IPICO Inc.
TSX VENTURE : RFD

IPICO Inc.

November 22, 2006 17:47 ET

CORRECTION FROM SOURCE: IPICO To Deploy SmartCore Paper Reel Tracking Solution Within Mondi

IPICO to roll out new SmartCore tracking solution to provide visibility and improve efficiency in the global paper market

BURLINGTON, ONTARIO--(CCNMatthews - Nov. 22, 2006) - In the release issued at 3:15PM ET Nov. 22, 2006 changes have been made. Please note the changes made are: the addition of a "BACKGROUND" section further defining the relevance of the announcement, as well as the About IPICO boilerplate. The complete and corrected release follows.

IPICO Inc. (TSX VENTURE:RFD) -

In the paper industry, there is a strong need for an identification system to carry the identification code of a specific paper roll throughout its life cycle. Following several years of development and a successful pilot, IPICO Inc. (TSX VENTURE:RFD) announced today it has entered into an agreement with Mondi Technology Ventures ("Mondi"), a subsidiary of the Anglo American Group, to roll out the SmartCore tracking solution using IPICO's proprietary IP-X™ Dual Frequency ("DF") RFID technology at Mondi's March plant in the United Kingdom. The deployment is underway and IPICO is targeting successful completion by the end of this year.

The successful SmartCore pilot at Mondi has proven SmartCore to be the first RFID solution that provides a complete logistics solution for paper rolls, covering all sizes of rolls and the complete mission profile from paper through corrugated plant.

"Mondi is looking forward to the implementation of this technology at its March plant and sees exciting potential for the deployment of this application," remarked Mike Clarke, Business Leader, Mondi RFID Solutions, the unit responsible for managing the joint development effort. More than 40 plants in Mondi's Corrugated and Bag divisions currently use paper reels.

Pursuant to the agreement between IPICO and Mondi, Mondi has transferred all of its rights to the intellectual property and process that the parties created to IPICO. Mondi studied the business case for using RFID to track paper reels within its supply chain and expects that the full roll-out of the SmartCore solution will have a significant return on investment, in addition to improvements in quality control that it expects to receive by enabling its paper rolls with IPICO's Dual Frequency tags as part of the SmartCore solution.

The paper industry consumes hundreds of millions of paper rolls annually. Given the complexity of the global supply chain., the industry can benefit enormously from IPICO's DF IP-X™ technology, which provides complete visibility of paper roll stock throughout the entire logistics chain. IPICO expects fast adoption of this solution by the global paper market resulting in substantial annual recurring revenue for IPICO. IPICO is also currently developing relationships with key system integrators in the United States, Canada, Europe, the United Kingdom and China.

BACKGROUND

Presently, barcode identification systems are used to track paper rolls. When bar code identification is removed or falls off, the information about the specific paper roll is lost. However, when the SmartCore solution, using IPICO's RFID technology is used by attaching a DF RFID tag to the reel core, the identification code is maintained throughout the lifecycle of the reel from paper mill to end user. The SmartCore solution will benefit the paper industry by providing real time information about handling locations of the reel. Since the origin of the reel is known throughout its life cycle, overall costs are reduced for more efficient and automated identification and improved quality control throughout the whole supply chain and life cycle of paper rolls.

Paper and packaging is a mature industry, with paper rolls moving from paper factories to hundreds of corrugated factories spread across the globe, where they are converted into a variety of packaging products. To retain visibility across the entire life cycle of a paper roll, the tag needs to be embedded into the core of the roll, rather than attaching it to the outer shrink-wrapping. Alternative passive RFID technologies, including systems operating within regulatory limits in the 13.56 MHz High Frequency and UHF bands, were found to fall short of identifying tags in the cores of large paper rolls (with diameters going up to 2.5 m). This requirement has however been achieved by IPICO's DF RFID technology, using tags custom designed to be embedded into paper reel cores during their manufacture. The seven different custom-designed DF SmartCore readers that were developed by IPICO provide complete visibility of the movement of stock, not only between paper plants and corrugated factories, but they also cover the sophisticated handling processes inside paper plants. The RFID tracking system is integrated with centralized monitoring and control software running at Mondi plants, to provide integration of RFID data into Mondi's ERP system.

ABOUT IPICO: IPICO Inc. is an RFID solution supplier with operations in the USA, South Africa, Europe, Asia and Australia. IPICO produces smart labels and tags based on the IP-X™ communication protocol. IPICO's low interference readers comply with regulatory requirements in major geographical regions, and allow for multi-reader rollout in close proximity. The IPICO DIMI™ middleware platform manages applications in large-scale, distributed systems, while the DIMI™ data and connectivity architecture allows for effective device management, data switching and data security. IPICO's low cost RFID products excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations. These products are used to optimize the management of items, people, animals and processes within the logistic supply chain and other values chains.

For further information, go to www.ipico.com.

ABOUT MONDI: The Mondi Group was founded in 1967 by Anglo American plc. Mondi operates in over 46 countries and is principally involved in the manufacture of business paper, packaging papers, converted packaging and newsprint. Mondi saw the benefits of IPICO's robust Dual Frequency technology after Anglo started using it in its mines in South Africa to track miners and assets underground in very harsh conditions. Mondi was an early and later stage strategic investor in IPICO. Mondi is currently the second largest shareholder in IPICO behind the Brookfield Technology Fund Inc.

For further information, go to www.mondipackaging.com

This news release contains certain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including those detailed from time to time. There can be no assurance that actual results will not differ materially from expectations. Such forward-looking statements include statements regarding IPICO's strategic focus, near-term and long-term outlook, anticipated financial performance, benefits and synergies of the proposed agreement with Mondi, the growth of the market for IPICO's products and the SmartCore Solution. Actual results could differ materially from those contained in the forward-looking statements and are based on current expectations that involve a number of risks and uncertainties, including, but not limited to, the reaction of customers to the SmartCore Solution; the reaction by competitors to the proposed SmartCore Solution and the potential for increased pricing pressure by such customers and competitors; diversion of management attention from other business concerns due to the proposed alliance; undisclosed or unanticipated liabilities and risks resulting from the proposed alliance; our ability to sell multi-product solutions; the effects of a longer sales cycle as we increase our focus on large customers; market acceptance and adoption of our products and services; our ability to enhance the quality and scalability of our products to meet the needs of the customers; our ability to retain key personnel and hire new leaders to support our business; and general industry trends, general economic factors and capital market conditions. These and other risks may be detailed from time to time in IPICO's periodic reports filed on SEDAR (www.sedar.com), including, but not limited to its latest Information Circular found under Anitech Enterprises Inc. (which became IPICO INC. upon its name change).

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

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