normal price point for a high power reader from $1500 to $750. We are developing a low power UHF reader that will sell for under $300 in quantity. Lastly we will announce within the next three months an LF reader for our Pet Management business that will retail for less than $100. We are establishing additional sales channels now and are committed to a leadership role in the general supply chain reader business, especially for harsh read environments. The total market for UHF RFID readers has been hampered by high prices throughout the industry and a reluctance to embrace RFID in general because it has been difficult to cost justify. However, Wal-Mart and others have changed the dynamics of the industry. At an aggressive price, the total market for UHF RFID readers world wide is several hundred thousand readers per year. Advanced ID is determined to be a leader in the high powered, waterproof reader segment at a price point around $750. We estimate our addressable market to be 30,000 readers, many in the tire business. The Advanced ID low powered UHF reader, priced at $300 or less, will be used in item level inventory control and we anticipate a target market of at least 50,000 readers per year.

In our Livestock tagging and tracing product line, we are continuing to work with governments and the private sector to offer our solutions. The response of governments around the world has not been proactive. However, we are not complacent and are presenting a superior solution in the food chain safety issue. We have teamed with two associated companies in the United States and will be presenting to the USDA our UHF RFID livestock solution later this year.

At the April 2006 Advanced ID Board of Directors meeting, Seymour Kazimirski, Chairman of the Board made it clear that we are committed to selling the products that we have developed and are narrowly focused on becoming a major factor in our three target businesses . At that Board meeting Dan Finch, President and CEO presented a detailed look at the lines of business with objectives through 2008.

At the conclusion of the presentation Finch said, "We look at the recent progress the Company has made in each of its product lines and we are excited about our future. We owe it to our employees, our shareholders and ourselves to create a solid plan and, even more importantly, to execute that plan. We can't always control the timing of important contracts, but if we are successful in providing the best product for the money in our target niche markets, the contracts will come."

About Advanced ID Corporation

Advanced ID Corporation is a complete solutions provider in the radio frequency identification (RFID) market. RFID provides a means for positive identification and trace back of animals or objects that have been identified with a microchip. It currently supplies product to over 3,000 organizations such as animal shelters, veterinarians, breeders, government agencies and fisheries with RFID devices tagged on over 850,000 animals.

Though initial RFID was based on low frequency; in 2004, after nearly three years of development, Advanced ID began commercializing its ultra high frequency DataTRAC™ tags, readers, and trace back management solutions. Advanced ID has been actively involved with government and industry projects establishing livestock identification and trace back solutions in Australia, China, Canada, Brazil, Argentina, Thailand, Taiwan and the United States. More recently Advanced ID has entered the Tire RFID industry and expects to maintain its leadership position in that market.

For further information visit Advanced ID Corporation at www.advancedidcorp.com

Safe Harbor Statement: Statements in this press release other than statements of historical fact, including statements regarding the company's plans, beliefs and estimate as to projections are "forward-looking statements." Such statements are subject to certain risks and uncertainties, including factors listed from time to time in the company's SEC filings, and actual results could differ materially from expected results. These forward-looking statements represent the company's judgment as of the date of this release. Advanced ID Corporation does not undertake to update, revise or correct any forward-looking statements.

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